Property Deed Types: Warranty, Quitclaim, Special Warranty & More Explained
Understanding property deed types is essential for anyone buying, selling, or transferring real estate. The type of deed used in a transaction determines how much legal protection the buyer receives and what guarantees the seller makes about the property's title.
Using the wrong deed type can leave you exposed to title claims, liens, and ownership disputes that cost thousands to resolve. This guide explains every major property deed type, when each is used, and which one you need for your specific situation.
Table of Contents
What Is a Property Deed?
A property deed is a legal document that transfers ownership (title) of real property from one party (the grantor) to another (the grantee). It's the document that proves someone gave you ownership of the property.
Every valid property deed must contain:
- Grantor and grantee names: Who is giving and receiving ownership
- Legal description of the property: Metes and bounds, lot and block, or government survey description
- Consideration: What was exchanged (purchase price, "love and affection" for gifts)
- Grantor's signature: Must be signed by the person transferring the property
- Notarization: Most states require the grantor's signature to be notarized
- Delivery and acceptance: The deed must be delivered to and accepted by the grantee
General Warranty Deed
The general warranty deed provides the highest level of protection for buyers. It's the gold standard in residential real estate transactions and the deed type buyers should always insist on when purchasing from a stranger.
What It Guarantees (Covenants)
- Covenant of seisin: The seller legally owns the property and has the right to convey it.
- Covenant against encumbrances: There are no undisclosed liens, easements, or restrictions on the property.
- Covenant of quiet enjoyment: The buyer will not be disturbed by anyone claiming superior title.
- Covenant of warranty: The seller will defend the buyer against any title claims — even those that existed before the seller owned the property.
- Covenant of further assurance: The seller will take any reasonable steps needed to perfect the buyer's title.
When It's Used
- Standard residential home purchases
- Arm's-length transactions between unrelated parties
- Any transaction where the buyer wants maximum protection
Pros and Cons
Pros: Maximum buyer protection, covers title issues from any point in the property's history, standard in most residential transactions.
Cons: Seller assumes significant liability, may require a title search before issuing, more expensive to prepare than simpler deed types.
Special Warranty Deed
A special warranty deed (also called a limited warranty deed in some states) offers less protection than a general warranty deed. The seller only guarantees against title defects that occurred during their period of ownership — not before.
What It Guarantees
- The seller hasn't done anything to impair the title during their ownership
- The property wasn't encumbered during the seller's ownership (except as disclosed)
- No guarantee about what happened before the seller owned the property
When It's Used
- Commercial real estate transactions — the standard deed type in commercial deals
- Bank-owned (REO) properties — banks acquired through foreclosure and don't know the full title history
- Corporate or LLC transfers — entities use special warranty deeds because they may not know the property's full history
- Estate sales — executors may not have full knowledge of the property's title history
Buyer's Risk
If a title defect exists from before the seller's ownership period, you're on your own. This makes title insurance essential when accepting a special warranty deed. Title insurance covers defects the deed doesn't, including issues from previous owners.
Quitclaim Deed
A quitclaim deed is the simplest and least protective type of deed. It transfers whatever interest the grantor may have in the property — which could be full ownership, partial ownership, or nothing at all. The seller makes zero guarantees.
What It Guarantees
Absolutely nothing. The seller simply says, "Whatever I have, I'm giving to you." If they have no interest in the property, you get nothing — and you have no legal recourse against the seller.
When It's Used
- Family transfers: Gifting property to children or transferring between spouses
- Divorce settlements: One spouse transferring their interest to the other
- Adding/removing names from title: Adding a spouse, removing an ex
- Transferring property to an LLC or trust: Moving property from personal name to business entity
- Clearing title clouds: When a party with a potential claim signs a quitclaim to release their interest
Pros and Cons
Pros: Simple, fast, inexpensive (no title search required), effective for transfers between trusted parties.
Cons: Zero buyer protection, no guarantee of clear title, no recourse if title problems arise, many lenders won't accept quitclaim deeds.
Bargain and Sale Deed
A bargain and sale deed implies that the seller holds title and has the right to sell, but makes no explicit warranties against title defects or encumbrances. It falls between a warranty deed and a quitclaim deed in terms of protection.
Two Variations
With covenants against encumbrances: The seller warrants that they haven't created any liens or encumbrances. Common in some states as the standard transaction deed.
Without covenants: Similar to a quitclaim deed but implies the seller actually owns the property. Common in tax sales, foreclosure sales, and estate transfers.
When It's Used
- Tax sale purchases
- Foreclosure sales
- Court-ordered sales
- Standard residential sales in states like New York (with covenants)
Grant Deed
A grant deed is the standard property deed in California and several other western states. It provides two implied guarantees:
- The seller hasn't already transferred the property to someone else
- The property is free from undisclosed encumbrances created by the seller
A grant deed provides more protection than a quitclaim but less than a general warranty deed. In states that use grant deeds, title insurance is considered essential to fill the protection gap.
Trustee's Deed / Deed of Trust
These are related but different documents:
Deed of Trust
Used instead of a mortgage in many states. Three parties are involved: the borrower (trustor), the lender (beneficiary), and a neutral third party (trustee). The borrower transfers legal title to the trustee, who holds it as security for the loan. When the loan is paid off, the trustee reconveys title back to the borrower.
Trustee's Deed
Issued when a property is sold at a foreclosure auction under a deed of trust. The trustee transfers title to the winning bidder. Trustee's deeds carry no warranties — the buyer gets whatever title the foreclosed owner had, subject to any senior liens.
Tax Deed
A tax deed is issued when a property is sold by the government due to unpaid property taxes. After a redemption period (varies by state, typically 1-3 years), the taxing authority can sell the property at auction and issue a tax deed to the buyer.
Key Considerations
- Tax deeds generally wipe out most liens (mortgages, judgments) but not all (federal tax liens may survive)
- Title insurance can be difficult to obtain for tax deed properties
- A quiet title action (court proceeding) may be needed to clear the title for resale
- Great opportunity for investors, but requires thorough research and understanding of local tax sale procedures
Deed Type Comparison Chart
| Deed Type | Protection Level | Guarantees | Common Use |
|---|---|---|---|
| General Warranty | Highest | Full title history | Residential purchases |
| Special Warranty | Moderate | Seller's ownership period only | Commercial, REO sales |
| Grant Deed | Moderate | Not previously conveyed, no undisclosed encumbrances | Standard in CA, western states |
| Bargain and Sale | Low-Moderate | Implies ownership, varies by covenants | Tax sales, NY residential |
| Quitclaim | None | Zero guarantees | Family transfers, divorce |
| Trustee's Deed | None | Zero guarantees | Foreclosure sales |
| Tax Deed | Varies | Government authority, limited | Tax lien/sale purchases |
How to Choose the Right Deed
The right deed depends on your transaction type:
- Buying a home from a stranger: General warranty deed + title insurance
- Buying commercial property: Special warranty deed + title insurance
- Transferring to family: Quitclaim deed
- Transferring to your LLC: Quitclaim deed
- Buying a foreclosure: Trustee's deed + quiet title action + title insurance
- Buying at a tax sale: Tax deed + quiet title action
- Divorce property transfer: Quitclaim deed (court-ordered)
Regardless of deed type, always get title insurance when purchasing from someone other than a trusted family member. Title insurance is a one-time cost that protects you against title defects that even a thorough search might miss.
Recording and Filing a Deed
After a deed is signed, it must be recorded with the county recorder's office (sometimes called the register of deeds) in the county where the property is located.
Why Recording Matters
- Creates a public record of your ownership
- Puts the world on notice that you own the property
- Protects you against subsequent claims by other buyers
- Required by most title companies and lenders
How to Record a Deed
- Ensure the deed is properly signed, notarized, and meets your county's formatting requirements
- Bring the deed to the county recorder's office (or mail it in, depending on the county)
- Pay the recording fee (typically $25-$150)
- Pay any applicable transfer taxes
- The county stamps and records the deed, then returns the original to you
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Get the Growth Playbook — $197Frequently Asked Questions
What is the best type of deed for buying a house?
A general warranty deed provides the most protection. It guarantees clear title, the right to sell, and defense against any claims — even those originating before the seller owned the property. This is the standard deed in most residential purchases.
What is the difference between a warranty deed and a quitclaim deed?
A warranty deed guarantees clear title and defends against claims. A quitclaim deed transfers whatever interest the seller has (if any) with zero guarantees. Warranty deeds are for purchases; quitclaim deeds are for trusted transfers (family, divorce, LLC).
Can a quitclaim deed be used to transfer property to a family member?
Yes. Quitclaim deeds are the most common deed for family transfers — gifting to children, transferring between spouses, moving property into a trust, or adding/removing family members from title. Simple, fast, and inexpensive.
Does a deed prove ownership of property?
A deed transfers ownership but doesn't prove it alone. To confirm current ownership, you need the recorded deed plus a title search showing no superior claims. Recording with the county creates a public record of your claim. Title insurance provides additional protection.
What is a special warranty deed?
A special warranty deed guarantees no title problems during the seller's ownership period, but makes no promises about issues from before. Common in commercial sales, bank-owned properties, and corporate transfers. Always pair with title insurance.
How much does it cost to file a property deed?
Recording fees range from $25 to $150 depending on the county. Attorney preparation costs $150-$500 for a simple deed. Transfer taxes, if applicable, are typically 0.1%-2% of the transaction value.
What happens if a deed is not recorded?
An unrecorded deed is still valid between buyer and seller, but creates serious risks. Without recording, a subsequent buyer or lender could claim priority. In most states, the first person to record takes priority. Always record immediately after closing.