Not all deeds are created equal. When transferring property, the type of deed used can significantly impact your legal rights. Here’s a breakdown of the most common types:
- General Warranty Deed:
Offers the highest level of protection for the buyer. The seller guarantees clear title (with any known easements or limitations excepted) and will defend against any future claims. - Limited Warranty Deed:
Similar to a general warranty deed, but the seller only guarantees the title during their ownership period. - Quitclaim Deed:
Transfers ownership interest with no guarantees. Often used between family members or to clear title issues. - Transfer on Death Deed a/k/a “Ladybird Deed”:
The owner(s) of the Property sign a deed to their grantee beneficiaries, who can receive the property after all the prior co-owners have passed away. The owner(s) retain full control to cancel/revoke the Ladybird Deed, to change the beneficiaries, to sell the property, etc. The grantee beneficiaries have to file an Affidavit within 9 months of each owners’ death to ‘accept’ the gift.
Choosing the wrong type of deed can lead to serious legal trouble. If you’re unsure which deed to use, consult with a deed lawyer to make the right decision.
