Warranty Deed vs. Quit Claim Deed

When you're in the process of selling (orseldom stand alone as these documents are
purchasing) a house, you will most likely,usually backed up by a title insurance policy.
encounter several kinds of documents: all withA quitclaim deed, on the other hand, is presented
different names and with different uses andto a buyer by someone who does not necessarily
functions. Two of the most misunderstoodown the property being sold, but holds
documents are the warranty deed and the quitresponsibility for it. This occurs due to several
claim deed. Many think that these two forms arereasons such as when the owner dies and
alike, but they are not.bequeaths the property to one of his heirs, or
A warranty deed is a document which the sellerwhen there is a marriage and the owner wants to
presents to you and is used in majority of allinclude the name of his/her spouse to the title
sales transactions. The warranty deed simply(among others). A quitclaim deed offers a lower
states that the seller owns the property beinglevel of protection to buyers. This kind of
sold and that it is free from any sort of liens. Bydocument is used primarily when the property in
presenting a warranty deed, the buyer is assuredquestion will just stay within a family.
that the holder of the title has the legal right toIncidentally, there are times when both a
transfer ownership of the unit and is assured thatwarranty deed and a quitclaim deed are
no one (financial institution or other creditors)presented to a potential buyer. An example is
would come after him to make a claim on thewhen the property lies on the border of rivers
property. In the eventuality that someone doesand or lakes; where ownership of the underwater
lays claim to the property that has just beenland on which his property stands on remains
purchased (or that the claims stated in theunclear.
warranty is erroneous), the buyer is furtherIf you are unsure which kind of deed works best
protected by law, and would be entitled tofor your property, consult a real estate agent or
receive a form of compensation. Warranty deedsa real estate lawyer.