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The different types of real estate deeds

On Behalf of | Nov 9, 2023 | Real Estate |

The deed to your Indiana home is a document that verifies that you have the legal right to sell or gift it to someone else. Without a proper deed, it may not be possible to complete a transaction as you wouldn’t be able to prove that the house is actually yours. There are several different types of deeds that can be used depending on your needs.

The mortgage deed

If you finance the purchase of your home with a mortgage, the lender will place a lien on that property. In the event that you fail to make a mortgage payment in a timely manner, the lender can repossess the property. A trust deed is similar to a mortgage deed in that a lien is placed on the home until a loan balance is paid off. However, in this scenario, the deed is held by a trustee until this happens. Once the mortgage is paid in full, the beneficiary receives total ownership of the house.

Grant and warranty deeds

A grant or warranty deed is used by the home’s current owner to indicate that it’s owned free and clear. The owner promises that he or she can transfer or sell the property without issue. A warranty deed offers the highest possible level of protection as the seller takes personal responsibility for any claims that might be made after the real estate transaction is complete.

Quitclaim deeds

A quitclaim deed merely states that an existing owner is walking away from any claim to the property. However, it doesn’t mean that there aren’t any liens or other issues that could make it difficult or impossible to legally own the property after a sale or transfer is complete.

If you are looking to buy or take ownership of a property, it’s important to make sure that the title is clean and valid. A title search is typically part of the real estate purchase process, and the local records office will be able to answer any questions you might have about who owns the property you want to acquire.