When it comes to real estate transactions in Harford County, there are several types of deeds that you may encounter during the process. A deed is a legal document used to transfer ownership of a property from one party to another. Understanding the different types of deeds is crucial for any real estate transaction, whether you are buying or selling property in Harford County. In this blog post, we’ll discuss six common types of deeds you’re likely to encounter in Harford County real estate.
1. General Warranty Deed
A general warranty deed is the most common type of deed used in Harford County real estate transactions. This type of deed provides the buyer with the highest level of protection against any claims or liens against the property. With a general warranty deed, the seller guarantees that they have clear title to the property and that there are no outstanding liens or claims against it. This is the most common type of deed and offers the greatest protection to buyers.
2. Special Warranty Deed
A special warranty deed is similar to a general warranty deed, but it provides less protection to the buyer. With a special warranty deed, the seller guarantees that they have clear title to the property, but only for the time that they owned it. This means that the seller is not responsible for any claims or liens that existed before they owned the property.
3. Quitclaim Deed
A quitclaim deed is a type of deed that transfers any interest the seller has in the property to the buyer. This type of deed does not provide any guarantees or warranties regarding the title to the property. With a quitclaim deed, the seller is simply transferring any interest they have in the property to the buyer. It’s important to speak with your lawyer and understand all legal aspects of buying a property with a quitclaim deed.
4. Sheriff’s Deed
A sheriff’s deed is a type of deed that is used in cases where a property was foreclosed on. This type of deed transfers ownership of the property from the previous owner to the buyer. Because the property was foreclosed on, there may be outstanding liens or claims against the property, so it’s essential to conduct a thorough title search before purchasing a property with a sheriff’s deed.
5. Trustee’s Deed
A trustee’s deed is a type of deed used in cases where the property is held in a trust. This type of deed transfers ownership of the property from the trustee to the buyer. Because the property is held in a trust, there may be specific requirements or restrictions on the sale of the property, so it’s essential to consult with an attorney before purchasing a property with a trustee’s deed.
6. Tax Deed
A tax deed is a type of deed used in cases where the property was sold to pay outstanding property taxes. This type of deed transfers ownership of the property from the previous owner to the buyer. Because the property was sold to pay outstanding taxes, there may be outstanding liens or claims against the property, so it’s essential to conduct a thorough title search before purchasing a property with a tax deed.
Understanding the different types of deeds is crucial for any real estate transaction in Harford County. Whether you’re a buyer or a seller, it’s important to know which type of deed is being used and what protections it provides. By working with a knowledgeable real estate professional and conducting a thorough title search, you can ensure a smooth and successful real estate transaction. Are you buying or selling a property in Harford County? Reach out to our team today to find out how we can help! 443-616-5486