What is a deed?

In real property law, a deed is a legal instrument that is written, sealed and delivered to enforce a transfer of a property and to provide evidence that the receiver has the legal right to possess it.

Transfer of a property

Transfer of a property

In short, a deed is a written legal instrument that is used to grant a person’s right to possess and own a property. A deed on property can be classified under the following types:

General and special warranty deeds – These types of deed convey property ownership from the old owner (grantor) to the new owner (grantee) along with various warranties. The warranties may include security of title against any claims. General warranty deed is usually used for residential properties, while special warranty deed is commonly used in commercial activities.

Bargain and sale deed – Under this contract, the grantor has the right to transfer the property’s title to the grantee, but he/she is not required to make a warranty against any claim or encumbrance. This is usually used in transactions wherein the property is held by court officials; examples are properties that are seized for unpaid taxes and auctioned pursuant to a court order.

Quitclaim deed – A quitclaim deed is actually not a deed at all. It is actually a document that is used to disclaim the right of a grantor (the property owner) over the piece of a property that he/she owns. And while the quitclaim deed renounces the grantor’s ownership, it passes that ownership right to another person (the grantee). This type of deed is normally used to eliminate confusion on the title, to transfer property between family members, or to place a property under the ownership of a business entity.

Deed of trust – A deed of trust is used to convey or transfer the right of a real property to a trustee. The trust deed document is often used to secure a mortgage, giving the lender a security interest in the property, as well as the right to foreclose it if the borrower fails to pay.