A deed is simply documented proof of your property ownership. Let’s discuss three common types: warranty deed, quit claim deed, and a tax deed.
A warranty deed is the most common type, and it’s the best one to have in my opinion. It guarantees good title going back to the beginning of time. The seller warrants a clean and unbroken chain of title to you, the buyer.
A quit claim deed is also common. It transfers ownership from the seller to buyer, but the seller provides no guarantee to the property title. This is why you typically see quit claim deeds used when transferring property between family members or related businesses.
A tax deed, also known as a treasurer’s deed or a sheriff’s deed, is a deed granted by the government to a buyer who won a tax deed auction. This is for a property where the previous owner failed to pay their property taxes. The government doesn’t guarantee a clean title with these sales, and you’ll need to file a quiet title action to get a clear title. More on that in a future article.
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