Key takeaways
- A deed transfers title; a title is the legal right of ownership itself.
- General warranty deeds offer the broadest protection; quitclaim deeds offer none.
- How you take title affects survivorship, creditor exposure, and probate.
- Recording establishes priority against later claims.
Deed types
A general warranty deed warrants clear title against all defects arising at any point in the property's history, including before the grantor owned it. It is the standard in most residential resale transactions.
A special or limited warranty deed warrants only against defects arising during the grantor's ownership — common with bank-owned property and in commercial transactions. A quitclaim deed transfers whatever interest the grantor has, with no warranty at all, and is used between family members, in divorce transfers, and to cure title defects. Never accept a quitclaim in an arm's-length purchase.
How you hold title
Sole ownership is straightforward. Joint tenancy with right of survivorship passes automatically to the survivor outside probate. Tenancy in common allows unequal shares that pass by will. Tenancy by the entirety, available to married couples in some states, adds creditor protection against individual debts.
Community property states treat most property acquired during marriage as jointly owned, and community property with right of survivorship can offer a full basis step-up at the first death — a meaningful tax consideration. Ask before closing, because changing it later can have tax and creditor implications.
Recording and common defects
Recording the deed in county land records gives constructive notice to the world and establishes priority. States follow race, notice, or race-notice recording statutes, which determine who prevails between competing claims. Record promptly.
Common defects: unreleased mortgages from paid-off loans, mechanics liens, judgments against similarly named parties, easements not previously disclosed, boundary encroachments, and gaps from inheritance or divorce. Most are curable, some slowly. See title insurance.
Frequently asked questions
What is a title commitment?
The preliminary report showing what the title company will insure, listing requirements to be met before closing and exceptions that will remain. Read Schedule B — it defines what is not covered.
Can I add someone to my deed?
Yes, but it may trigger gift tax reporting, affect your mortgage's due-on-sale clause, expose the property to that person's creditors, and change basis treatment. Consult a professional first.
What is a transfer-on-death deed?
Available in many states, it passes property to a named beneficiary at death without probate while leaving full control during life.
Sources & further reading
- State recording statutes and deed forms
- American Land Title Association title commitment forms
- Uniform Real Property Transfer on Death Act
Figures and rules change. Verify current requirements with the issuing agency or a licensed professional before acting.