My REALTOR said that I would be getting a Warranty Deed when I purchase my home. What’s a Warranty Deed?
When you purchase your historic home (or any other home for that matter) a Warranty Deed provides a number of guarantees from the seller to the buyer. A warranty deed includes a full description of the property and asserts that the seller of the historic home actually owns and can transfer full and clear title of the property. A warranty deed also certifies that the historic property is free of any easements, liens, or other encumbrances on ownership.
My aunt wanted to sell us her historic home and she said we could change title with a Quit Claim Deed. What’s a Quit Claim Deed?
Quit Claim Deeds are used when the transfer of ownership in the historic property does not occur as the result of a traditional sale. For example when a historic home in the Kalamazoo area is conveyed through a Will or as a gift, when property is placed in a trust, or to distribute property as part of a divorce settlement then a Quit Claim Deed can be used to transfer the title. Quit Claim Deeds in Kalamazoo are also common when someone wants to sell historic property but they’re not entirely certain what the property boundaries are or whether any other claims can be made on the property.
Is there greater risk when you purchase a historic home and get title with a Quit Claim Deed?
Quit claim Deeds do not contain any guarantees of any kind, which means that you could buy a historic property, receive a Quit Claim Deed, and later find out that the person you bought it from wasn’t legally able to sell you the property at all.
What is the difference between a Quit Claim Deed and a Warranty Deed in Kalamazoo MI?
When it comes to a Warranty Deed vs. a Quit Claim Deed, the major difference is in the guarantees. Under a warranty deed, if it turns out that the property is not what the seller promised or there’s an uncleared lien or other block to the title, the buyer can sue the seller and recover damages. But if the property was conveyed through a Quit Claim Deed, the buyer has no options for solving the problem. For this reason, a Warranty Deed should generally be viewed as more valuable than a Quit Claim Deed, though there are some special circumstances where that is not the case.