When people enter the process of buying a house and transferring its ownership, they must sign a property deed. This deed requires several factors to be considered valid on the legal front. Below is more information about deeds and what you should know.

Necessary Qualifications for a Valid Deed

First, the deed must be physically written or typed and delivered to the person who is buying the property, known as the grantee. The person who is transferring ownership, or the grantor, must be legally capable of selling the property, and the grantee must be legally able to receive it. A witness must also physically identify both parties before signing the deed. Lastly, the grantor must describe the property accurately and include the correct legal language within the document for official approval.

Common Types of Deeds

General Warranty Deed

A general warranty deed communicates the details that go into buying a house. This property deed explains that the grantor owns the title of the property and has had a title company thoroughly check it to be clear of any defects, such as liens or encumbrances.

Grant Deed

A grant deed contains many of the same elements of the general warranty deed, but focuses on ensuring the property does not belong to anyone else and that there are not any hidden defects that the grantor did not disclose.

Quitclaim Deed

A quitclaim deed is standard when someone transfers property interests to a spouse or to prevent any third parties from claiming an interest in the property.

Special or Limited Warranty Deed

Special or limited warranty deeds present the grantor with only the title problems that happen after transferring the property to their hands. It will not include anything from before then. 

Fiduciary Deed

Fiduciary deeds involve those who have the right to look after a property for another, such as a guardian, a trustee, or an executor, among others. This person can sell the property as long as they act in the best interest of the property’s rightful owner.

Gift Deed

When people transfer ownership of a property without the use of money, most commonly with relatives, they will draw up a gift deed.

Deed in Lieu of Foreclosure

To avoid foreclosure, the property’s owner can request a deed in lieu of foreclosure. This involves signing the property over to the lender without paying back any more of the mortgage.  

For over 40 years, buyers and sellers, along with realtors and banks, have trusted Chattanooga Title with their property deeds. It is a full-service title company that will expedite the closing process and let you enjoy this new chapter in your life. If you’re in Hamilton County, TN, or the surrounding area and need title information on buying a house, selling a property, or transferring ownership, visit their website. To make an appointment, call (423) 756-3057.