Property deeds can often be a mind-boggling affair for the first time
real estate buyer or seller. General warranty, special warranty, bargain
and sale... how do you tell them apart? Which one will be perfect for
you? Read on for the full answers in plain English.To begin with, all
three property deed forms do a fine job of transferring property
ownership from the seller to the buyer. The biting difference here is who
(buyer or seller) will be doling out cold, hard cash if something goes
wrong with the property title.General Warranty Deed: The Property Buyer's
Best FriendIf you are buying real estate, then a general warranty deed
will be your best buddy. By signing this deed, your seller is essentially
promising you that he or she is transferring you a good and clear
property title... or else he or she will be the one forking out the cash
to settle any nasty debts and liens against the title. And this promise
extends all the way back to the property's entire history (not just
during the seller's ownership), so it's your golden ticket for a complete
peace of mind.Special Warranty Deed: A Balanced Deed for Both PartiesNow
you are reading this through the eyes of a property seller, then you may
want to turn to something a bit more in your favor. A special warranty
deed tries to strike a fair balance between the interest of both parties
- Once again the seller promises the buyer that the property title is
free and clear from nasty surprises, but this time the promise only
applies to the duration of his or her ownership. In other words, the
buyer will be the one sweeping up the mess... if there are property title
problems raked up by earlier owners.Bargain and Sale Deed: Transferring a
Property Title "As-Is"If you have been following this article closely,
you would have probably guessed that the next one will be the seller's
favorite... and you would have been right. Out of all three real estate
deeds, a bargain and sale deed grants the seller the most protection and
least responsibility. Once a bargain and sale deed is inked, the seller
basically washes his or her hands off the entire matter. Something's
wrong with the property title? Oops too bad... that's your problem,
buyer. So it's hardly a surprise that this property deed pops up most
often in tax sales and foreclosed properties.Attention buyers: No matter
which type of property deeds you go for, it's often worth your time and
money to run a property title check... just to avoid any nasty surprises
later down the road. On top of that, be sure to use deeds with the
correct legal wordings and customize them for your local laws if needed.