Table of Contents Hide
- Different Types of Deeds
- What are grant deeds?
- Grant Deed California
- Grant deed form
- Grant Deed vs Deed of Trust
A grant deed is a document that shows that a change of ownership has occurred during a sale. It is “the physical representation of the transfer of ownership. The deed will show the names of the seller and buyer of the property and must have the signature of at least the seller of the property to confirm the transfer of ownership.
Deed typically includes the following informations:
- A description of the real estate involved
- The names of the respective parties
- The signature of the person transferring the real estate
In this article, you will learn everything you need to know about property deeds to ensure you feel comfortable whenever you are doing a property transaction.
Different Types of Deeds
Depending on the nature of the transaction and the history of the property, the deed attesting to the purchase or sale of your home may vary. Here are the most common types of acts:
- Warranty deed.
- Grant deed.
- Quitclaim deed.
- sale deed.
A warranty deed is the most common deed that you will encounter in a standard home sale. “It’s the one that offers the best and the best protection for the buyer,” says Bonner. Title companies use this act in transactions when it can be confirmed that the ownership of the property is free and free from discrepancies, privileges or any other issues. It also shows the buyer that the seller is the correct owner with the right to sell the property.
A grant deed, which can also be called a deed of concession, is still used with title insurance, but it provides a limited warranty of unencumbered property. With the grant deed, the title company is able to confirm that the seller has not experienced any ownership discrepancies or encountered other ownership issues, but the title company is unable to make the same guarantee before the purchase of the property by the seller.
is a simple deed often used when an individual transfers ownership of a piece of property to a person she knows. These deeds can be drawn up by an attorney or even by the seller, and they offer no guarantee that the noted seller holds title of the property.
This type of deed is often used in a foreclosure auction or bank sale of a piece of real estate, and the nature of the deal makes it harder (if not impossible) to guarantee that there are no other claims of ownership.
What are grant deeds?
A deed of ownership is a written and signed legal instrument that is used to transfer ownership of real estate from the previous owner (the settlor) to the new owner (the beneficiary). Historically, real property was transferred through a ceremonial act known as the “livery of referral”. In this act, the person transferring the land handed over a twig or sod from the land to the person taking delivery of the land.
A verbal or written statement often accompanied the gesture, although it was the livery of the seizure that legally transferred title to the property. Today, the title of real estate is conveyed by a done paper.
A person who is competent to enter into a valid contract is considered competent to be a grantor. The licensor and the concessionaire must be identified in such a way as to be verifiable. The property must be adequately described. The transport slogans must be present. All Standard Form Deeds include the necessary legal language that actually transfers ownership.
The deed must be signed by the settlor (s) if the property belongs to more than one person. The deed must be legally delivered to the beneficiary or to a person acting on their behalf. They must be accepted by the beneficiary. Typically, deeds are accepted by the concessionaire, but in certain circumstances, the concessionaire may refuse delivery of the deed. Other types of the grant deed.
Essential components of grant deed
Although each state has its own requirements, most acts must contain several essential elements to be legally valid:
- They must be written. While most deeds are completed on printed forms, there is no legal requirement that a specific form is used as long as the essentials are included.
- The grantor must have the legal capacity to transfer the property and the concessionaire must be able to receive the concession of the property.
- A person who is competent to enter into a valid contract is considered competent to be a grantor. The licensor and the concessionaire must be identified in such a way as to be verifiable.
- The property must be adequately described. The transport slogans must be present. All Standard Form Deeds include the necessary legal language that actually transfers ownership.
- The deed must be signed by the settlor (s) if the property belongs to more than one person. The deed must be legally delivered to the beneficiary or to a person acting on their behalf.
- They must be accepted by the beneficiary. Typically, deeds are accepted by the concessionaire, but in certain circumstances, the concessionaire may refuse delivery of the deed.
Grant Deed California
California law allows for the use of three different types of deeds to transfer title to real estate. A grant deed is the intermediate level deed because it includes more guarantees of a title than a quitclaim deed but fewer guarantees than a warranty deed.
Grant deed form
To be legally effective, a deed of concession must include certain basic information, including the name of the new owner, the signature of the person passing the title, and a legal description of the property conveyed by the deed.
How to write a grant form
You can use a free online template to create your grant document or write your own from scratch. In either case, it’s a good idea to seek legal advice from a lawyer who can make sure the document is valid.
Each grant act must include the following information:
- Name of grantor Name and address of the beneficiary
- Description of the beneficiary (e.g. single man, husband and wife, roommates)
- A person who requested the deed of concession
- Address of the property being transferred
- The legal description of the property (lot number)
- Original title number for the property tax identification number or expert’s plot number (APN)
- Tax-exempt status
A grant deed should be filed with your county assessor’s office.
Grant Deed vs Deed of Trust
A grant deed and a deed of trust are legal document that may sound similar, but are not in any way the same.
A grant deed is used to transfer real estate ownership from one person to another. The transfer of ownership can relate to a complete piece of real estate or only part of the real estate. Deeds of concession are most often used in real estate sales between an independent buyer and seller.
A grant deed can also be used to transfer ownership as a gift. When a deed of concession is used, the person transferring the property rights promises the person receiving the property rights that these rights have not previously been transferred to someone else.
A trust deed
A trust deed is used in a tripartite transaction involving the repayment of a debt. The first part is a real estate owner or buyer who borrows money that can be used for any purpose. To guarantee the repayment of the loan, the borrower signs a trust deed that transfers legal ownership of his real estate to a third party.
Different between grant deed and deed of trust
So what is the difference between a grant deed (deed of concession) and a deed of trust? A grant deed is a legal instrument that is created to transfer the ownership of real estate from the grantor to the beneficiary. It is given to a real estate buyer by the seller as an assurance that the property in question is not owned by anyone else, free from hidden liabilities and in an agreed condition.
While a trust deed, on the other hand, is used in several states to secure real estate property presented as security for a loan. It legally transfers title to the property to a trustee (lender) until the borrower (trustee) repays the loan in full.
Grant Deeds vs Quitclaim Deeds
A is the most preferable deed for a buyer. Grant deeds transfer the property with a guarantee that the buyer will not be responsible for any unknown ownership claims that may be brought in the future. Rather, the seller will be responsible in the event a claim is made to the property.
However, a quitclaim deed does not contain any guarantee against future ownership claims. It only conveys the interest that the seller has, as is, regardless of unknown ownership claims. A quitclaim deed makes it clear to the buyer that the seller makes no claims about the marketable title. We see quitclaim deeds used when the property is being transferred from two joint owners to one.
Grant Deed vs Warranty Deed
The deed describes a legal document that proves a real estate transfer. Deeds of warranty and concession contain different levels of guarantee by the seller, promising different levels of legal protection to the buyer. If the seller then breaches one of these commitments, the concessionaire can sue the grantor.
The transfer of a title deed is made by an authentic instrument. Certain essential elements must be contained in the act for it to be legally operational. Different acts offer different levels of protection to the beneficiary and the obligations of a grantor are determined by the form of the act. Since deeds are important legal documents that affect interests and property rights, a qualified real estate lawyer should be consulted for any transaction involving them, such as closing a home purchase.