Understanding the Difference Between a Quitclaim Deed and a Warranty Deed in Real Estate Transactions
When it comes to real estate transactions, understanding the legal documents involved, from your contract to the closing, is crucial. Two commonly used documents are the Quit Claim Deed and the Warranty Deed. Although they may seem similar, these deeds have significant differences in terms of the protection they offer to the buyer of the property. In this article, we will delve into the dissimilarities between a Quit Claim Deed and a Warranty Deed, shedding light on their implications for property owners in Brevard County.
What is a Quit Claim Deed?
A Quit Claim Deed is a legal instrument used to transfer property ownership interest from one party (grantor) to another (grantee). However, it is important to note that a Quit Claim Deed offers the least amount of protection to the grantee. A Loan Policy and/or an Owner’s Policy cannot be issued when a Quit Claim Deed is used to transfer title. The seller of the property makes NO assurance that he actually has any interest or ownership in the property.
Understanding the Limitations:
Unlike a Warranty Deed, a Quit Claim Deed does not provide any guarantees or warranties regarding the title of the property. This means that the grantor is merely transferring their interest in the property, without making any assurances about the property’s validity or potential issues. A vast array of complications could arise for a future owner of this property, since the potential clouds on that property’s title would not have been examined or resolved.
Exploring the Warranty Deed:
On the other hand, a Warranty Deed offers a higher level of protection to the grantee. With a Warranty Deed, the grantor guarantees that they have clear ownership of the property and have the legal right to transfer it. The seller, or grantor, guarantees clear title to the real property and warrants there will be no third-party claims to the property; they own it completely, and the property is free and clear of any encumbrances. This claim could be defended in a court of law if ever necessary.
Comprehensive Title Protection:
In addition to asserting clear ownership, a Warranty Deed also warrants that there are no undisclosed encumbrances or claims against the property – those clouds on title that were mentioned above. This means that if any issues arise regarding the title in the future, the grantee may have legal recourse against the grantor.
Understanding the differences between a Quit Claim Deed and a Warranty Deed is essential for anyone involved in real estate transactions in Brevard County. While a Quit Claim Deed provides a simple transfer of ownership without warranties, a Warranty Deed offers a higher level of protection to the grantee, guaranteeing clear ownership and safeguarding against undisclosed encumbrances.
Remember, it is always advisable to consult with a real estate attorney or title professional to ensure you choose the appropriate deed for your specific situation. Supreme Title would be happy to assist regarding further information for the sale of a property. Please contact us at your convenience.
Supreme Title makes no representations or warranties with respect to the accuracy or completeness of the matters addressed.
Please contact Supreme Title with questions you may have.
info@supremetitlellc.com or reach us by phone at: 321-725-0115