Estate Deeds. Other Deeds. In Georgia, when an Owner's Title Policy is acquired at closing, the policy insures the purchaser regardless of the quality type of deed delivered at closing. Adding a Co-Owner to Title? Any party desiring to change title should speak with a reputable Georgia real estate attorney first.
Changing ownership by common method of quitclaim deeding has serious potential consequences to any title insurance policies in effect, since conveyances subsequent to issuance of a title policy may void coverage. Speak with a Real Estate Lawyer. Contact Info. Commonly Used Deeds in Georgia. Did you know that the Georgia Association of Realtor Purchase and Sale Agreement form was changed in to reduce the quality of title required by a seller?
Instead of requiring a seller to deliver by "Warranty Deed," a seller is now only required to delivery by "Limited Warranty Deed. Click on Any Header for Detailed Information.
The Warranty Deed delivers the highest quality of title. In a Warranty Deed, the grantor agrees to warrant and defend the grantee against a defect in title. So long as each successive conveyance is by Warranty Deed, an original grantor may continue to be liable to successors.
In practicality, often when a defect is discovered, the party giving the warranty is either long gone or unable to pay. Therefore, title insurance becomes an indispensable mechanism for a purchaser in ensuring unencumbered title. An owner's title insurance policy continues to be valuable, even after the property has re-sold, since the grantor may retain liability for the warranties to any new purchaser.
Historically, the Limited Warranty Deed has been used only by corporate entities, such as builders or developers in order to limit the seller "grantor" from liability.
This type of deed does not contain general warranties of title, but instead warrants against only those liens or encumbrances created by the seller. The Special Warranty Deed is generally used when a government entity is selling a foreclosed property. Other than name, this deed is the same as the Limited Warranty Deed.
The Builder's Deed is sometimes seen when a builder or developer is selling newly built homes. Not all Quitclaim Deeds are drafted alike.
If you are the buyer, you can require a warranty deed in order for the transaction to take place. A real estate lawyer can help with this. Usually, the lender will send off all the mortgage documents to be recorded, and the recording fees are rolled into the loan closing costs. Though a quitclaim deed is similar to a warranty deed, it is not interchangeable. A quitclaim deed only states that the grantor is giving up their legal interest in a property.
Another document that you might confuse with the warranty deed is the deed of trust. If you take out a loan to finance a home purchase, you will sign either a mortgage contract or a deed of trust but not both.
Casey Bond is a seasoned personal finance writer and editor. Casey is also a Certified Personal Finance Counselor. Follow her on Twitter CaseyLynnBond. Select Region. United States. United Kingdom. Casey Bond, Mike Cetera. Contributor, Editor. Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations.
What Is a Warranty Deed? Types of Warranty Deeds There are actually two types of warranty deeds. General Warranty Deed A general warranty deed offers the highest level of protection to the buyer. According to Legal Zoom, a general warranty deed guarantees that: The grantor legally owns the property and has the legal right to transfer it. There are no outstanding mortgages, liens or other claims against the property by any creditor.
The grantor has a clear title. If there is a breach of the warranty, the grantee is entitled to compensation from the grantor. The grantor intends to transfer the property to the grantee. Special Warranty Deed A special warranty deed works similarly to a general warranty deed, except that it only applies to a certain timeframe.
Grant Deed In some cases, a landowner might use a grant deed in place of a warranty deed. How to Get A Warranty Deed A buyer typically needs a warranty deed when they attempt to get a mortgage or title insurance.
A warranty deed is a document sometimes used in real estate, which offers the buyer of property the greatest amount of insurance. It guarantees or warrants that the property is owned by the owner free of any unpaid liens, mortgages, or other obligations against it. The seller or lender, also known as the grantor, and the buyer or the grantee are the two parties involved in a warranty contract. A party may be a person or a company, and they are often strangers. There are several types of deeds, such as the special warranty deed, the quitclaim deed, and the warranty deed.
The disparity between these contracts is generally determined by what warranties and covenants are communicated to the buyer from the seller.
A deed is a significant legal document transferring property from one person to another — often in the case of a transaction related to real estate. The buyer is provided with the highest form of security by a general guarantee deed. Warranty deeds are also put in place while a borrower is seeking to get a mortgage or title insurance financing.
All deeds include the date of the sale, the names of the parties concerned, a description of the exchanged property, and the buyer's signatures. The grantor is responsible with a general warranty deed for a violation of certain warranties and assurances, even if the violation happened without his or her knowledge or during a time when the grantor did not own the land.
The general warranty deed puts a great deal of responsibility on the grantor because he or she is responsible for any violations that could have happened well beyond their understanding of property ownership.
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