What is a Warranty Deed?
Many people confuse the concept of a Warranty Deed with the concept of a
sellers guarantee of the physical condition of the house. When we
discuss Warranty Deeds, Warranty refers only to the condition of the
Title. It is not related to the physical condition of the house. There
is no language in a deed that covers the physical condition of the house.
In Maryland, there are three types of Warranty Deeds.
Deeds without a Warranty
Deeds without a Warranty are also know as Quit Claim Deeds. Often people
will say "Quick Claim Deed" by mistake. Deeds without Warranties are typically deeds from fiduciaries. For example Personal
Representatives of an Estate, Bankruptcy Trustees, and Foreclosure
Trustees. A Quit Claim deed contains no guarantees of title. If you are taking title from a deed
without Warranties, it is particulary critical
that you obtain Owners Title Insurance.
Special Warranty Deed
These deeds are by far the most common in Maryland. The seller gives a
title Warranty that the title is good from the time that the seller has
owned the property. The seller makes no representation of the quality of
the title from before the seller owned the property. Given that there
are no prior title guarantees, it is likewise critical that you obtain
Owners Title Insurance.
General Warranty Deed
These deeds are
rarely used in Maryland. This would be where the seller guarantees the
title all the way back. Given the local customs, and terms of the local
contracts, these type of deeds would not be used.
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