5 Types of Property Deeds When You Buy Land | What You Need to Know

If you’re in the market to buy a piece of property, you’ll want to make sure you understand what a property deed is and what it looks like.

Deeds are legal documents used in real estate transactions that transfer the title of real property from a grantor, the seller, to a grantee, you, the buyer! Real property is land and anything like buildings or roads attached to it.

It contains essential information about the property, such as the owner’s name, the property’s legal description, and any restrictions on its use.

If you can, get a copy of the current deed. Knowing what to look for in a property deed can help you make an informed purchase decision.

Let’s dig in!

Property Deed vs. Property Title

Real estate jargon may feel overwhelming when you want to purchase property and start doing your due diligence—words like a chain of title, liens, back taxes, encumbrances, and notarizing deeds. And there’s more than one deed type?

What does this all mean? And why do you need to understand it?

Property Title

Property titles are legal documents that prove ownership of a property. Owning the title to property means owning the legal rights to it. When buying undeveloped land, you want to ensure it has a clean chain of title.

At E24 Land, we guarantee this, but what is it? It means that you can go back to the original transfer of title to the present day, and you will find no gaps in time where an owner was unknown.

You can do this as part of your due diligence or hire a title company to do it for you.

Now, if a property title transfers the ownership of a piece of land (what we sell) to another owner, what in the world is a property deed?

We are happy you asked! 😊

Property Deed

Property deeds are legal documents that transfer the ownership of land. A deed and title cannot exist independent of one another.

The Statute of Frauds states that a deed must be written on paper and signed by all parties involved. This protects all parties and assets as supporting evidence if ever presented in a court.

Deeds in real estate transactions transfer title and ownership from the grantor/seller to the grantee/buyer. Once signed and notarized, it is necessary to record it in the county’s clerk of records office for proof of ownership.

You can either do this in person or online. You will need to contact your county to determine which is required.

Types of Property Deeds

Warranty Deed

First, the most common type of deed used in real estate transactions is a warranty deed. This is the best of the best as it provides buyers the ultimate protection!

It comes with warranties from the seller that the property is free from any liens or encumbrances and that the seller has clear title to the property.

The seller also agrees to defend the title to the property if any challenges arise for life.

This is the only warranty we provide here at E24 Land. We want you to know that you’re legally protected and that the title is free, clear, and GUARANTEED!

Special Warranty Property Deed

Next is a special warranty deed. This deed that comes with limited warranties from the seller. The seller only guarantees that they have a clear title to the property and that there are no liens or encumbrances during their ownership.

This means that no protection is offered to the seller to help protect the title to the property if any challenges come up that are not during this time frame.

This one is most often used in commercial property sales.

Quitclaim Deed

The third is the quitclaim deed—a deed that does not come with warranties from the seller. The seller only transfers whatever interest they have in the property to the buyer. This typically occurs between those that know one another. They are not making any guarantees about the title to the property or that there are no liens or encumbrances on it.

The buyer is legally responsible for any issues arising from outstanding liens or debts. We do not recommend this unless you know and trust the seller well.

Bargain and Sale Deed

Fourth, a bargain and sale deed is a type of deed that is often used in foreclosure sales. We say avoid this one at all costs when buying land. The title to the property is transferred from the seller to the buyer, but the seller is not responsible for any problems with the property. The buyer takes the property “as is” and assumes all associated risks.

In short, this deed type transfers the right to the buyer to sell the property in the future but doesn’t necessarily transfer the property’s title.

Grant Deed

Lastly, a grant deed transfers real property ownership from one person to another. The grant deed contains language that states the grantor (seller) is transferring the property to the grantee (buyer) “as is.” This means that the buyer accepts the property as-is without warranties or guarantees from the seller.

The grant deed is a common document used in real estate transactions and is typically prepared by an attorney or real estate professional. Unlike a quitclaim deed, the buyer and seller typically do not know one another.

What is the Best Property Deed for Buying Land?

Hands down, the best type of deed for the buyer is a warranty deed because it comes with the strongest warranties from the seller. You want to maintain as low risk as possible in any transaction like real estate where a lot is at stake.

The other deed types offer less protection for the buyer, and you as the buyer could be legally responsible for outstanding liens and encumbrances from the past or future. You do not want this to happen!

In Conclusion…

A property title and deed go hand in hand.  The deed is the vehicle by which a property title is transferred. And a property title proves legal ownership. The various deeds provide different levels of protection to the buyer, and each determines the seller’s responsibility.

We highly recommend using only a warranty deed to sign on the dotted line when purchasing land. Your ownership interests and rights depend on it!

If you still have further questions, please contact us at (636) 695-8800! We’re happy to help!

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