In part 1 of last weeks blog. I discussed financing tools. This week in part 2 of my blog, I will be discussing ownership tools.
Ownership tools include different types of ownership warranty deeds. These are different in most states and on most applications. Here are some examples of the different ownership warranty deeds out there:
A covenant against encumbrance deed is applicable when a grantor states that the property is free of any encumbrances or liens other than the ones already told about. Basically, the buyer is guaranteed that a third party cannot get a title on the same property.
A statutory warranty deed is a special deed that is most commonly used by trustees and executors and is not as protective of the buyer as others are. The grantor of the deed delivers the property with two warranties. One, the grantor states the title has been received and two, the grantor states that during ownership the property was not encumbered.
Bargain and sale deeds are most commonly used in tax sales and foreclosure auctions and do not protect the buyer from any encumbrances. It only implies that the grantor hold the title to the property. This does not guarantee a good title from the grantor. This could give the grantee some trouble if defects later appear.
Quit claim deeds are most commonly used to transfer property between family and friends. This is the least protective of all deeds for the buyer. This deed does not provide any covenants or warranties to the buyer.
Trustee's deeds are used by a trustee, in the event of bankruptcy, to sell the debtor's property. This deed can only be executed by the trustee.
A sheriff's deed is given to the buyer for ownership rights at a sheriff's sale. These sales are usually held to pay court judgments that are against the property owner.
If you still have questions about financing and ownership, contact us. We are always here to give a helping hand and guide you through the process.
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