![]() ![]() This applies both to the title to the property and the right to possess the property. In other words, it’s a promise that the Seller actually owns the property. The Covenant of Seisin is a promise that the Seller is the rightful owner of the property being sold. The General Warranty Deed has all six covenants whereas the Special Warranty Deed only has the present covenants. ![]() The other three are future covenants, which the Buyer can enforce against any previous owners of the property if these covenants are breached. Three covenants are considered present covenants, which means they apply to the Seller. The six covenants of title (warranties) represent the promises that the Seller makes. The deed transfers the legal title to the Buyer and assures that the Seller is the rightful owner of the property and is selling that property with marketable title, i.e. The General Warranty Deed and Special Warranty Deed are deeds which contain warranties/covenants which protect the Buyer Typically, when a Seller sells property to a Buyer, a deed is drafted granting title to the Buyer. This deed helps avoids the probate process. ![]() When the Grantor dies, the property is transferred to the beneficiaries in the Transfer on Death Deed. The Grantor can also revoke or modify the Transfer on Death Deed during his/her lifetime. The Grantor also retains full ownership of the property and may use it has he/she wishes. These deeds are revocable during the life of the Grantor. Virginia also does not impose a state gift tax, but the grantor is still obligated to pay the federal gift tax.Ī transfer on death deed is an instrument that allows owners of real property to convey land to chosen beneficiaries without the need for a will. They can also be utilized to donate the property to a charity or nonprofit organization.įurther, no recordation taxes need to be paid. You will usually see a deed of gift being used to voluntarily transfer property between family members or close friends. In a no consideration deed, no money is being exchanged between the Grantor and the Grantee for the property.Ī Deed of Gift, is a deed that transfers a title to real property from one party (the Grantor/Donor) to another (the Grantee/Donee). The Deed of Trust allows the lender to take the property back from the borrower if mortgage payments are not made.įirst, “consideration” in legal terms is a “bargain for exchange” which in real property transfers typically mean money. The Deed of Trust is an agreement between the lender (usually the bank) and the Borrower (Buyer) to give legal title to a Trustee until the debt (mortgage) is paid in full. Typically, a Deed of Trust is seen in mortgage situations. Therefore, it does not warrant that the Seller (Grantor) even has proper title to transfer ownership of the property to the Buyer (Grantee). The Quitclaim Deed offers no protection to the Buyer (Grantee). A Quitclaim Deed only conveys whatever interest the Seller (Grantor) has in the property to the Buyer (Grantee). Therefore, the Special Warranty Deed will not protect the Buyer (Grantor) from issues caused by prior owners. A Special Warranty Deed differs from a General Warranty Deed in it only protects the Buyer (Grantee) from breaches of specific warranties caused only by the Seller (Grantor). This type of deed is one step below a General Warrant Deed. If there is a breach of any warranty, then the Buyer (Grantee) can bring suit against the Seller (Grantor) regardless if the breach was caused by the Seller or the prior owners. A General Warranty Deed contains several warranties and protects the Buyer (Grantee) from breaches of the warranties caused by the Seller (Grantor) and all prior owners.ĭue to this expansive protection, a General Warranty Deed is the best type of deed if you are a Buyer. If you are purchasing a property, you would want a general warranty deed. This is the strongest type of deed in real estate transactions. This section will discuss the different types of deeds a person may come across when purchasing real property. Real Estate Transactions (Purchasing Real Property) Deeds: This article will discuss the different types of deeds and their respective purposes to give you a better understanding as to what type of deed you may need. The deed will also describe how title is being held by the Grantee. Typically, deeds contain the name of the current owner (the “Grantor”), the name of the new owner (the “Grantee”), the legal description of the real property, and the signature (notarized) of the Grantor. A deed is an instrument which transfers title from one individual or entity to another individual or entity (the “Grantee”). ![]()
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