What are the Different Types of Deeds?
Utilized often in estate planning, deeds are a useful way to pass real property (real estate) to an individual’s heirs after death. So, what are the different types of deeds commonly used in Michigan estate planning?
What is a warranty deed?
A warranty deed is a type of deed where the grantor (seller) guarantees that they hold a clean title to a piece of real estate. A clean title means there are no conditions, liens, or restrictions on the property.
A popular option when estate planning in Michigan, a Ladybird deed is a type of warranty deed that takes effect after the death of the grantor.
What is a quit claim deed?
A quit claim deed (sometimes inaccurately referred to as a “quick” claim deed), is the opposite of a warranty deed. An individual who transfers property through this type of deed does not guarantee that he or she has a good title to the property. This type of deed transfers whatever interest the grantor had in the property at the time of the transfer.
What is a covenant deed?
A cross between a warranty and a quit claim deed, a covenant deed provides a limited warranty. Usually, this means the grantor has not done anything that would cause problems with the title during his or her ownership. Warranties are not provided for the time prior to when the grantor received the title.
Help is available
If you are interested in utilizing a deed in your estate planning, please call the attorneys at O’Reilly Rancilio at 586-726-1000 or visit our website.