Your Real Estate Edge Real Estate "Word of the Day"

Real Estate Word of the Day "Deed"

A deed is the document that transfers ownership of real estate. It contains the names of the old and new owners and a legal description of the property, and is signed by the person transferring the property. You can't transfer real estate without having something in writing, which is almost always a deed. It may be recorded in the county where the property is located, but it doesn't have to to be legal.
There are a variety of deeds that convey more of less of a guarantee of ownership of title. The least secure deed is the "Quit Claim Deed". It is a deed that transfers whatever ownership interest the transferor has in a particular property without guarantee about what is being transferred. This is the type of deed that is frequently used in a divorce when either party transfers ownership to the other party as part of the settlement.
Quitclaim deeds are also frequently used when there is a "cloud" on title -- that is, when a search reveals that a previous owner or some other individual, like the heir of a previous owner, may have some claim to the property. The individual can sign a quitclaim deed to transfer any remaining interest.
Next in line is the Bargain and Sale Deed. A deed that conveys title to real property but does not guarantee clear title. It is often used by court officials who are only holding title by force of law IE. courthouse sale of foreclosed property.
A Warranty deed transfers ownership and explicitly promises the buyer that the transferor has good title to the property, meaning it is free of liens or claims of ownership. The transferor guarantees that he or she will compensate the buyer if that turns out to be wrong. The warranty deed may make other promises as well, to address particular problems with the transaction.
These are the most popular deeds seen in Washington State. There are others. When you are purchasing a piece of property you should familiarize yourself with the type of deed you will be receiving and make sure that you understand the warranties if any that it implies.