Real estate deeds are the legal documents that one needs for the transfer of ownership of a property from one party to another. The grantor signs the deed, transferring ownership to the buyer (grantee), who accepts it. Deeds are commonly recorded with the local government to ensure the transfer’s legality and protect all parties involved in the transaction. As a result, it is critical to understand the various types of Real Estate deeds for your Knoxville home.
3 Popular Types of Real Estate Deeds in Tennessee and Their Uses
1. General Warranty Deed
This warranty deed is the most commonly used in Tennessee real estate transactions. Such a warranty deed provides the buyer with the most outstanding level of protection, ensuring that the property is free of all liens. The warranty deed protects the buyer in ways that other deeds do not. They can also be confident that the seller has the authority to sell the property, ensuring that the transaction is legal and valid.
Hence, putting it in one sentence: It guarantees that the seller can sell the property and that the title is free of any liens or encumbrances.
2. Quit Claim Deed
In Tennessee, quit claim deeds are a standard method of transferring property ownership. Such deeds grant the recipient the right to occupy and exclude others from the property. They do not guarantee the title’s validity, so they are generally used when the parties involved are acquainted. So, a Quit Claim Deed is a basic deed that transfers whatever interests or rights the person has in the property. Because this type of deed includes all liens or encumbrances associated with the property and previous owners, the recipient should always check for these before accepting the transfer.
3. Special Warranty Deed
A Special Warranty Deed is a deed that guarantees that the seller has not encumbered the property during their ownership. A special warranty deed is a standard option when transferring residential properties in Tennessee. It is frequently in use when buying foreclosures and bank-owned properties. A special warranty deed assures the buyer, but not to the same extent as a full warranty deed. The seller guarantees that they can convey the property and that they have done nothing that would cause a title defect during their ownership period. Although more comprehensive than a full warranty deed, this can still provide some assurance. Click here to learn more about deeds.
Understanding types of real estate deeds is essential before entering any legal formalities related to a property. They will determine the rights, responsibilities, and obligations of the parties involved. Always know the details before signing.
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