We often draft property deeds for our clients. These deeds often transfer a piece of property to a trust or family member. But keep in mind that there are several types of deeds that can be utilized for real estate transfers. In this blog, we will discuss the different types of deeds commonly used by Wisconsin residents and the reasons you would use them.
What is a Deed?
A deed is a legal document that transfers title or ownership interest of real property from one party to another.
What Information is Needed for a Deed?
A properly drafted deed will include these four main components:
- The complete legal description of the property
- The name of the party transferring ownership of the property (“transferor” or “grantor”)
- The name of the party receiving the real property (“transferee” or “grantee”)
- And a notarized signature of the transferor or grantee and the name of the party who drafted the deed
Common Types of Deeds for WI Residents:
There are several different types of deeds, which offer different levels of assurance to buyers. The most common types of deeds that we draft are: Warranty Deeds, Special Warranty Deeds, and QuitClaim Deeds.
What is a Warranty Deed?
A Warranty Deed is a legal document that guarantees clear title to a piece of real property. This type of deed ensures that the grantor is the legal owner of the property and has the right to convey the real property. A general warranty deed also ensures there are no liens or encumbrances against the property other than those listed in the deed. This type of deed ensures that the grantor will forever guaranty and defend title to the property against any claims arising during the entire history of the real estate.
A Special Warranty Deed is a legal document that only protects the grantee against title defects arising during the grantor’s ownership of the real property.
What is a Quit Claim Deed?
A Quit Claim Deed (also known as a: quitclaim deed, quick claim deed, or non-warranty deed) offers the least amount of protection. A quit claim deed is a legal document that transfers interest in real property “from the grantor” to the “grantee.” This type of transfer contains no title covenant, meaning there is no guarantee as to the status of title to the real property. Because of the lack of warranty, this type of deed is typically used to transfer interest in property between family members. Other reasons that people many use a quit claim deed include: moving property into a trust, terminating a spouse’s interest after a divorce, or to transfer the property to a business entity.
The types of deeds listed above are just a few property deeds that we commonly use. There are additional special purpose deeds commonly used by the courts that we did not discuss. While you can find several deed templates online, it is highly recommended that you use an attorney to draft the right legal document for your situation.
If you need assistance in deciding which type of property deed is right for you, call one of our Green Bay real estate attorneys today at 920-499-5700, or send us a message below.