Unlock the Power of Digital Signature Legitimateness for Warranty Deed in the United States

How to eSign a document: digital signature legitimateness for Warranty Deed in United States

hi this is joe from prep agent and today we're going to talk about bargain and sale deeds but first let's talk about what a deed is deeds are evidence that title to real property has been transferred title is a legal term that refers to ownership of something in real estate that something is property a person with title to a home has legal rights ownership control and responsibility over that home a deed is the actual legal document that transfers the ownership of a property the deed is signed by the person selling or transferring the property rights also known as the grantor and the d transfers those property rights to the grant d there are several types of deeds including warranty deeds quick claim deeds and bargain and sale deeds the type of deed that should be used in a given situation will depend on the nature of the property being transferred general warranty deeds are commonly used on properties sold because the level of warranty they provide a general warranty deed usually includes statements asserting the grantee is the legal owner of the property that there are absolutely no legal claims against the property and that the grantor will hold the grantee harmless in the event any claims do arise regardless of when the claim is said to have occurred a special warranty deed also called the limited warranty deed includes many of the same statements the difference is that the special warranty deeds only cover claims that happen while the grantor held title to the property if a claim pops up that took place before the grant or held title the buyer is on their own which is why a special warranty deed is only used when a general warranty deed isn't an option like when a grantor sells a property acquired through foreclosure with a quick claim deed the seller makes no warranties of any kind in essence a quick claim deed says i transfer all my rights to the property to you but i don't guarantee that i have any rights in the property this would not be very reassuring to someone spending half a million dollars on a home so quick claim deeds aren't normally used for property sales instead they are helpful for quick transfers between people with established relationships such as between family members or when a situation requires a property's quick release now let's talk about the bargain and sale deed in its most basic form a bargain and sale deed includes a warranty that the grantor has titled to the property but does not guarantee the property is free of claims this is known as a bargain and sale deed without covenants and from the grantees perspective this is better than a quick claim deed but not as good as a warranty deed sometimes a bargain and sale deed will specifically state one or more additional guarantees this is known as a bargain and sale deed with covenants and it's similar to a special warranty deed it's better for the grantee than a bargain and sale d without covenants but still not as good as a general warranty deed bargain and sale deeds are most often used when property is transferred after a foreclosure tax sale or the settlement of a deceased person's estate they may also be used in the same situations as a quick claim deed although they give the grantee a little more protection when given the option grantors prefer to use a bargain and sale deed because it limits their liability grantees on the other hand will always prefer a general warranty deed because it gives them the most protection possible anyone taking title to property with a bargain and sale deed should understand that they are accepting a risk as there may be claims against the property if any warranties or covenants are included in the deed the grantee should read them carefully to make sure they fully understand what they're getting into because once the transfer with a bargain and sale deed has been accepted the grantee can only sue the grantor if some type of claim arises that is specifically covered by the covenant in the deed of course a grantee in real life situation like this should probably look into title insurance and maybe even seek legal counsel but since we're only worried about the real estate exam just keep in mind that bargain and sale deeds are used when limited or no warranties can be provided but title can be proved this is joe from prep agent remember to keep it concise and keep it simple thanks for watching subscribe to our youtube channel to get updated videos and if you're serious about passing your real estate exam go to prepagent.com