Transferring the Property
Transfer of property is often made using a general warranty deed because it offers the most protection for the buyer. By offering a general warranty deed, the seller guarantees good title, not only during the time the seller owned the property but going back throughout its history.
That doesn't mean that problems won't surface, but if a title examination was done, it means that the settlement agent who prepares the deed feels comfortable that it is free of problems.
A seller, called the grantor, who conveys property with a general warranty deed guarantees that the following are true:
He or she is the property owner and has the right to sell the property.
The property is free and clear of liens and encumbrances, except those in the public records.
No one else has a right to claim ownership of the property.
He or she will pay the buyer for loss if future problems arise.
That last guarantee isn't always valuable since the seller might not be in a position to pay the buyer if problems surface. For that reason, title insurance is always a must, even when problems seem remote.
Transferring Property with a Special Deed
Property is sometimes transferred on special types of deeds if one or more of the provisions of a general warranty deed cannot be guaranteed. Special deeds are also used to allow an individual to relinquish all claims they have on a property.
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