When you buy or sell a home, a crucial piece of paper makes it official: the property deed. It’s more than a formality — it’s the legal document that transfers property ownership and defines who truly holds title to the property. Yet not all deeds are the same. Understanding the types of property deeds can protect you from future disputes, unclear ownership, or costly surprises when issues arise.
This guide walks through the common types of deeds, when to use them, and how each impacts your rights in real estate transactions.
What Is a Property Deed?
A property deed is a written, signed, and recorded legal document that transfers real property from one party (the grantor) to another (the grantee). It’s different from a title, which represents ownership rights. The deed transfers property ownership; the title proves you own it.
Every deed must contain certain elements to be valid — the names of both parties, a property description, and clear wording that confirms ownership is being transferred. Deeds are recorded in the county where the property is located to create a public record of ownership.
Why Deed Type Matters
Different deeds offer different levels of protection. The type you use affects how much liability the seller carries and how secure the buyer’s ownership is. Choosing the right one depends on the transaction — from selling a house to transferring property to a family member or managing estate planning.
The Most Common Types of Property Deeds
Below are the common types of deeds used in real estate transactions, from the most protective to the most limited.
1. General Warranty Deed
A general warranty deed provides the highest level of protection for the buyer. The seller guarantees they hold clear ownership and have the legal right to sell the property. It also ensures that no undisclosed claims, liens, or encumbrances exist — not just during the seller’s ownership, but throughout the property’s entire history.
If issues arise after closing, the buyer can hold the seller legally responsible. This type of deed is standard in most commercial real estate and residential transactions where title assurance is critical.
Pro Tip: Even with a warranty deed, buyers should still obtain title insurance to protect against hidden defects that the seller might not know about.
2. Special Warranty Deed
A special warranty deed (also known as a limited warranty deed) offers partial protection. Here, the seller only guarantees that they haven’t caused title problems during their ownership. Any issues that existed before they acquired the property aren’t covered.
This type is often used in commercial real estate deals, bank-owned properties, or when a business entity is transferring ownership.
3. Grant Deed
A grant deed confirms that the seller owns the property and hasn’t already sold it to someone else. It also guarantees that there are no undisclosed encumbrances during the seller’s ownership. However, it doesn’t cover the entire ownership history like a warranty deed does.
Grant deeds are common in states such as California and are often used in standard real estate transactions where the buyer is obtaining financing.
4. Quitclaim Deed
A quitclaim deed transfers whatever interest the grantor has in the property — but with no guarantees at all. If the grantor doesn’t actually own the property, the grantee gets nothing. This type of deed is usually used to transfer property between family members, add or remove a spouse from ownership, or resolve estate planning matters.
Because it provides no warranties, a quitclaim deed is rarely used in property sales.
5. Bargain and Sale Deed
A bargain and sale deed implies that the seller holds ownership but doesn’t guarantee the title is free of liens or claims. This type is commonly used by executors, trustees, or public officials transferring property they manage rather than personally own.
Deed of Trust: A Different Kind of Deed
While not technically a property deed, a deed of trust often appears in mortgage financing. Instead of transferring ownership, it secures a loan with the property as collateral. It involves three parties — the borrower, the lender, and a neutral trustee — and is recorded just like other deeds.
Deeds of trust are most common in states that don’t use traditional mortgages, such as California and Texas.
Choosing the Right Deed Type
Selecting the right deed depends on the goal of the transaction:
- Buying or selling a home: Use a general warranty deed for full protection.
- Refinancing or loan security: Expect a deed of trust.
- Gifting to a family member or transferring between spouses: A quitclaim deed is quick and simple.
- Transferring commercial real estate: A special warranty deed or bargain and sale deed is typical.
If you’re unsure, consult a real estate attorney or title company. They can review local laws and ensure your deed provides the right level of protection.
Deeds and Title Insurance: Double Protection
Even with the best deed, buyers should obtain title insurance to protect their ownership rights. While a deed defines what’s being transferred, title insurance shields against hidden issues — such as old liens, errors in public records, or undiscovered heirs. Together, they form a complete layer of legal protection in any property transaction.
Final Thoughts
Deeds are the backbone of real estate transactions, defining who owns what and under what conditions. Whether you’re selling a house, transferring property to a family member, or handling estate planning, knowing the difference between warranty deeds, quitclaim deeds, and grant deeds helps you make confident, informed decisions.
By understanding the types of property deeds — and securing title insurance to protect your ownership — you can ensure every property transfer is safe, transparent, and legally sound.
If you are holding a deed of trust and want to sell it, contact Amerinote Xchange for the best pricing.
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