Stouffville Real Estate: Three Title Deeds To Know About Before Your Transaction

How do you prove that you have bought a Stouffville real estate property? Once you are done catering to all the transaction costs, you will need to get a title deed. While deeds are meant to prove ownership of property, they come in different types. Knowing the type of deed you will be receiving could sway your decision in the right direction. Here are three titles deeds you need to know of:

 

The General Warranty Deed

 

This deed provides you, as the buyer, with the highest level of protection when purchasing Stouffville real estate. It acts as a sign that the grantor of the property was the legal owner of the property and has cleared it of any liens, encumbrances or debt. As such, you won’t have to worry about these costs once you own the property. Such deeds contain words like “convey and warrant” and “warrant generally” within their verbiage.

 

Special Warranty Deed

 

This option doesn’t provide you with as much protection as the general warranty deed. The deed proves that the property was owned by the grantor, and wasn’t encumbered during the period the grantor owned it. However, it doesn’t provide any guarantee of the property not being encumbered before the grantor’s ownership period. These deeds are common when getting property from an estate or trust or when purchasing commercial property. Such deeds state that the grantor “alienates, remises, releases, and conveys” any interests in the Stouffville real estate property.

 

The Bargain And Sale Deed

 

Bargain and sale deeds offer the buyer no form of protection from encumbrances. It merely states that the property was held by the grantor. It is mainly used during specific situations, such as foreclosure actions and tax sales. These are situations where a property’s history could be murky. Since the deed doesn’t guarantee good title, it could land the buyer in trouble if defects were to appear later on.

 

Reading your title deed carefully will help you understand what you are walking into. The best strategy would be hiring a lawyer to walk you through the purchase process. Take your current situation into account before choosing to accept a title deed from the grantor.