In real estate transactions, deeds are the legal document used to transfer ownership of real property from one party (the grantor) to another (the grantee). Within Florida real estate, deeds hold significant importance as they officially transfer ownership rights and interests in the property as well as associated land and any other involved structures. The transfer occurs upon delivery of the deed.
Commonly Used Deeds in Florida
The most commonly utilized deeds are known as the General Warranty Deed, Special Warranty Deed and Quit Claim Deed.
General Warranty Deed
This is the most comprehensive and protective deed available. It provides a warranty that the grantor has a clear, marketable title to the property and provides the highest level of protection for the grantee. With this deed, the grantor warrants against any defects in title that might have occurred at any point in the property’s history, even prior to the grantor’s ownership. If any title issues arise, the grantor is legally responsible for addressing them.
Special Warranty Deed
This type of deed presents a more limited warranty. The grantor only warrants against defects in title that occurred during the grantor’s ownership period. Any issues that occurred before the grantor’s ownership are not within the grantor’s obligation to address or warranty.
Quit Claim Deed
A Quit Claim deed offers the least amount of protection to the grantee and is typically not accepted by title insurers who may be insuring the transaction. While the Quit Claim deed succeeds in the transfer of the interest the grantor has or is understood to have in the property, it does not expressly state that the grantor has a clear title.
Less Commonly Used Deeds in Florida
There are less commonly used deeds and a few are briefly described as follows:
Trustee’s Deed
When a property is held in a trust, a trustee’s deed is used to transfer the property from the trustee of the trust to the grantee. The trustee manages the property on behalf of the trust’s beneficiaries and authorizes and signs this type of deed. These deeds generally have a limitation on warranties similar to the Special Warranty Deed.
Personal Representative’s Deed
When a property is part of a deceased person’s estate, the executor/ personal representative of the estate authorizes this deed to transfer property to the designated beneficiaries. Often times it is referred to as a Personal Representative’s Distributive Deed.
Guardian’s Deed
When a legal guardian wants to transfer property owned by a minor or an incapacitated person, a guardian’s deed is used to facilitate the transaction.
When considering the type of deed to either convey or accept in a real estate transaction, it is important for the parties to any real estate transaction to understand the level of protection provided and the potential risks associated with each type. Further, it is important to understand whether a title insurance company is able to insure the deed. If you are buying, selling, or investing in real estate, choose a real estate attorney you can trust. Contact us today.