You’ve found the perfect piece of real estate and submitted your bid. The seller’s accepted, and you’re ready to move forward with making the agreement official with the signing of documents and making payment. Not so fast. Buying real estate is an investment, and you need to protect your interests. This means choosing the right warranty protection. There are several types of home deeds, and knowing which one applies to your situation is crucial.
What Is a Home Deed?
Property or home deeds are legal documents that transfer the ownership of a piece of real estate. They are different from a title, which is the document that states who the owner of the real estate is. As the property owner, you will have both deed and title. However, unlike a physical deed, a title is conceptual.
How Do Home Deeds Work?
A deed must be a part of any real estate purchase. It’s the physical record of who owns the property, who bought it, and who they transfer it to next. As a part of the property sale, both parties sign the deed. It is then notarized and becomes a part of the public record.
To be enforceable, the deed must include a detailed description of the property. It should show the property lines that make up the property’s perimeter getting sold. While there’s no specific template for crafting a property deed, these pieces of information should be included.
- Names of the seller and buyer
- Buyer and seller addresses
- Description of the property
- Words of conveyance
- Consideration
- Signatures
Types of Warranty Deeds
Not all deeds provide the same level of protection for the seller and buyer. Florida law recognizes six types of deeds. Some offer no guarantees at all, such as a quitclaim and fee simple deeds. Others, like a bargain and sale deed, are used during specific types of sales. This type of deed is used during these tax sales and property foreclosures when the seller may not know the full history of the property, and it could be subject to other ownership claims.
Special Warranty
A special warranty deed will give specific protection. It states that the seller is the title holder and that the property was encumbered while they owned it. This type of warranty deed is typically used for commercial property transactions.
General Warranty
In Florida, a general warranty deed gives complete and full protection. It will legally protect the buyer from any type of claim. This is the most common type of warranty used. Because it’s the most comprehensive protection, it’s the most common type of deed during the sale and purchase of residential real estate. This is because the deed not only protects the new homebuyers but also the title and mortgage companies.
When to Use a Warranty Deed
If you don’t know and trust the person you are buying real estate from, you should have a warranty deed. They may also be required when securing a mortgage or purchasing title insurance. These third parties want some reassurance that the property isn’t going to be subject to other claims of ownership.
How to Obtain a Warranty Deed?
While you could use an online template or service to make your own warranty, this could lead to potential problems later on. Speaking with a real estate attorney can help ensure you choose the right type of warranty deed for your property sale or purchase. this helps you protect your property investment. It also ensures that the document used is legally enforceable in the state of Florida. Otherwise, you risk finding out that you don’t have the protection you need when you need it the most.
Do You Have the Right Warranty Home Deed?
Is there a piece of property that you are interested in buying or selling? Then it’s time to speak with a real estate attorney. They can help you prepare the necessary documents. That way, your interests are protected both now and into the future.
Schedule a consultation with one of our knowledgeable attorneys today.
