Limited Warranty Deeds: Here the Grantor conveys to the Grantee all of their right, title and interest in the real estate, and assures the Grantee that the Grantor is lawfully the owner of the property, that it is free and clear of all encumbrances, that the Grantor has the unrestricted power to sell the property (Absolute Fee Simple), but that the Grantor WILL NOT protect and defend the Grantee from all persons claiming a right or interest in the property, but ONLY from persons making a claim through or under the Grantor. This means that the Grantor will not defend the Grantee from persons making claims from the past or against former owners. If you are dealing with a Bank Owned Property (REO) the deed the Purchaser will likely receive will be this type of deed. Corporations and Partnerships like to give this type of deed, but most times without good reason.
Fiduciary Deeds: When a representative for the owner is charged with conveying real estate, it is traditionally performed by the use of this type of deed. Since the representative is not the owner, they are often times unable to have the knowledge of the property to warrant the condition of title to the purchaser. Therefore, the Grantor in this type of deed states to the Grantee that they are the duly appointed and qualified representative of the owner, and that the owner has the unrestricted power to sell the property (Absolute Fee Simple) and that all of the legal proceedings leading up to the deed have empowered the representative to convey the property and that he has authority to do so. These are the only warranties made in a Fiduciary Deed. Examples include Executor’s of estates, Trustees of Living or Family Trusts and Sheriff’s Deeds from foreclosure sales.
Quit Claim Deeds: Here the Grantor conveys whatever interest they may have in the real estate to the Grantee without any warranty whatsoever. So, if the Grantor has no interest in the property then the Grantee will receive no interest. These deeds are typically used in transactions to clear previous mistakes in the chain of title where the Grantor wants no future obligations concerning warranties. Divorces are a chief source for Quit Claim Deeds where the one party is ordered to convey the property to the other.
Types of Vesting:
Easily confused with types of Ownership Interests and Deeds is the manner in which a Grantee is said to hold title to property. We call the manner in which someone “holds” title vesting or tenancy. Here are some of the ways an owner can hold title:
Tenancy in Common: Where two or more individuals hold title in respective fractional interests, and can convey them separately or jointly, to third parties. The death of an individual does not transfer the ownership interest to the other party, but is subject to distribution pursuant to the law of descent and distribution or their will.