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Phone: 239.540.7007
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Title Insurance
Understanding the different types of deeds is essential, as it’s a critical aspect of real estate transactions. Keep reading to learn about different types of deeds from Stewart: Schutt Law in Fort Myers.
A deed is a legal document that transfers the ownership of a property from the seller to the buyer. However, not all deeds are created equal. Depending on the type of deed used, the seller may provide varying degrees of protection to the buyer. In this post, we'll explore the different types of deeds that buyers and sellers may encounter during a real estate transaction, including warranty deeds, quitclaim deeds, and special warranty deeds.
A deed is a legal document that transfers the ownership of a property from the seller to the buyer. However, not all deeds are created equal. Depending on the type of deed used, the seller may provide varying degrees of protection to the buyer. In this post, we'll explore the different types of deeds that buyers and sellers may encounter during a real estate transaction, including warranty deeds, quitclaim deeds, and special warranty deeds.
Don't leave your real estate transactions to chance. Call Schutt Law in Fort Myers at (239) 540-7007 to learn more about title insurance and ensure a smooth real estate closing process.
Warranty Deeds
A warranty deed is commonly used in real estate transactions. It guarantees that the seller owns the property and has the legal right to sell it. As such, this warranty protects the buyer against any claims that may arise in the future against the property. In other words, if any legal issues arise after the sale, the seller is responsible for resolving them. Warranty deeds can be further classified into general and special warranty deeds. General warranty deeds provide the most comprehensive protection to buyers because they warrant that the property is free of defects, even if they existed before the seller acquired the property. On the other hand, special warranty deeds only warrant that the seller has not caused any defects during their ownership of the property.Quitclaim Deeds
A quitclaim deed is a type of deed that transfers whatever interest a seller may have in a property to the buyer. This type of deed is often used in situations where the seller needs clarification about the extent of their interest in the property or when the seller wants to transfer any potential claims or rights they may have to the buyer. Quitclaim deeds provide the buyer the least protection because the seller does not provide any warranty or guarantee about their ownership of the property. Essentially, the seller is simply "quitting" their claim to the property, and the buyer is taking over whatever interest the seller has. While quitclaim deeds provide little protection to buyers, they can still be helpful in some situations. For example, suppose a family member is transferring ownership of a property to another family member. In that case, a quitclaim deed may be used because the parties involved trust each other and do not need the protection a warranty deed would provide.Protect your investment and avoid future legal troubles with the help of Schutt Law in Fort Myers. Call (239) 540-7007 to speak with their team and learn more about title insurance and other real estate-related services.
Special Warranty Deeds
Special warranty deeds are similar to general warranty deeds, but they only warrant against defects that occurred during the seller's ownership of the property. This means that if any issues arise before the seller owns the property, the buyer is not protected. Special warranty deeds are often used in commercial real estate transactions. The seller may have less information about the property's history, or the buyer may be willing to accept a lower level of protection in exchange for a lower price.Final Thoughts
When it comes to real estate transactions, it's essential to understand the different types of deeds that may be involved. Each type of deed offers varying degrees of protection to buyers, and it's necessary to understand what kind of protection you are getting. It's also important to note that some states may have different rules and regulations surrounding using certain types of deeds, so it's essential to consult with a real estate attorney or other qualified professionals when navigating these issues.In Summary
In conclusion, a warranty deed is commonly used in real estate transactions because it provides buyers with the maximum level of protection. However, quitclaim deeds and special warranty deeds may also be used when the parties involved have a level of trust or are willing to accept a lower level of protection in exchange for other benefits. It's crucial for buyers and sellers to understand the type of deed being used in their transaction and to consult with qualified professionals when navigating any legal issues that may arise.Whether buying or selling a property, having a reliable title insurance provider on your side is essential. Call Schutt Law in Fort Myers at (239) 540-7007 for expert advice and guidance on all your real estate needs.
WHY TITLE INSURANCE?
Owning real estate is one of the most precious values of freedom in this country. You want the assurance that the property you are buying will be yours. Other than your mortgage holder, no one else should have any claims or restrictions against your home.
Title insurance is issued after a careful examination of the public records. But even the most thorough search cannot absolutely assure that no title faults are present, despite the knowledge and experience of professional title examiners. In addition to matters shown by public records, other title problems may exist that cannot be disclosed in a search. Title insurance eliminates any risks and losses caused by faults in title from an event that occurred before you owned the property.
Title insurance is different from other types of insurance in that it protects you, the insured, from a loss that may occur from matters or faults from the past. Other types of insurance such as auto, life, or health cover you against losses that may occur in the future. Title insurance does not protect against any future faults, but does protect you from risks or undiscovered interests. Another difference is that you pay a one-time premium for a policy that remains effective until the property is sold to a new owner - even if that doesn't occur for decades.
What is a Lender's Policy?
A lender's policy, also known as a loan policy or a mortgage policy, protects the lender against loss due to unknown title defects. It also protects the lender's interest from certain matters which may exist, but may not be known at the time of the sale.
This policy only protects the lender's interest. It does not protect the purchaser. That is why a real estate purchaser needs an owner's policy.
What is an owner's policy?
An owner's policy protects you, the purchaser, against a loss that may occur from a fault in the ownership or interest you have in the property. You should protect the equity in your new home with a title policy.
What does an owner's policy provide?
- Protection from financial loss due to demands that may be charged against the title to your home, up to the cost of the title policy.
- Payment of legal costs if the title insurer has to defend your title against a covered claim.
- Payment of successful claims against the title to your home covered by the policy, up to the cost of the policy.
Why the seller needs to provide title insurance?
Any purchaser will need evidence that his investment in your property is free of title defects. The title insurance policy that you provide the purchaser is a guarantee that you are selling a clear title to your real estate, unencumbered by any legal attachments that might limit or jeopardize ownership. It will reassure your purchaser that he or she is protected from any risks or losses and could help you close your deal.
Why the buyer needs title insurance?
Without title insurance, you may not be fully protected against errors in public records, hidden defects not disclosed by the public records, or mistakes in examination of the title. As a result, you may be held fully accountable for any prior liens, judgments or claims brought against your new property. If this should occur, your title policy insures that you will be defended at no cost against all covered claims up to the amount of the policy.
How much does title insurance cost?
The insurance commission approves and controls the premiums for title insurance policies. The premiums are paid only once and the cost depends upon the purchase price of the property and the policy amount must be equal to the purchase price.
What does title insurance protect from?
- Fraud
- Adverse possession
- Rights of divorced parties
- Deeds by minors
- Undisclosed Heirs
- Errors in tax records
- False affidavits of death or heirship
- Probate matters
- Deeds and wills by persons of unsound mind
- Conveyances by undisclosed divorced spouses
- Forfeitures of real property due to criminal acts
- Deeds by persons falsely representing their marital status
- Documents executed by a revoked or expired Power of Attorney
- Defective acknowledgements due to improper or expired notarization
- Mistakes and omissions resulting in improper abstracting
- Forged deeds, mortgages, wills, releases and other documents
- False impersonation of the true land owner
12601 New Brittany Blvd
Fort Myers, FL 33907
Phone: 239.540.7007
Fax: 239.791.1080
