Importance of the Deed

by | Aug 18, 2018 | Blog

The Deed is one of the most important documents in a closing. Here are some things that may or can help you understand their use and importance.
SECURITY DEEDS
 
Security deeds are used by lenders to evidence that a loan was made to the borrower and the real property serves as the collateral for the loan. Security deeds are signed by a borrower. These deeds are used in conjunction with a promissory note and recorded in the real property records. In jurisdictions outside of Georgia, these documents are called mortgages or deeds of trust, among other things.
CONVEYANCING DEEDS

Conveyancing deeds transfer title from the grantor (seller) to the grantee (buyer). These are very important documents that affect ownership and the public record. These are signed only by the grantor. Below are several types of Conveyancing Deeds.
a.   QUITCLAIM DEED

An instrument merely releasing to the grantee without warranty all the right, title or interest of the grantor in the land described is called a quitclaim deed. If properly drawn and executed, it is fully as effective to pass title as a warranty deed.
b.   LIMITED WARRANTY DEED / SPECIAL WARRANTY DEED

A limited warranty deed is one in which the extent of liability for defective title is cut down by special recitals. The form in common use limits the warranty to the claims of persons holding by, through, or under the grantor. This is the type of deed that is specified in the Standard GAR Contract.

c.   GENERAL WARRANTY DEED

A warranty deed is one containing covenants of title, usually a general warranty, which includes in itself covenants of a right to sell, of quiet enjoyment, and of freedom from encumbrances.

d.   TRUSTEE’S DEED

A Trustee’s Deed is the vehicle for transferring ownership out of the trust.  The deed will include a recital about the Trust Section that gives the Trustee the power to sell real property.

e.   EXECUTOR’S DEED

An Executor’s Deed is used when a person dies with a will and the Probate Court has issued Letters Testamentary. The Letters Testamentary will appoint an Executor and will set out who has the right to sell real property.

f.   ADMINISTRATOR’S DEED

An Administrator’s Deed is used when a person dies without a will and the Probate County issues Letters of Administration. The Letters of Administration will set out who has the right to sell the real property.