Sunday, January 30, 2011

Dirty Deeds

I'm now on the lookout for USA land but the deeds are confusing. Here's what I've found out:

Warranty Deed - this is really the only type of deed I'm interested in, as a buyer. A warranty deed ensures that the person who's selling the property is the actual owner, that the title is fee of encumbrances and that the seller will defend the title, if someone comes along years later, after the sale, claiming that they had rights on the property.

Special Warranty Deed - this is similar, but only has a limited guarantee - the seller guarantees the time-frame that he/she owned the property. Be careful here - remember, some places are being 'flipped' in a very short time frame. A special warranty deed could prove to be fairly worthless if the seller bought the property as a Quit Claim Deed two weeks ago.

Quit Claim Deed - this is the dirtiest deed of all. No warranties - not even one that the seller has any rights to sell the property. TREAD VERY CAREFULLY!!!!

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