At Lancaster, Trotter, Pickett & Owens PLLC, we strive to provide not only exceptional service, but also clarity on important legal matters. When you come to us for help with transferring real estate, one of the first things we do is make sure you understand what type of deed best fits your situation. The type of deed used can significantly impact the buyer’s rights and the seller’s obligations, so it’s important to get it right.

Whether you’re transferring property to a family member or completing a full market sale, we’re here to guide you. Below are the three most common types of deeds used in real estate transactions, each with different levels of protection and legal effect:

1. Non-Warranty / Quitclaim Deed

A Non-Warranty Deed, also known as a Quitclaim Deed, is typically used in low-risk, trust-based situations. This would include transfers between family members, divorce settlements, or correcting title issues.

With this type of deed, the grantor (seller) transfers whatever interest they have in the property, but makes no promises or guarantees about the title. That means:

  • The grantor may or may not actually own the property.
  • There are no warranties about liens, claims, or title defects.
  • The grantee (receiver) has no legal protection if issues arise later.

Quitclaim deeds are fast and simple but are generally only recommended when both parties trust one another, and no money is changing hands.

2. Special Warranty Deed

A Special Warranty Deed provides limited protection for the buyer. It’s commonly used in commercial transactions, estate sales, or when the seller has not owned the property long.

With this deed, the seller guarantees that:

  • They haven’t caused any title issues during their period of ownership.
  • They are not responsible for any problems that may have existed before they acquired the property.

This deed includes two key legal promises (covenants):

  • Covenant against encumbrances during ownership
  • Covenant of quiet enjoyment, limited to the seller’s ownership period

A Special Warranty Deed offers more protection than a quitclaim, but less than a general warranty, so it’s important to also conduct a title search and obtain title insurance.

3. General Warranty Deed

The General Warranty Deed offers the highest level of protection for the buyer and is the most commonly used deed in traditional residential real estate transactions.

With this deed, the seller guarantees:

  • They hold clear title to the property
  • The property is free of any liens or title defects
  • They will defend the buyer’s title against all claims, even those that originated before their ownership

This type of deed includes all common law covenants, applies to the entire history of the property, and is often required by lenders when a mortgage is involved. It’s widely considered the gold standard for property transfers due to the full legal protection it provides.

In closing, choosing the right deed isn’t just a formality, it can affect your rights, your liability, and your peace of mind. At Lancaster, Trotter, Pickett & Owens PLLC, we’re here to ensure you understand your options and are protected throughout your real estate transaction.

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