A deed is a legal instrument that conveys an interest in real property from one party to another. As there are a few different types of deeds that are commonly used in New York State, it is important to note the differences between them. Some of the most common types of property deeds are:
1) Warranty Deed a/k/a “bargain and sale deed” – This is the most common form of deed and is generally used in real estate purchase and sale transactions. A Warranty Deed is the most desirable type of deed for a grantee because by signing such deed, the grantor promises that it owns clear title to the premises and conveys it as such.
2) Quitclaim Deed – This is the most common form of deed used in non-sale scenarios and is mainly used when transferring real property between spouses or other related parties. A Quitclaim Deed is signed by the grantor without any guaranty that the title is clean and marketable.
3) Executor’s or Administrator’s Deed – This is a special type of deed that is prepared for the conveyance of real property by the executor or administrator of an estate. This type of deed affords the grantee the same protections as a Warranty Deed and is typically used in scenarios where the estate needs to convey property to a beneficiary or heir of the estate.
As each real estate transaction presents its own set of facts and challenges, it is important to the difference between these deeds and to be able to determine when it is appropriate to use each one.