Closing can be a little intimidating. Know more information about the process helps.
Property deeds are written documents used to transfer real estate from a seller (grantor) to a buyer (grantee).
l General warranty deed guarantees: the grantor is the owner of the property and has the right to sell it to the grantee; there are no debts on the property or defects in structures other than those recorded in the deed.
l Special warranty deed: includes the warranty. It only guarantees that there are no debts on the property or defects in structures other than those stated in the deed during the period of the grantor’s ownership.
l Grant deed: implies that the grantor has the right to sell the property, and that the property itself is unencumbered. However, it does not make explicit warranties.
l Quitclaim deed: has no warranty at all. Its purpose is for one party to release any interest that they had in a property such as in divorce cases.
l Deed-in-lieu of foreclosure: a homeowner who misses several payments and defaults on a loan transfers the deed to the lender in order to avoid foreclosure. This can use any of the above deed types in the transfer. There is no transfer of money because the homeowner owes the lender; the lender sells off the house to recover at least part of what the homeowner owes.