In Tennessee, there are different types of deeds. First, let’s define what “deed” means. It can be confusing because the term, “Deed,” also refers to a Deed of Trust. A Deed of Trust is the document that Tennessee records to secure a property as collateral for a lender.
In short, a Deed of Trust is not the document that we are talking about. We are talking about a deed that conveys someone’s interest in real estate to another person or entity.
Types of Deeds
In our office, the most common type of deed for real estate is a Warranty Deed. It’s so common that many people do not realize that a Warranty Deed is only one specific type of deed. In real estate, there are three main types of deeds to know about. Asides from those, there are several miscellaneous types that fall under the main three.
- Warranty Deed: In this type of deed, the grantor–or the seller–is providing a warranty to the grantee–or the buyer–that he or she is conveying a good and marketable title. The grantor is also stating that he or she owns the property and has the right to sell it.
- Quitclaim Deed: This is the second most common type of deed that we see. With this type, the grantor makes no claims as to the title. In essence, they are saying, “Whatever interest I have in this property, I give to you.” This means that the grantor could actually have no interest in the property, 100% of the interest in the property, or any interest on the spectrum in between those two extremes. Because the grantor is making no warranties as to the title, there is little title security.
- Special Warranty Deed: This type of deed is somewhere in between the two deeds above. The grantor states that they have not had any title issues while they have owned the property. This is the only guarantee in this deed. Commercial real estate transactions will often use this type of deed.
- Other Miscellaneous Deeds: There are several other miscellaneous deed titles that are used, but those deeds are usually somewhat synonymous with the deeds described above.
Remember that the type of deed does not affect the property’s title. For more information about a property’s title, see our previous blog, “Options for Titling Real Estate in Tennessee.”
However, it is important to know the type of deed being used so that you, as the buyer or seller, know exactly what you are guaranteeing or receiving. Our firm would be glad to help guide you to the correct Deed that should be used in your situation.
If you are unsure how your property is titled or want to see if there are better options for you, contact us and we would be glad to find the best option for your situation.
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