A property deed contains the names of the former and new owners, a legal description of the property being sold, and the signature of the person transferring the deed, Nolo says. Real estate cannot be transferred without a legal written document, which is usually a property deed.Continue Reading
There are a few different types of property deeds, Nolo says. A quitclaim deed transfers only the person's interest in the property; it does not make any guarantees about the extent of that person's interest. Divorced couples generally use quitclaim deeds. Quitclaim deeds are sometimes used when there's a cloud on the title, meaning someone may have claim to the property.
A warranty deed transfers ownership and provides an explicit promise to the buyer that the person transferring the title has good title and that it's free of claims of ownership or liens. The transferor guarantees that if those claims turn out to be wrong, the transferor will compensate the buyer, Nolo says.
A grant deed transfers ownership and makes certain implied promises, such as the title hasn't been already transferred to another individual or been encumbered, except as outlined in the deed. Other types of deeds include an executor's deed, which is the deed used to transfer property that is part of an individual's estate, Legal Zoom says. The executor of the deceased's owners estate is legally authorized to make the transfer.Learn more about Finding a Home