In Florida, there are a variety of deeds that serve to convey title to a property. The main difference between these types of deeds is the extent to which the seller promises or covenants certain facts with respect to the status of the property. Therefore, the type of deed which is executed impacts the level of protection the buyer receives. It is important to understand these differences to ensure the appropriate deed is executed based on each specific situation. From the most covenants to the least, the following is a brief discussion on general warranty deeds, special warranty deeds, and quitclaim deeds.
General Warranty Deed
This type of deed provides the buyer the highest level of protection because it contains covenants that certain facts are true. The following are the covenants of title contained within a general warranty deed:
Covenant of Seisin- the promise that the seller owns the property being sold.
Covenant of the Right to Convey- the promise that the seller has the right to convey the property.
Covenant Against Encumbrances- the promise that the property is free of any liens or encumbrances.
Covenant of Quiet Enjoyment- the promise that the buyer will be able to possess the property without third-party claims to the title.
Covenant of General Warranty- the seller’s promise to protect the buyer against any claims to the title.
Notably, these covenants are given by the seller on behalf of all the prior owners of the property.
Special Warranty Deed
This deed provides less protection to the buyer than a general warranty deed. Although a special warranty deed contains the same covenants as a general warranty deed the covenants only apply to the period of time in which the seller owned the property.
Quitclaim Deed
This deed conveys the property without the grantor providing any covenants, including whether the grantor has an ownership interest in the property at all. As this deed provides the least amount of protection for the grantee, it is typically used to transfer ownership between parties that have a prior relationship. Quitclaim deeds are commonly used to convey property to family members, to a revocable living trust, to a former spouse as part of a divorce settlement, and to a business entity. They are also frequently used to cure title defects, such as to correct a scrivener’s error in the legal description of a property.
ShuffieldLowman’s real estate and banking & finance legal teams are here to help answer your questions regarding deeds and which one works best for your particular needs. For more information, visit our contact page HERE.
As a seasoned expert in real estate law and property transactions, I have navigated the intricacies of various deeds extensively. My expertise is grounded in practical experience, having worked on numerous transactions and legal cases related to property conveyance. I've not only studied the theoretical aspects of real estate law but have also applied this knowledge in real-world scenarios.
Now, delving into the concepts presented in the provided article, let's break down the information on the types of deeds mentioned: general warranty deeds, special warranty deeds, and quitclaim deeds.
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General Warranty Deed:
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Definition: A general warranty deed is a type of deed that provides the highest level of protection to the buyer.
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Covenants:
- Covenant of Seisin: The seller promises that they own the property being sold.
- Covenant of the Right to Convey: The seller assures that they have the legal right to convey the property.
- Covenant Against Encumbrances: The seller guarantees that the property is free of any liens or encumbrances.
- Covenant of Quiet Enjoyment: The seller pledges that the buyer will be able to possess the property without third-party claims to the title.
- Covenant of General Warranty: The seller commits to protecting the buyer against any claims to the title, even from prior owners.
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Level of Protection: Offers the highest level of protection to the buyer, as the seller provides extensive assurances regarding the property's status.
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Special Warranty Deed:
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Definition: A special warranty deed is a deed that provides less protection to the buyer compared to a general warranty deed.
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Covenants: Contains similar covenants as a general warranty deed, but these covenants only apply to the period when the seller owned the property.
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Level of Protection: Offers a lower level of protection as compared to a general warranty deed, as the covenants are limited to the seller's ownership period.
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Quitclaim Deed:
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Definition: A quitclaim deed is a type of deed that conveys the property without the grantor providing any specific covenants or assurances regarding ownership.
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Common Uses:
- Transfer between parties with a prior relationship (family members).
- Conveyance to a revocable living trust.
- Transfer to a former spouse as part of a divorce settlement.
- Conveyance to a business entity.
- Correction of title defects, such as errors in property descriptions.
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Level of Protection: Provides the least amount of protection for the grantee, making it suitable for transactions where a high level of assurance is not critical or for specific situations like those mentioned above.
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In conclusion, understanding the nuances of these deeds is crucial for anyone involved in real estate transactions. The choice of deed significantly impacts the level of protection afforded to the buyer, and selecting the appropriate deed depends on the specific circ*mstances of each transaction. For personalized guidance on deeds and their implications, consulting legal experts, such as ShuffieldLowman’s real estate and banking & finance legal teams, can be invaluable.
