General warranty deeds are useful for quickly and easily transferring title to real estate to a new owner. As opposed to quit claim deeds, which make no warranties, general warranty deeds make warranties to the buyer as to the status of the property title. Review the following instructions for additional help completing your deed.
Remember, the grantor is the party that owns the property and is selling or transferring title to the grantee. Grantors and grantees may be either individuals or business entities.
The general rule when answering these questions is to add one grantor for each current property owner that will be transferring title or otherwise changing his or her ownership interest; for instance, by adding a family member to share title. Note that if a grantor wants to remain an owner of the property and simply wishes to add additional owners on the title, then that grantor should be included as a grantee as well.
For example, if a married couple wishes to add their daughter as an owner, then each spouse would be named as a grantor and all three individuals will be named as grantees.
You will need to specify whether each grantor and grantee is a married individual, a non-married individual, a trustee, or a business.
If a party is receiving the property as a trustee, then the trustee should be named as the grantee, not the trust itself. The deed will state that the trustee is receiving the property on behalf of the trust. If there are multiple co-trustees, you may list the name of any one of the trustees. If a business is receiving the property, then you will name the business as the grantee and enter the name of the agent who will sign on behalf of the business. The agent should be someone with proper authority to sign binding contracts on the behalf of the business, such as an owner, executive, or manager.
You will be asked whether the grantee or grantees are receiving title as sole owners or co-owners. You should select "Sole owner" only if no other person will share ownership with the grantee after the deed is signed. Select "Co-owner" if more than one person or business will share ownership of the property with the grantee after the deed is signed. This would be the case, for example, if the grantor is a tenant in common and is transferring his or her interest to the grantee. The other tenants in common would not necessarily join in the deed as grantors, since only the grantor is changing his or her interest.
Here you should indicate what type of joint property interest the grantees are receiving. Depending on your state, you can choose between a tenancy in common, a joint tenancy, a tenancy by the entirety or community property interest, and a partnership.
A tenancy in common is a joint property interest in which each tenant (property owner) owns an undivided share in the whole property. Each tenant may transfer his or her interest without the need for the other tenants to join in the deed. When a tenant dies, his or her share passes according to their will or under state intestacy law when no will exists. Multiple businesses sharing ownership often choose to own as tenants in common due to the simplicity and flexibility of these ownership interests.
A joint tenancy is the same but with a few important differences. First, each tenant owns an equal interest. So if there are four joint tenants, then each tenant has a 1/4 ownership interest in the property. Also, a joint tenant may not sell or transfer his or her interest without the consent of the other tenants. This means that all joint tenants must sign as grantors when transferring or changing ownership and must sign together as grantees when receiving ownership. Lastly, each tenant has the right of survivorship, so when a joint tenant dies, his or her interest automatically passes to the other joint tenants in equal shares.
Tenancy by the entirety and community property interests are basically identical in nature and only differ in name. They are both similar to a joint tenancy but are for married couples. The same rules apply, including right of survivorship.
If California businesses are sharing ownership, then they can consider choosing a partnership interest, which is similar to a tenancy in common but may offer certain advantages under state law.
Every deed should be recorded with the appropriate local office, usually called the County Recorder's Office or County Clerk's Office. As every county has its own specific filing requirements, we recommend contacting your local office to see if it requires any supplemental forms, whether or not it has any special requirements, and also if you need help writing a proper legal description.
In most states, your general warranty deed will be considered effective and executed once it has been both signed by the grantor and also delivered and accepted by the grantee. Note: the grantee normally does not need to sign; however, in a few counties across the nation, the grantee is also required to sign—especially in parts of Kentucky. Be sure to ask your local office if you think this might apply to you, or you can simply have the grantee sign it below the grantor's signature just to be safe.
Although recording is not always required, it is highly recommended that you do record as soon as possible. This will protect you from any potential adverse claims to your title by other parties. Every person listed in the deed should receive a copy of the deed and the original should be recorded. Typically, the County Recorder's Office returns the original deed back to the grantee who in turn provides a copy to the grantor.
A general warranty deed is a type of property deed used to transfer ownership of real estate to one or more new owners. Unlike a quit claim deed, which makes no title warranties, a general warranty deed guarantees that the seller is the rightful owner of the property and is selling it free of any liens or defects (unless explicitly stated in the deed).
A real estate encumbrance is a claim against real estate that diminishes its value. Examples include liens, encroachments, easements, and deed restrictions.
A deed is a legal document used to evidence the transfer of real estate from one individual to another. The person who is conveying the property is known as the grantor, whereas the person receiving the property is called the grantee.
In general, there are three types of deeds:
A lien is a type of security interest in real estate that gives the lien holder a right to repayment of a debt or performance of some other obligation. It is considered a "nonpossessory" interest in real estate in that the lien holder does not physically possess the property.
A common example of a lien is a real estate mortgage. Here, the borrower pledges the property as collateral for securing repayment of the mortgage loan to the lender.
In the context of a real estate transaction, the grantor is the party that is selling or otherwise transferring legal title to the property to the new owner, called the grantee.
Community property is a form of joint property ownership wherein all property and income acquired by one or both spouses during marriage is considered jointly owned and equally shared. Both spouses also share most debts acquired by either of them during marriage.
Property that is acquired before marriage or during legal separation is not considered community property. Likewise, an asset is not community property if it was given to only one of the spouses as a gift or through inheritance. Finally, an asset will also be considered separate property if it is acquired in only one spouse's name and is never used to benefit the other spouse.
Community property also gives each spouse the right of survivorship, meaning that when one spouse dies, his or her interest automatically passes to the other spouse without having to go through probate court.
Acquiring community property is only allowed in the following nine US states: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In Alaska, spouses may opt-in to the community property system if they follow certain rules.
A tenancy by the entirety is a type of joint property ownership acquired by one or both spouses during marriage. Each spouse receives the right of survivorship, meaning that when one spouse dies, his or her interest automatically passes to the other spouse without having to go through probate court. The interest must not be given to only one of the spouses as a gift, through inheritance, or as separate property.
A joint tenancy is a type of joint property ownership wherein all owners own equal interests. Also, each joint tenant has a right of survivorship, meaning that when one joint tenant dies, the other joint tenants will receive the deceased tenant’s interest in the property in proportional amounts. To be joint tenants, all owners must be named as grantees in the same property deed.
A tenancy in common is a type of joint property ownership wherein all owners own an undivided interest in the whole property; however, these interests do not have to be in equal shares. Also, the tenants in common do not have rights of survivorship. This means that when one dies, that person's share in the property goes to his or her named heirs or beneficiaries.
Sole ownership is when a piece of real estate is owned by only one legal owner, while co-ownership—also called joint ownership—is when property is owned by two or more legal owners. Types of joint ownership include joint tenancy, tenancy in common, tenancy by the entirety, and community property.
Keep in mind that different types of entities may own property, including individuals, businesses, and property placed into trusts.
A deed restriction is a covenant or condition that creates specific limitations on how the owner may use the property. Deed restrictions are usually imposed by the property's previous owner, developer, or homeowners' association. Common examples include architectural styles, restrictions on the materials and colors of structures built on the land, and whether or not businesses may operate on the land.
An easement is a type of property right wherein the holder of the easement has the right to occupy, cross, or use another person's land for a specific purpose. For example, a property owner might grant an easement to a neighbor giving them the right to build and use a road across a specific portion of the owner’s land. Easements are considered encumbrances on property titles, and they must be disclosed when transferring property.