When buying or selling real estate, a deed is one of the most important documents required to complete the transaction. The act is a legal document that transfers the title and ownership of the property to the new owner. It is signed by both the buyer and seller and should be recorded at the register of the deeds office.
That said, different deeds are used in New Jersey to convey the different types of property ownership. These are a Quitclaim Deed, a Warranty Deed, and a Bargain & Sale Deed. Keep reading below to learn more about these different types!
A Quitclaim Deed
A quitclaim deed is relatively common in real estate transactions. It makes no guarantees about the right and title of the person conveying the property. It also transfers whatever interest the seller has.
Quitclaim deeds are typically used when the property is transferred between family members or divorcing spouses. The property subject to a quitclaim deed is traditionally given rather than sold. Quitclaim deeds may also be used if there is a lien on the title. The quitclaim deed conveys that the property with the lien is still in force.
A Warranty Deed
The warranty deed is the most commonly used form of the property deed and carries a promise that the seller has a good and clear title, free of liens or encumbrances. As a general rule, the warranty deed includes a provision where the seller will incur all costs if there is any cloud on the title.
There’s also a variation of the warranty deed known as the “special warranty deed.” This limits the warranty to any liens or encumbrances placed on the property during the seller’s ownership.
A Bargain and Sale Deed
The bargain and sale deed is similar to the quitclaim deed, but covers sold the property. A bargain and sale deed is a deed conveying real property without covenants. This is a deed for which the grantor implies to have had an interest in the property but offers no warranties of title.
Contact Bergen Realty Team for trusted professionals to help you navigate the different types of deeds. We can provide you with any necessary information to make you confident about purchasing a new home.