A deed is one of the most important documents you will received during closing. Without the deed, ownership will not transfer from the seller to the buyer.

       All deeds are not the same. There are three types of deeds in North Carolina and each offer different types of protection. The three deeds are: (1) general warranty deed, (2) special warranty deed, and (3) quitclaim deed.

General Warranty Deed

       A general warranty deed gives the most protections to the buyer. This deed includes express promises from the seller to the buyer that s/he will assist with or defend the buyer if another individual seeks to interfere or attack the buyer’s title. A general warranty deed is where the seller essentially promises that s/he can convey good title to the buyer. These protections apply to issues that arise during the seller’s possession and the possession of any owners before the seller.

Special Warranty Deed

       A special warranty deed will typically have the same protections given in a general warranty deed, but these protections only exist for defects in the title that are the results of the actions of the seller. This means a special warranty deed does not protect the buyer from issues that arise before the buyer’s immediate seller purchased the property. Special warranty deeds may also exclude one or more of the covenants typically found in a general warranty deed.

Quitclaim Deed

       A quitclaim deeds offers the buyer no protections. This is an “as is” selling of the property without any warranties or covenants to protect the buyer. The buyer receives whatever interest the seller has with little recourse against the seller for problems that arise after the closing.

       If you are buyer or seller of property, contact Jarvis Law to ensure that you are creating the right type of deed for your needs.