OfflineI am posting this for those that need a clearer understanding on the types of deeds that there are.
DEFINITION OF DEED
A deed is the written document which transfers title (ownership) or an interest in real property to another person. The deed must describe the real property, name the party transferring the property (grantor), the party receiving the property (grantee) and be signed and notarized by the grantor. To complete the transfer (conveyance) the deed must be recorded in the office of the County Recorder or Recorder of Deeds. There are two basic types of deeds: a warranty deed, which guarantees that the grantor owns title, and the quitclaim deed, which transfers only that interest in the real property which the grantor actually has. The quitclaim is often used among family members or from one joint owner to the other when there is little question about existing ownership, or just to clear the title. A written document for the transfer of land or other real property from one person to another. A quitclaim deed conveys only such rights as the grantor has. A warranty deed conveys specifically described rights which together comprise good title.
**************************************
Types of Deeds:
Warranty Deed
If a deed is intended to be a general warranty deed, it should contain a phase specified by state law such as the phrase "conveys and warrants". These words, called operative words of conveyance, carry with them several warranties which the grantor is making to the grantee. Examples of the warranties are:
First, the grantor warrants that the grantor is the lawful owner of the property at the time the deed is made and delivered and that the grantor has the right to convey the property.
Second, the grantor warrants that the property is free from all encumbrances or liens.
Third, the grantor warrants that he or she will defend title to the estate so that the grantee and the grantee's heirs and assigns may enjoy quiet and peaceable possession of the premises with the power to convey the property.
Quitclaim Deed
A quit claim deed conveys to the grantee and the grantee's heirs and assigns in fee all of the legal or equitable rights the grantor has in the property that existed at the time of the conveyance. An example of operative words of conveyance are "convey and quit claim." There are no warranties of title.
Special or Limited Warranty Deed
In contrast to a general warranty deed, a special warranty deed limits the liability of the grantor by warranting only what the deed explicitly states. A special warranty deed has practically the same effect as a quitclaim deed. Special warranty deeds are generally used by corporations or other entities that want to avoid assuming the liability of a general warranty deed. Like the general warranty deed, the special warranty deed should contain the appropriate language such as "conveys and specially warrants." Usually, the grantor warrants that he or she did nothing to impair title during the period the grantor held the title. While a special warranty deed may contain covenants of title, these covenants will usually cover only those claims arising by, through, or under the grantor.
Fiduciary Deed
This is a deed to be executed by a fiduciary such as a trustee, guardian, conservator, or similar person in their appointed capacity.
Security Deed
This deed is used, rather than a mortgage, to give a lender a security interest in the property. A security deed, as opposed to a mere mortgage, passes legal title to the land while reserving unto the debtor the equitable title to use and enjoy the conveyed land subject to compliance with debt obligations.
Release Deed
This deed, also known as a deed of reconveyance, transfers all of the rights granted to a trustee under a deed of trust loan back to the grantor after the loan has been fully repaid.
******************************************
HOPES THIS HELPS TO GIVE YOU CLEAR UNDERSTANDING ON DEEDS
Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
Thanks Anita!
The wording's kind of hard to understand, but it's really nice to have these to refer to. I'll be coming back to this several times, I think.
Thanks again,
Rina
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
I know that to some it may ve aa little difficult thats why I also posted a legal resource post as well. Any information is better than none at all.
Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
I agree. Thanks again!
"Obstacles can slow you down, but they can only stop you with your permission." Dean Graziosi (BARM pg 101)
"For I know the plans I have for you," declares the Lord, "plans to prosper you and not to harm you, plans to give you hope and a future." Jeremiah 29:11
For a little about me, welcome to the site, and a few tips for new DG family members, click on this link: http://www.deangraziosi.com/user/3249
What is important to understand about QuitClaim deeds is that they convey "whatever interest the person has in the property"- which may be NONE!
I always thought that a fudiciary deed was the same thing as a trust deed but someone just told me it was not. Can anyone weigh in on that one?
Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
I had never heard of it. Seems like it only comes into play in estates. I don't play much in the probabte/conservatorship arena. But here is a quick overview:
http://www.wisegeek.com/what-is-a-fiduciary-deed.htm
http://www.wisegeek.com/what-is-a-fiduciary-deed.htm
No I already know what a fiduciary is.. I was trying to find out if that was the same or relevant to a trust deed.
Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
It seems like it's akin to a warranty deed with the fiduciary "personally guaranteeing" the title.
now I see. I completely understand and write the warranty deeds but I have never done a trust deed. I was looking into some investment property in mexico and they said it was deeded via trust deed.
Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
They are saying that they will use a Deed of Trust, not a mortage. (Often they are used inter-changeably but are not really the same).
Explanation here:
http://www.nolo.com/definition.cfm/Term/A1FCB053-C785-4625-89AA08D5F75B5...
thanks for the definitions of deeds, i'm sure i'll need to refer to them @ some point.SULLY.
YOUR HERO, SULLY
More good info to have. I'm at the point where I'm trying to tie all my terms together because making deals can be as easy as using the right terminology and having the knowledge to back it all up through out the process.
John 14:6
just in case someone needs it
Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
*Fiduciary Deed – A fiduciary deed is a deed used to transfer property when the grantor is a fiduciary such as a trustee, guardian, conservator, or executor acting in his official capacity. A fiduciary deed usually only warranties that the fiduciary is acting in his appointed capacity and within his allotted authority.
*Trust Deed – A trust deed is a written instrument which transfers property to a trustee to secure an obligation such as a promissory note or a mortgage. The trustee has the power to sell the real property in the case of a default on the obligation.
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."
..
Anita
******************************************
TWITTER - anitarny / FACEBOOK - anitarny
"FAILURE IS NOT AN OPTION"
Anita thank you so much for reminding us of the advantage of having these post. It's great to be able to look back a year or so and find out things still apply. Continued success...........Lubertha
"GOD IS STILL IN CHARGE, HE IS THE AIR WE BREATHE"
I see a lot of people use these two terms interchangeably but they are very different. My understanding (coming from many gurus)is the "deed Of Trust" is essentially a mortgage. The "Trust Deed" is granting actual ownership of the property, also just referred to as the "Deed to the Property".
Hope I didn't just confuse anyone.
Steve
"Do something you LOVE and you will never work another day in your life."
"Nothing can ever stop you without your permission."
"So long as you haven't quit, then you haven't lost."
It lays out the parties of the mortgage and the amount. The trust deed, or the deed of trust is used for that purpose. The NOTE lays out the terms and is the actual mortgage.
The DEED is either a GRANT deed, a WARRANTY deed, A QUIT CLAIM deed, a special warranty deed, etc. These deeds describe the ownership of the property.
A trust deed is actually another term for deed of trust. It says that there is someone who has lent money against the property and so they have a trust holder interest in the property. It designates someone as a lien holder essentially.
Hope this helps clarify.
It's important to remember that not all deeds are used in all states. Read up on it online for state specific information, but it's best to hire a realtor or attorney who has been trained in real estate principles, law and contracts. Of course, one has to understand the relationships between deeds, liens and title search, too, as they all affect one another.
Rick Allison, Realtor
Amarillo, Texas USA
Find comps, private lenders and cash buyers nationwide: www.TheRealEstate.PRO
Foreclosure and pre-foreclosure search engine: http://tinyurl.com/b6w7h6o
The People Helping People Movement: www.greatEPXsite.NET
The DEED is either a GRANT deed, a WARRANTY deed, A QUIT CLAIM deed, a special warranty deed, etc. These deeds describe the ownership of the property.
A trust deed is actually another term for deed of trust. It says that there is someone who has lent money against the property and so they have a trust holder interest in the property. It designates someone as a lien holder essentially.
Hope this helps clarify.
Yeah I was overly general and misspoke. I meant that the DOT is related to the mortgage not that it actually IS the mortgage. On the "Trust Deed" I was thinking of a "Trustee Deed" such as that issued to the bank when they buy back a house at auction. Damn now I need to correct a few comments I've made to others, oops.
Thanks for setting me straight before I did even more damage.
Steve
"Do something you LOVE and you will never work another day in your life."
"Nothing can ever stop you without your permission."
"So long as you haven't quit, then you haven't lost."
It is complicated and some of the terms overlap. Not easy to keep it all straight! Best to you!
I just bought a property with a quit deed, any advice on how Ican ensure I have full title ownership so I dont have issues selling it in the future, thanks?
Looking for some nice network of people to help make good sales.
"A diligent man is on his way to greatness"-cyrillepat
I honestly didn't know about all the different types of deeds, this is going to be good to know
You may want to have a title search done.
"You're never too old to be what you were meant to be!"
www.deangraziosi.com/real-estate-forums/investing-journals/59128/day-for...
"Shining Like a Star & Dancing on Sunshine"
"Shoot for the moon! Even if you fall short, you'll still land among the stars!"
Thanks for the Definitions. I always wondered what the diffrent deffinitions were for the diffrent deeds.
" Not Having a goal is more feared than not reaching one"
Christa Niven
oh, my aching head. just broke down and bought a book off amazon that explains all the different terms...duh/what, i open the book and there is the explanation.eazier.
My understanding of trust deeds is that they are used to secure a lien on the property much like the Security Deed you described. They can be used as a wrap-around by filing an All Inclusive Trust Deed, at least in CA and UT where I have seen them used. They give the debtor equitable use of the property while securing the middle person's claim on the property.
The also are used where a Trustee(Title Co. or Lawyer) is set up as a middleman between the debtor and the lender. If payments are not made as contracted, the Trustee can file for default(NOD)and sell the property at a trustee's sale if the payments are not caught up. These are done in the Western States all the time.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
In real estate transactions involving trust deeds are normally structured so that the lender gives the borrower/trustor the money to buy the property, the seller executes a grant deed giving the property to the trustor, and the borrower/trustor immediately executes a trust deed giving the property to the trustee to be held in trust for the lender/beneficiary. Trust deeds differ from mortgages in that trust deeds always involve at least three parties, where the third party holds the legal title, while in the context of mortgages, the mortgagor gives legal title directly to the mortgagee.[1] In either case, equitable title remains with the borrower.
A trust deed is normally recorded with the recorder or county clerk for the county where the property is located as evidence of and security for the debt. The act of recording provides constructive notice to the world that the property has been encumbered.[2] When the debt is fully paid, the beneficiary is required by law to promptly direct the trustee to transfer the property back to the trustor by re-conveyance, thus releasing the security for the debt.
Investing in Deeds:
Trust Deed Investments (we are seeing more of this type of investment now) can provide substantial returns with minimal risk. Investors have two options available to them for investing in trust deeds, purchasing an existing promissory note or making a loan directly. While similar in function to traditional mortgages, the main distinction between the two types of investments is that trust deeds involve three different parties—the lender, the borrower, and the trustee. The person who is appointed the trustee operates as an independent entity to hold the legal title to a property on the lender’s behalf until the borrower has completely paid off the loan, but if a default were to occur, the lender can take ownership of the property.
Randy Bailiff
Dean Graziosi Real Estate Investment Coach
A deed of trust or trust deed is a legal registration with the county recorder that indicates there is a legal obligation, or note, payable from the owner of the property to a beneficiary (the one that lent the money) and the property in question is held as security for the note. It is registration that there is a mortgage on the property.
Bill O'Rafferty
Trademark Realtors
billoraffertyproperties@****
to insure your interest in the property.
Bill O'Rafferty
Trademark Realtors
billoraffertyproperties@****