Question

ESSAY question:

What are quitclaim deeds, warranty deeds, and security deeds? How are they different, and under what circumstances would each be used?

Answer 1

Quitclaim deed:

It is an instrument of real property conveyance that passes any title, interest or claim the grantor has in the property to another party. The quitclaim deed does not make any representations or guarantee as the the validity of such title, interest or claim.

Warranty deed:

It is an instrument of real property conveyance that passes the title of the property from grantor to another party. In a warranty deed, the grantor promises that the title is clear of any claims.

Security deed:

It functions in a similar fashion as a mortgage. The security deed is an interest in real estate which gives legal title of property to the lender of the mortgage for the term of the mortgage note. Once the note is paid off by the borrower, there is formal cancellation of yhe security deed based upon full payment. Sometimes security deed is refered to as a trust deed or a deed to secure a debt.

-> People typically only use quitclaim deed to convey title between friends and family members which warranty deed used more between professional partners