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 Friend
If 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 Parties
Now 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.
Author Resource:-
Allan Cole has been drawing up reliable real estate contracts for property professionals since 1998. For your sample property deeds and other free real estate forms, visit http://www.free-real-estate-forms.com/ today.
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