A deed is a legal document that transfers property ownership from one party to another. However, not all deeds provide the same level of protection. Some ensure a clear title, while others offer little to no guarantees. Understanding the different types of deeds helps you choose the right deed for your situation.
What Is a Property Deed?
A property deed shows the transfer of property between parties. The main difference between a property deed and a title is that a deed shows the action of the transfer while a title proves ownership. While there are many different types of deeds, each one includes these key elements:
- The grantor and grantee: The grantor, or the seller, and the grantee, or the buyer, both need to verify and sign the deed.
- The statement of consideration: The consideration refers to the payment amount or arrangement for the property transfer.
- A description of the property: Include a short description of the condition, size, and location of the property being transferred.
- A notarized signature: Notarizing the grantor’s signature ensures a legally valid and binding transfer.
- Any agreed-upon conditions: Additional conditions and contingencies for the sale should be listed on the deed.
You can ensure your deed has all the necessary information with Legal Templates’ easy-to-use document editor and customizable property deed templates. Start your free 7-day trial to create an accurate and binding deed that protects your property without the high costs of traditional legal services.
Have a lawyer review your deed and keep a copy for your own records to get the most protection.
9 Most Common Types of Deeds
The type of deed required for your situation varies depending on the property being transferred and the terms of the transaction. Learning about the nine most common types of deeds can help you determine which document offers the best protections and solutions for you.
The most frequently used property deeds include warranty deeds, quitclaim deeds, grant deeds, and mortgage deeds. Other types include trust deeds, gift deeds, survivorship deeds, contract of deeds, and bargain and sale deeds, which may be used for gifting or transferring property.
| Type of Deed | Protection Level | Best Use Cases | Legal Risks |
|---|---|---|---|
| Warranty Deed | Highest | Obtaining a mortgage | Protection against claims, liens & debts |
| Quitclaim Deed | Low | Passing property to family or divorce | Risk of liens & invalid title |
| Grant Deed | Medium | Acquiring a tax or foreclosure sale | Risk of title issues from previous owners |
| Mortgage Deed | Medium | Loans with property as collateral | Possible judicial-foreclosure |
| Deed of Trust | Medium | Mortgage with borrower, lender & trustee | Possible non-judicial foreclosure |
| Survivorship Deed | Low | Leaving property to spouse or family | Establishes different types of ownership |
| Bargain and Sale Deed | Low | Foreclosure, tax sales & estate settlements | No protection for claims or defects |
| Gift Deed | Low | Gifting property & estate planning | No warranties & gift taxes |
| Contract for Deed | Medium | Seller financing & buyer payments | No title transfer until paid in full |
1. Warranty Deed
Use a warranty deed when looking to buy a home or residential property with a mortgage loan. A warranty deed ensures that the grantor holds the title to the property or real estate and has the right to transfer their ownership. This deed proves that the property has no outstanding liens, debts, or encumbrances.
It provides ample protections for the grantee and allows for legal recourse if unsettled debts or issues arise. While a warranty deed serves as the most commonly used deed, it also includes two different types.
General Warranty Deed
Typically used in residential real estate transactions, general warranty deeds guarantee the seller has the full legal right to sell the property and that it is clear of any claims or issues throughout the property’s entire history. This type of deed offers the most significant protection for the grantee and provides methods for legal action if unsettled debts or issues occur.
Special Warranty Deed
A special warranty deed, sometimes called a limited warranty deed, also assures that the grantor has full rights and ownership. However, special warranty deeds differ from a general warranty because the guarantee only applies to the time in which the seller has owned the property.
This type of deed does not protect against debts, liens, or encumbrances from previous owners. Many commercial real estate owners use a special warranty deed when they do not know the full history of the property.
| Type | Protections | Best For |
|---|---|---|
| General Warranty Deed | Ownership guarantees | Residential real estate & mortgages |
| Special Warranty Deed | Ownership guarantees No protection from previous owners | Properties with unknown history |
2. Quitclaim Deed
A quitclaim deed allows the grantor to “quit” their claim to the property and pass it to the grantee. Often a quitclaim deed transfers property to family and helps to add or remove a spouse from the title after a marriage or divorce. It transfers whatever interest in a property the grantor has and does not offer any guarantee of ownership. The possible repercussions of a quitclaim deed include complications such as:
- Invalid titles: If the grantor does not have full legal ownership, the title may be considered invalid, which can cause complications.
- Outstanding liens: The property may still have a lien that would allow the lender to collect payments or foreclose even after the property transfers.
- Mortgage obligations: When a seller owes a balance on the mortgage, the buyer may have those obligations passed to them.
A quitclaim deed typically works when both parties have established trust. Sometimes, a quitclaim deed can also help with correcting title defects.
A quitclaim deed may involve little or no money exchanged, depending on the situation and state laws.
3. Grant Deed
Grant deeds guarantee that the owner has not previously transferred ownership and that no undisclosed liens or legal claims apply to the property. This type of deed commonly occurs in the transfer of real property, such as buying or selling a house through a tax or foreclosure sale.
A grant deed protects the grantee and checks the status of the property. Unlike warranty deeds, a grant deed does not guarantee protection from title problems before the grantor takes possession, as the seller may not have full information about the history of the property.
| Warranty Deed | Grant Deed | |
|---|---|---|
| Buyer Protections | Full protections | Partial protections |
| Seller's Liability | Title issues before & during ownership | Clear title only during ownership |
| Best Use Case | Property purchases requiring a mortgage | Title transfers through a tax or foreclosure sale |
4. Mortgage Deed
A mortgage deed allows a homeowner to secure a loan from a bank or financial institution when the loan requires the use of real property as collateral. In this case, the property serves as collateral for the loan. Unlike other deeds, a mortgage deed does not transfer ownership. With an active mortgage deed, the buyer holds the equitable ownership while the lender holds the legal title.
The buyer makes a mortgage payment toward the loan debt and the property acts as security in case of a default. If the homeowner defaults, the lender can obtain a court order for judicial foreclosure to recover the remaining debts.
5. Deed of Trust
A deed of trust, also known as a trust deed, is used for real estate financing in states such as Arizona, California, Colorado, Texas, Tennessee, Utah, and others. In this arrangement, the title goes into a trust while the buyer makes payments. This type of deed requires the following parties for a proper transfer of ownership:
- Borrower: The borrower, or buyer, makes payments on the loan until it’s paid in full.
- Lender: The lender passes the title to the trustee for the duration of the loan.
- Trustee: The trustee, usually a title company, holds the property title in a trust until the buyer fully repays the loan.
Deeds of trust contain a power-of-sale clause, allowing the trustee to sell the property without a court order in case of foreclosure. This process is a non-judicial foreclosure, which allows for foreclosure without obtaining a court order. Many states use a deed of trust instead of traditional mortgages.
Deed of Reconveyance
In a deed of trust, the trustee transfers ownership to the borrower after they fully pay their loan. This requires a deed of reconveyance to acknowledge the payment, release the property from the lien, and transfer the title to the buyer. The trustee prepares this deed of reconveyance and files it for the public record as evidence of the property being free from liens.
6. Survivorship Deed
A survivorship deed benefits those who share possession of real estate as it transfers ownership to a surviving spouse, family member, or co-owner. This type of deed allows them to receive the automatic transfer of a deceased owner’s share of the property.
In many cases, a survivorship deed serves as an end-of-life document that bypasses the probate process after the death of a joint property owner. Commonly, a survivorship deed adds a spouse, family member, or individual as a co-owner to ensure automatic inheritance upon death.
Check local laws and consult with a lawyer since a survivorship deed may establish different forms of ownership depending on the location.
7. Bargain and Sale Deed
Use a bargain and sale deed for property transactions included in foreclosure, tax, or estate settlement processes. With a bargain and sale deed, the grantee receives assurance that the grantor has clear ownership of the property, however, the grantee assumes the risk of any debts, burdens, or defects in the title. This type of deed applies when the seller has limited knowledge of the property’s history or status.
When handling a bargain and sale deed, the lack of guarantees makes it important for the buyer to perform a title search and learn more about the property.
Obtaining title insurance can also help mitigate the risks involved in a deed.
8. Gift Deed
A gift deed, or a deed of gift, transfers money or real property to a recipient without receiving a payment in return. They are often used to give assets to loved ones or charities and aid in estate planning. Grantors can transfer property to reduce their taxable estate and allow recipients to bypass the probate process.
This kind of deed involves the grantor giving up their property with no warranties or guarantees. Gift deeds have three distinct characteristics:
- Flexibility: A revocable gift deed allows the grantor to cancel the transfer before it is finalized, while an irrevocable gift deed cannot be changed.
- Gift Tax: Property transferred through a gift deed may be subject to gift tax, depending on state and federal laws.
- Third-Party Involvement: A gift deed may require a legal agent or representative to complete the transfer on behalf of the grantor.
9. Contract for Deed
A contract for deed offers a unique arrangement that benefits buyers who struggle to secure a mortgage loan or for sales between close friends and family. In this situation, the seller finances the buyer’s purchase. This reduces the role of the lender as the buyer makes payments directly to the seller. The buyer receives equitable ownership of the property, but they do not receive the legal title until the purchase price is paid in full.
A contract for deed differs from a traditional mortgage because the lender is the same as the seller. The buyer assumes more risk by dealing directly with the seller instead of a third-party lender. The seller also takes on extra risks as the property loan remains under their name and appears on their credit reports.
How to Determine What Type of Deed You Have
If you want to know what type of deed you have for your property, begin by obtaining a copy of your document from the local county recorder’s office or land registry. Once you provide your address, parcel number, and name, search for digital or in-person access to a copy of your deed.
Looking at the different components of your property deed allows you to determine the type. For example, a deed that guarantees the property is free of debt or legal claims is likely a grant deed. You can determine the type of deed by evaluating these key elements:
- The parties involved
- The presence of guarantees
- The type of transfer being enacted (gift, sale, loan, inheritance)
Check if your county offers digitized records to search for and find your deed online.
Choosing the Right Deed for Your Needs
Whether you plan to buy or sell a house or other property, it’s important to choose the right type of deed for your situation. Consider what protections, considerations, and conditions you want to include. You can use this decision-making flowchart to select the best type of deed for you.
How to Transfer a Property Deed
You may use a deed to transfer property for a variety of reasons such as gifting, divorce settlements, or establishing a living trust. Follow these steps to transfer a property deed:
- Obtain a copy of the current deed: Make sure you have a copy of the current deed from the property’s local office to get the proper information.
- Confirm the description: Before transferring property, confirm that the document accurately portrays its current condition.
- Select the right type of deed: Transferring property requires creating a new deed, so determine which type to use for your specific situation.
- Draft your document: Begin drafting your new deed with Legal Templates’ property deed document builder and template.
- Sign and notarize the deed: Have the grantor’s signature notarized to validate the transfer and document.
- File with the local office: File the document with the county recorder’s office that oversees the address of the transferred property and keep a copy for yourself.
Protecting Your Property Rights
Having the right kind of deed helps protect your property rights whether you’re selling, gifting, buying, or receiving assets. Learning about the different types of deeds allows you to avoid unexpected debts, liens, tax costs, or fees. Request to see your deed and verify that you have the right protections to gain a sense of security when handling your property.
Legal Templates offers property deed templates so you can easily create a secure and legal document that protects your property rights. No matter what type of deed your situation requires, Legal Templates guides you through inputting the required information and formats your documents to meet your needs.
Frequently Asked Questions
What does a deed look like?
The exact format of a deed varies depending on the type, but your deed should look like a short document with the names of each party, the address and description of the property, and notarized signatures.
How can I see the deed to my house?
You can see the deed to your house by providing your information and requesting the document from your property’s county recorder’s office either in-person or online.
What is the safest type of deed?
A general warranty deed is considered the safest type of deed for real estate as it offers the most protection for the buyer and ensures that the property has no outstanding debts, liens, or claims.
Does a warranty deed prove ownership?
No, a warranty deed does not prove ownership. However, it ensures that the seller has the right to sell the property. Ownership can be proved with a title document.
