How to Draft a Warranty Deed or Quit Claim Deed

Full Blog Post: https://retipster.com/how-to-close-ca...
USlegal Deed Library: https://retipster.com/go/deeds/yt-l1j...
Rocket Lawyer Warranty Deed: https://retipster.com/go/rl-warrantyd...
Rocket Lawyer Quit Claim Deed: https://retipster.com/go/rl-quitclaim...

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A deed is probably the most fundamental document in a real estate transaction. It's essentially the final step that solidifies any real estate transaction, transferring a property from one person or entity to another. When all is said and done - the ultimate definition of who owns property all comes down to what's written in the DEED.

This single document is the item that almost everything else in a real estate transaction revolves around. It's the final document that sets each transaction in stone. This is the document that:

- Entitles an owner to their property.
- Conveys property rights from one person to another.
- Defines and upholds one's ownership in a piece of real estate by its local governing body.

When a real estate transaction is closed, this document will be signed and notarized by the seller and then recorded at the county's "Register of Deeds" (aka - "County Recorder") office. When this document is recorded at the county, the transaction is considered complete, and the property will be officially titled in the new owner's name.

A few different types of deeds can be used to transfer a piece of real estate. The two most common deeds that you're likely to see are the Warranty Deed and the Quit Claim Deed - and these two documents have some very important differences you need to know about.

With a Warranty Deed, the seller is giving the buyer their "Warranty" (i.e. -- Guarantee) that the title to the property is free and clear (with any specific title issues noted), and the buyer will receive all reasonable rights to the property. This deed should only be used when the buyer knows that the title to the property is clear of any liens and encumbrances. Most educated buyers won't accept anything less than this (and if a lender gets involved - it will be required).

Most sellers are okay with signing a Warranty Deed because:

This was what they received when they bought the property.
They paid for a title insurance policy when they bought the property, which protects them from any issues (should they arise).
If you're unsure whether the title is clear, don't use this deed when selling a property.

With a Quit Claim Deed, the seller is offering no warranty of any kind regarding the title on the property. By signing this document, the seller simply says, "Whatever interest I may have in this property (even if it's nothing), I am transferring it to the buyer."

A Quit Claim Deed provides no guarantees or promises about whether the title is clear - so if a buyer is willing to accept this, they should be doing their homework to ensure that they know what they're getting.

Note: In my experience, most buyers have no idea what the difference is between these two types of deeds and what implications come with each -- but as an educated investor, this is a distinction that you definitely need to be aware of. #rocketlawyer #realestate #retipster #sellerfinancing #ownerfinancing #realestateinvesting

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