A deed is the document that transfers ownership of real estate. It contains the name of new and old owners and a legal description of the property. The deed is signed by the person transferring the property.
Types of deeds include
- Quitclaim deeds: A quitclaim deed transfers whatever ownership interest a person has in property. Quitclaim deeds are commonly used by divorcing couples.
- Grant deeds: A grant deed transfers ownership and implies certain promises – that the title hasn’t already been transferred to someone else or been encumbered, except as set out in the deed.
- Warranty deeds: A warranty deed transfers ownership and promises the buyer that the transferor has good title to the property in states other than California. The transferor guarantees that he or she will compensate the buyer if that turns out to be wrong.
- Trust Transfer Deeds: Any transfers of Real Property into or out of a Trust will use a Trust Transfer Deed, including to the County that there is no charge in Property Taxes.
- Homestead Deed: This is executed and filed in order to protect the equity in one’s home from creditors.
- Inter Spousal Transfer Deed: This type of deed will clear ownership issues on Real Property between spouses, usually to show ownership with one or the other spouse.
When preparing a deed, the deed should show if the property is to be held in Joint Tenancy, Tenants in Common, Community Property, Community Property with Rights of Survivorship or Sole and Separate Property. These designations will determine how the property is taxed how it will transfer and classifies if the property is inheritable and by whom.