Real Estate Transfers Part 1 – Transfer Instruments

Deeds are used to convey real estate from one owner to another. There are three types of deeds which are commonly used in Florida to convey title of residential real estate:

The first and most desirable type of deed is called the (General) Warranty Deed. Here, the transferor warrants that he has the right to convey the property, that the title being conveyed is valid and that there are no encumbrances on the property other than those that have been disclosed. The deed also warrants that recipient will have paramount title to the real estate and that the transferor will protect the recipient from any claims made by anyone in the prior chain of title who may challenge the recipient’s title to the property

The second type of deed is a “Special Warranty Deed.” It is similar to the Warranty Deed in that the transferor usually provides the same guarantees. However, the warranties are usually restricted to claims against the property that arose after the transferor obtained title to the real estate while giving no assurance regarding prior title history. These types of deeds are commonly found in bank owned foreclosure properties.

The last and least desirable deed is a “Quit-Claim Deed.” Here the Transferor gives no assurances whatsoever as to the ownership or interest the seller is transferring. The Transferor merely gives up whatever claim he may have in the real estate. If the claim is legitimate and for full ownership (“fee simple”) then the new owner receives full ownership. If the seller has no interest in the property then the new owner also has no claim against the property.

Thus, it is very important to insist on a General Warranty Deed for any Real Estate Transfers, whenever possible, and to perform thorough title searches in case such is not provided.


Disclaimer: This article is for general information only and is not intended as legal advice.