Your Guide to Deeds and Property Ownership

In the world of real estate, deeds play a crucial role in transferring property ownership. Each type of deed serves a distinct purpose and offers varying levels of protection to buyers and sellers alike. Understanding the different types of deeds is essential for anyone involved in real estate transactions, whether you’re buying, selling, or transferring property. In this article, we’ll delve into the major types of deeds in real estate, exploring their definitions, purposes, and importance in ensuring clear title and legal ownership.

General Warranty Deed

Quick answer: A general warranty deed is ideal for buyers seeking maximum protection in property transfers, ensuring clear ownership and defense against future claims.

A general warranty deed is the gold standard when it comes to property transfers. This type of deed provides the highest level of protection for buyers, as it comes with warranties and guarantees from the seller. These warranties typically include covenants related to the seller’s ownership of the property, the property’s freedom from encumbrances, and the seller’s promise to defend the buyer against any future claims to the property.

Limited Warranty Deed

Quick answer: A limited warranty deed is best for buyers who want protection against defects and encumbrances caused by the seller but are not concerned about issues predating the seller’s ownership.

A limited warranty deed contains limits or excepts liability on the covenants. The type most used will limit the warranty to the “claims of the grantor and all persons holding or claiming by, through, or under the grantor.” Such a deed would still cover defects and encumbrances created or suffered by the seller or grantor, but give no protection against an outstanding superior title or encumbrance dating prior to the grantor’s ownership. 

Survivorship Deed

Quick answer: In Georgia, a deed with joint tenancy and rights of survivorship is best for co-owners, married or not, who want the property to automatically pass to the survivor upon one owner’s death.

In many states a deed to husband and wife creates a tenancy by the entirety, so that upon the death of either, the entire title passes to the survivor. Georgia does not recognize tenancy by the entirety, but the same result can be achieved by adding survivorship provisions to the usual warranty deed or quitclaim deed so that title is conveyed as joint tenants with rights of survivorship. In Georgia, joint tenancy with rights of survivorship has the benefit of being available to non-married persons and is not limited to two co-owners.

Quitclaim Deed

Quick answer: A quitclaim deed is best for transferring property between family members or resolving title issues, as it offers no warranties and only transfers the grantor’s interest in the property.

A quitclaim deed is often used to transfer ownership of property between family members, as well as to resolve title issues or disputes. Unlike warranty deeds, a quitclaim deed offers no warranties or guarantees regarding the property’s title. Instead, it simply transfers or releases whatever interest the seller or grantor may have in the property, without making any warranty about the quality of that interest.

Tax Sale Deed

Quick answer: A tax deed is best for buyers acquiring property at a tax sale, understanding it comes with the original owner’s redemption rights and requires foreclosure of these rights for full ownership.

A tax deed is issued to transfer ownership of property that has been sold at a tax sale due to delinquent property taxes. This type of deed conveys ownership of the property to the highest bidder at the tax sale subject to the redemption rights of the original owner.  The original owner has 12 months from the date of sale to redeem the property by paying the tax sale purchaser the price paid at the sale plus interest and other costs as provided by law. The right of redemption must be foreclosed before the purchaser at the tax sale can obtain a fee simple title.  A tax deed is not a warranty deed.

Conclusion

Whether you’re buying, selling, or transferring property, knowing the differences between each type of deed can help protect your interests and ensure clear title and legal ownership. If you’re unsure about which type of deed is right for your situation, it’s always best to seek professional guidance from a real estate attorney. With their expertise, you can navigate the complexities of real estate transactions with confidence and peace of mind.