When it comes to real estate transactions in Buffalo, there are several types of deeds that you may encounter during the process. A deed is a legal document used to transfer ownership of a property from one party to another. Understanding the different types of deeds is crucial for any real estate transaction, whether you are buying or selling property in Buffalo. In this blog post, we’ll discuss six common types of deeds you’re likely to encounter in Buffalo real estate.
When buying or selling real estate in Buffalo, New York, it’s crucial to understand the different types of deeds involved in the process. A deed is a legal document that transfers ownership of a property from one party to another, and each type of deed offers a different level of protection and responsibility for both parties. Understanding these variations can help you make informed decisions throughout the transaction. Below are six types of deeds you’re likely to encounter in Buffalo real estate.
1. General Warranty Deed
A general warranty deed is the most common type of deed used in Buffalo real estate transactions. This type of deed provides the buyer with the highest level of protection against any claims or liens against the property. With a general warranty deed, the seller guarantees that they have clear title to the property and that there are no outstanding liens or claims against it. This is the most common type of deed and offers the greatest protection to buyers.
A Warranty Deed is the most common and protective type of deed in Buffalo real estate transactions. With this deed, the seller guarantees that they have clear ownership of the property and have the legal right to sell it. The seller also promises that the property is free from any encumbrances, such as liens or disputes over ownership, and that the buyer will not face any legal claims against the property. If any issues arise with the title after the sale, the seller may be required to resolve them at their own expense.
2. Special Warranty Deed
A special warranty deed is similar to a general warranty deed, but it provides less protection to the buyer. With a special warranty deed, the seller guarantees that they have clear title to the property, but only for the time that they owned it. This means that the seller is not responsible for any claims or liens that existed before they owned the property.
3. Quitclaim Deed
A quitclaim deed is a type of deed that transfers any interest the seller has in the property to the buyer. This type of deed does not provide any guarantees or warranties regarding the title to the property. With a quitclaim deed, the seller is simply transferring any interest they have in the property to the buyer. It’s important to speak with your lawyer and understand all legal aspects of buying a property with a quitclaim deed.
4. Sheriff’s Deed
A sheriff’s deed is a type of deed that is used in cases where a property was foreclosed on. This type of deed transfers ownership of the property from the previous owner to the buyer. Because the property was foreclosed on, there may be outstanding liens or claims against the property, so it’s essential to conduct a thorough title search before purchasing a property with a sheriff’s deed.
5. Trustee’s Deed
A trustee’s deed is a type of deed used in cases where the property is held in a trust. This type of deed transfers ownership of the property from the trustee to the buyer. Because the property is held in a trust, there may be specific requirements or restrictions on the sale of the property, so it’s essential to consult with an attorney before purchasing a property with a trustee’s deed.
6. Tax Deed
A tax deed is a type of deed used in cases where the property was sold to pay outstanding property taxes. This type of deed transfers ownership of the property from the previous owner to the buyer. Because the property was sold to pay outstanding taxes, there may be outstanding liens or claims against the property, so it’s essential to conduct a thorough title search before purchasing a property with a tax deed.
Navigating the world of deeds is an essential part of any real estate transaction in Buffalo, NY. Whether you’re a buyer or seller, understanding the differences between a warranty deed, quitclaim deed, special warranty deed, bargain and sale deed, executor’s deed, and deed in lieu of foreclosure can help you avoid potential legal pitfalls and ensure a smooth transaction. Always consult a real estate attorney or professional to guide you through the process and ensure that your rights are protected under the law.
Understanding the different types of deeds is crucial for any real estate transaction in Buffalo. Whether you’re a buyer or a seller, it’s important to know which type of deed is being used and what protections it provides. By working with a knowledgeable real estate professional and conducting a thorough title search, you can ensure a smooth and successful real estate transaction. Are you buying or selling a property in Buffalo? Reach out to our team today to find out how we can help! 716-403-2016