In Florida, as in most U.S. states, several types of deeds can be used to transfer property ownership. The choice of deed depends on various factors, including the specific circumstances of the real estate transaction and the level of protection or warranties the parties involved desire. It is important to know your options before committing to conveying your property as each deed available in Florida has its specific pros and cons. Here are some common types of deeds used in Florida:
1. General Warranty Deed: A Florida general warranty deed is a legal document used in real estate transactions to transfer ownership of real property from a grantor (the seller) to a grantee (the buyer). This type of deed provides the highest level of protection to the grantee by offering extensive warranties and guarantees regarding the title and ownership of the property. Key features of a Florida general warranty deed include:
- Covenant of Seisin: The grantor warrants that they are the lawful owner of the property and have the legal right to convey it to the grantee.
- Covenant of Quiet Enjoyment: The grantor guarantees that the grantee will be able to possess the property without title defects/issues arising from a third-party.
- Covenant Against Encumbrances: The grantor warrants that the property is free from any liens, encumbrances, or claims that could affect the grantee’s title, except for those explicitly mentioned in the deed.
- Covenant of Warranty: The grantor promises to defend the grantee against any lawful claims or challenges to the title that may arise in the future. If a third party makes a valid claim against the title, the grantor is obligated to rectify the situation.
- Covenant of Further Assurances: The grantor pledges to take any necessary actions in the future to perfect the grantee’s title, such as executing additional documents.
In essence, a Florida general warranty deed provides the grantee with a full set of warranties and assurances, both for the present and any future claims to the property’s title. This means that if any title issues or challenges arise, the grantor is legally responsible for addressing them, providing legal defense, and potentially compensating the grantee for any losses.
This type of deed is commonly used in traditional real estate transactions where the seller is confident in the history of the property’s title and wishes to provide the highest level of protection to the buyer. It is especially common in residential and commercial property sales.
When receiving a Florida general warranty deed, it’s crucial for the grantee to conduct a thorough title search and consider purchasing title insurance to further safeguard their investment. Additionally, consulting with a real estate attorney is advisable to ensure that the deed meets all legal requirements and provides the intended protections.
Corey Szalai Law, PLLC has extensive experience in drafting General Warranty Deeds, so if this is something you think you need to have drafted, set up a consultation today.
2. Special Warranty Deed: A Florida special warranty deed, like special warranty deeds in other states, is a type of deed used in real estate transactions to convey property from a grantor (the seller) to a grantee (the buyer). However, it offers a more limited set of warranties and protections compared to a general warranty deed. Here are the key features of a Florida special warranty deed:
- Covenant of Seisin: The grantor warrants that they are the lawful owner of the property and have the legal right to convey it to the grantee.
- Covenant Against Encumbrances: The grantor warrants that the property was not encumbered while the grantor owned the property. There is no warranty made as to encumbrance(s) that existed prior to the grantor’s time owning the property.
In essence, a Florida special warranty deed offers a narrower scope of warranties compared to a general warranty deed. It focuses on protecting the grantee from claims or defects that arose during the time the grantor owned the property, but it does not provide as extensive protection against claims or defects that may predate the grantor’s ownership.
Special warranty deeds are often used in commercial real estate transactions or in situations where the seller may not want to assume responsibility for title issues that existed before their ownership. The limited warranties provided in a special warranty deed are intended to balance the interests of both parties while offering some level of protection to the grantee.
As with any real estate transaction, it’s essential for the grantee to conduct due diligence, such as a thorough title search and the potential purchase of title insurance, to ensure they are aware of any potential title issues. Consulting with a real estate attorney is advisable to understand the implications of the type of deed used and to ensure the deed meets all legal requirements for the state of Florida.
Corey Szalai Law, PLLC has extensive experience in drafting Special Warranty Deeds, so if this is something you think you need to have drafted, set up a consultation today.
3. Quit Claim Deed: A Florida quitclaim deed is a legal document used to transfer ownership interest in real property from a grantor (the seller) to a grantee (the buyer) without making any warranties or guarantees about the quality of the title. Essentially, it conveys whatever interest or claim the grantor has in the property without any promises about the property’s history or condition. Key features of a Florida quitclaim deed include:
- No Warranties: A quitclaim deed contains no warranties or assurances about the title. The grantor does not guarantee that they have clear title to the property or that there are no encumbrances, liens, or claims against the property.
- Limited Protections: The grantee receives no protection or recourse if title issues or defects are discovered after the transfer. If there are problems with the title, the grantee has no legal basis to seek remedies from the grantor.
- Used in Specific Situations: Quitclaim deeds are often used in situations where the parties know each other well and have no reason to suspect title issues. For example, they might be used in transfers between family members, divorcing spouses, or business partners.
- Transfers of Interest: This type of deed is also used when someone wants to transfer their interest in a property, which might not necessarily be the full ownership interest. It’s common in situations like adding or removing a co-owner from a property.
- Doesn’t Confirm Ownership: A quitclaim deed doesn’t confirm or guarantee the grantor’s ownership of the property. It only conveys whatever rights, if any, the grantor has in the property.
It’s important to note that while a quitclaim deed doesn’t provide the same level of protection as a warranty deed, it can be a useful tool in certain circumstances, particularly when there’s a high level of trust between the parties involved. However, it’s crucial for the grantee to conduct a thorough title search and consider obtaining title insurance when receiving a quitclaim deed, as this can help uncover any potential title issues and provide some level of protection.
Corey Szalai Law, PLLC has extensive experience in drafting Quit Claim Deeds, so if this is something you think you need to have drafted, set up a consultation today.
4. Lady Bird Deed. A Lady Bird Deed is a powerful estate planning tool authorized in Florida. It is discussed more fully in its own blog post. To be taken to that blog post, follow the link below:
*The information provided in this blog post is for general informational purposes only and should not be construed as legal advice. By reading this blog, the viewed understands that there is no lawyer-client relationship being formed and that the information provided herein will not be acted upon without first consulting a formal attorney.