Deeds and it’s Types

This article is written by Raman Mishra – Legal Trainee at “Novus Legal – Advocates & Solicitors”. 

Deeds

A deed is a type of legal document that is used by one person to transfer his rights to another person.

Types of deeds    

• Warranty deed
• Quitclaim deed
• Grant deed
• Bargain and sale deed
• Mortgage deed
• Gift deed
• Partnership deed

Use of deeds 

• Deeds are often used to transfer property titles.
• Deeds can also be used to grant power of attorney, patents, licenses, diplomas and commissions.

Deeds are of two types:

1. Bilateral (two parties)
2. Unilateral (one party).

Creation of deed

          Step 1: Signed.

          Step 2: Attested.

          Step 3: Delivered.

          Step 4: Some jurisdictions.

          Step 5: sealed.

          Step 6: Record it with the local county clerk’s office.

What deeds include

• Deeds include essential information such as property description, parties involved and consideration exchange.
• Deeds serve as tangible evidence of property ownership rights and obligations.

Warranty deed

A warranty deed is a type of property deed that transfers the rights to the seller, and also provides certain promises and guarantees to the seller.

Key elements of a Warranty Deed:

1. Title Guarantee: The seller guarantees that they have the correct title to the property and are responsible for it.
2. No Encumbrances: The seller guarantees that there are no encumbrances (such as mortgages, lies, or other rights) on the property.
3. No Defects: The seller guarantees that there are no defects or deficiencies in the property.
4. Protection Against Claims: The seller guarantees that they will protect the rights of the buyers and protect them from any claims.

Types of Warranty Deed:

1. General Warranty Deed: In this the seller provides all types of promises and guarantees.
2. Special Warranty Deed: In this the seller provides only some special types of promises and guarantees.
3. Limited Warranty Deed: In this the seller provides only some limited types of promises and guarantees.

Importance of Warranty Deed:

1. Safety of buyers: Warranty deed provides security to buyers that their rights will be protected.
2. Responsibility of the buyer: Warranty deed makes the buyer responsible that he will fulfill his promise and guarantee.
3. Increase in the value of property:

This is how warranty deeds work:

Step 1: Property Transfer

The seller transfers the property in the name of the buyers.

Step 2: Warranty Deed Creation

The seller creates a warranty deed in which he provides some promise and guarantee to the buyers.

Step 3: Warranty Deed Signing

The seller and the buyers sign the warranty deed.

Step 4: Registration

The warranty deed is registered in the registrar’s office.

Step 5: Title Search

Buyers conduct a title search to ensure there are no encumbrances on the property.

Step 6: Closing

Along with the warranty deed, the seller and buyers agree on payment and other conditions for the property.

Promises and Guarantees of the Warranty Deed

The warranty deed provides certain promises and guarantees to the buyers, such as:

1. Title Guarantee: The seller guarantees that they have the correct title to the property.
2. No Encumbrances: The seller guarantees that there are no encumbrances on the property.
3. No Defects: The seller guarantees that there are no defects or deficiencies in the property.
4. Protection Against Claims: The seller guarantees that they will protect the rights of the buyers and protect them from any claims.

Benefits of Warranty Deed

Warranty deeds provide several benefits to buyers, such as:

1. Safety: Warranty deeds provide security to buyers that their rights will be protected.
2. Confidence: Warranty deeds provide confidence to buyers that there are no encumbrances on the property.
3. Increase in the value of property: Warranty deeds can increase the value of property, as they provide security and confidence to buyers.

Quitclaim deed

A quitclaim deed is a type of legal document that is used by the transfers the grantor’s interest in a property to the grantee.

The purpose of a quitclaim deed

1. Transfer ownership: Quitclaim deeds are used to transfer ownership of a property from one person to another.
2. Release interest: Quitclaim deeds are used to release the grantor’s interest in a property, which can help to clear up any confusion or disputes over ownership.
3. Correct errors: Quitclaim deeds can be used to correct errors in previous deeds or to clarify the ownership of a property.

Quitclaim deed work.

1. Signature: The grantor must sign the deed in the presence of a notary public.
2. Notarization: The deed must be notarized to prove that the grantor signed the deed voluntarily.
3. Description of property: The deed must include a detailed description of the property being transferred.
4. Grantor’s interest: The deed must state the grantor’s interest in the property being transferred.  

Quitclaim deeds are used in certain special circumstances:

1. For Property Transfer
2. For Settling Rights
3. For Property Transfer between Family Members
4. For Property Transfer During Divorce
5. For Estate Planning
6. For Resolving Property Disputes

Creating and recording a quitclaim deed

Step 1: Drafting a Quitclaim Deed

1. Format of Quitclaim Deed: You should create a Quitclaim Deed format as per the real estate laws of your state.
2. Names of Grantor and Grantee: The names of the Grantor and Grantee should be written correctly in the Quitclaim Deed.
3. Property Description: The property description should be written correctly in the Quitclaim Deed.
4. Transfer of powers: The transfer of powers should be written correctly in the Quitclaim deed.

Step 2: Signing and Notarizing the Quitclaim Deed

1. Grantor’s signature: The grantor’s signature should be done correctly on the Quitclaim deed.
2. Notary public’s signature: The notary public’s signature should be done correctly on the Quitclaim deed.

Step 3: Recording the Quitclaim Deed

1. County recorder’s office: The Quitclaim deed should be recorded in the county recorder’s office.
2. Filing fee: A filing fee should be paid to record the Quitclaim deed.
3. Recording: Quitclaim deed should be recorded in the correct manner.

Step 4: Verify Quitclaim Deed

1. County recorder’s office: Quitclaim deed should be verified in the county recorder’s office.
2. Recording details: Quitclaim deed recording details should be verified.

Important things

1. Quitclaim deed should be drafted in the correct manner: Quitclaim deed should be drafted in the correct manner so that it can be recorded in the correct manner.
2. Quitclaim deed should be notarized: Quitclaim deed should be notarized so that it can be authenticated properly.
3. Quitclaim deed should be recorded properly: Quitclaim deed should be recorded properly so that it can be recorded properly

Grant deed

Grant deed is a legal document which is used by the grantor to transfer the right of property to the grantee. In this, the grantor transfers his rights to the grantee, but there is no warranty in it.

Key points of Grant Deed:

1. Grantor and Grantee: In grant deed, both the grantor and the grantee are present, in which the grantor transfers his rights to the grantee.
2. Description of Property: Grant deed contains a description of the property, which includes the property’s location, size, and other details.
3. Transfer of Rights: In Grant deed, the grantor transfers his rights to the grantee.
4. No Warranty: There is no warranty in Grant deed, which means that the grantor transfers his rights to the grantee, but there is no guarantee that there are no claims or liabilities on the property.

          Types of Grant Deed

1. General Grant Deed: This grant deed is the most common type of grant deed, in which the grantor transfers his powers to the grantee.
2. Special Grant Deed: This grant deed is a special type of grant deed, in which the grantor transfers only some special powers to the grantee.

These are some required elements that should be present in the grant deed:

1. Names of Grantor and Grantee – Name of Grantor: The person who is transferring the rights to the property. – Name of Grantee: The person who is receiving the rights to the property.
2. Description of Property – Location of Property – Size of Property – Type of Property (such as residential, commercial, etc.)
3. Transfer of Rights – Mention of transfer of rights to the property by the Grantor to the Grantee. – Terms and conditions for transfer of authority.
4. Consideration – Consideration given by the Grantor for transfer of authority over property to the Grantee (such as money, property, etc.).
5. Signature of Grantor – Grantor’s signature should be on the grant deed. – Signature should be notarized.
6. Witness Signature (if necessary) – Witness signature should be on the grant deed, if necessary. – Witness signature should be notarized.
7. Notarization – Grant deed should be notarized. – Notarization should be on the grant deed.
8. Recording Information – There should be information to record the grant deed. – Recording information should include county, state, and recording date.

Bargain and Sale Deed

Bargain and Sale Deed is a type of legal document used for real estate. This document allows a person or organization to transfer the rights of its property to another person or organization.

Special Features of Bargain and Sale Deed:

1. Rights of the property: The rights of the property are guaranteed in the Bargain and Sale Deed.
2. Warranty: The Bargain and Sale Deed guarantees that the rights of the property are only those mentioned in the document.
3. Bargain and Sale: Bargain and Sale Deed mentions the terms and conditions of bargaining and sale.
4. Legal Right: Bargain and Sale Deed guarantees legal right.

Use of Bargain and Sale Deed:

1. Real Estate: Bargain and Sale Deed is used when a person or organization wants to transfer the right of its property to another person or organization.
2. Rights of the partner: Bargain and Sale Deed is used when a person or organization wants to transfer the rights of the partner to another person or organization and wants to give guarantee of the rights of the partner.
3. Legal Rights: Bargain and Sale Deed is used when a person or organization wants to transfer its legal rights to another person or organization.
4. Property Transfer: Bargain and Sale Deed is used when a person or organization wants to transfer its property to another person or organization.

Benefits of Bargain and Sale Deed:

1. Legal Security: Legal security is guaranteed in Bargain and Sale Deed.
2. Rights of the partner: Rights of the partner are guaranteed in Bargain and Sale Deed.
3. Warranty: A warrantee is given in the bargain and sale deed that the possessor has only those rights which are mentioned in the document.

Essential Elements of Bargain and Sale Deed:

1. Name and Address of Parties: It is necessary to mention the name and address of the parties in the Bargain and Sale Deed.
2. Description of Property: It is necessary to mention the description of the property in the Bargain and Sale Deed.
3. Price of sale: It is necessary to mention the price of sale in the Bargain and Sale Deed.
4. Conditions of bargain and sale: It is necessary to mention the conditions of bargain and sale in the Bargain and Sale Deed.
5. Legal rights: The guarantee of legal rights is given in the Bargain and Sale Deed.
6. Rights of the partner: The guarantee of the right of the partner is given in the Bargain and Sale Deed.
7. Signature and method: It is necessary to mention the signature and method in the Bargain and Sale Deed. 8. Signature of witnesses: It is necessary to mention the signature of witnesses in the Bargain and Sale Deed.
8. Legal Confirmation: Bargain and Sale Deed should have legal confirmation.

Authenticity of Bargain and Sale Deed:

1. Legal Document: Bargain and Sale Deed is a legal document.
2. Legal Confirmation: Bargain and Sale Deed should have legal confirmation.
3. Signature and Method: It is necessary to mention the signature and method in the Bargain and Sale Deed.

Mortgage Deed

Mortgage Deed is a legal document that allows a person or organization to mortgage its property to another person or organization, in which a loan or other financial assistance is provided in exchange for the value of the property.

Essential Elements of Mortgage Deed:

1. Name and address of parties: It is essential to mention the name and address of the parties in the Mortgage Deed.
2. Description of property: It is essential to mention the description of property in the Mortgage Deed.
3. Loan price: It is essential to mention the loan price in the Mortgage Deed.
4. Mortgage conditions: It is essential to mention the mortgage conditions in the Mortgage Deed.
5. Legal rights: The guarantee of legal rights is given in the Mortgage Deed.
6. Signature and Method: It is mandatory to mention signature and method in Mortgage Deed.
7. Signature of witnesses: It is mandatory to mention signature of witnesses in Mortgage Deed.

Types of Mortgage Deed:

1. Simple Mortgage: In Simple Mortgage, permission is given to mortgage the property, but possession of the property is not given.
2. Mortgage by Conditional Sale: In Mortgage by Conditional Sale, permission is given to mortgage the property, and possession of the property is given.
3. Usufuctuary Mortgage: In Usufuctuary Mortgage, permission is given to mortgage the property and the right to use the property is given.

Validity of Mortgage Deed:

1. Legal Document: Mortgage Deed is a legal document.
2. Legal Confirmation: Mortgage Deed must have legal confirmation.
3. Signature and Date: It is mandatory to mention signature and date in Mortgage Deed.

Gift Deed

Gift Deed is a legal document that allows a person or organization to gift its property to another person or organization, in which no financial assistance is taken in exchange for the value of the property.

Essential Elements of Gift Deed:

1. Name and Address of Parties: It is necessary to mention the name and address of the parties in the Gift Deed.
2. Description of Property: It is necessary to mention description of property in Gift Deed.
3. Conditions of Gift: It is necessary to mention conditions of gift in Gift Deed.
4. Legal Right: Gift Deed guarantees legal right.
5. Signature and Method: It is necessary to mention signature and method in Gift Deed.
6. Signature of Witnesses: It is necessary to mention signature of witnesses in Gift Deed.

Types of Gift Deed:

1. Simple Gift: In Simple Gift, permission is given to gift property.
2. Conditional Gift: In Conditional Gift, permission is given to gift the property, but some conditions are imposed.

Validity of Gift Deed:

1. Legal Document: Gift Deed is a legal document.
2. Legal Confirmation: Gift Deed should get legal confirmation.
3. Signature and Method: It is necessary to mention signature and method in Gift Deed.

Benefits of Gift Deed:

1. Legal Security: Legal security is guaranteed in Gift Deed.
2. Property Transfer: Property transfer is guaranteed in Gift Deed.
3. Tax Benefit: Tax benefit can be obtained in gift deed.

Partnership Deed

Partnership Deed is a legal document which is used to establish a partnership between two or more persons, in which the terms, conditions, and rights of the partnership are mentioned.

Essential Elements of Partnership Deed:

1. Name and Address of Partners: It is necessary to mention the name and address of the partners in the Partnership Deed.
2. Partnership Terms: It is necessary to mention the terms of partnership in the Partnership Deed.
3. Arrangement: It is necessary to mention the details of arrangement in the Partnership Deed.
4. Rights: It is necessary to mention the details of rights in the Partnership Deed.
5. Signature and Method: It is necessary to mention the signature and method in the Partnership Deed.

Types of Partnership Deed:

1. Simple Partnership Deed: The terms and arrangements of partnership are mentioned in the Simple Partnership Deed.
2. Limited Partnership Deed: In Limited Partnership Deed, the terms and conditions of partnership are mentioned and the rights of limited partners are also mentioned.

Validity of Partnership Deed:

1. Legal Document: Partnership Deed is a legal document.
2. Legal Confirmation: Partnership Deed must have legal confirmation.
3. Signature and Method: It is necessary to mention the signature and method in Partnership Deed.

Benefits of Partnership Deed:

1. Law Protection: A guarantee of legal protection is given in Partnership Deed.
2. System: Information regarding system is mentioned in Partnership Deed.
3. Rights: Information regarding rights is mentioned in Partnership Deed.

References of Deed:

1. Indian Stamp Act, 1899: This adhiniyam satirizes stamp duty for deed.
2. Registration Act, 1908: This adhiniyam satirizes registration of deed.
3. Transfer of Property Act, 1882: This adhiniyam satirizes property transfer for deed.
4. Indian Contract Act, 1872: This adhiniyam satirizes contract for deed.
5. Partnership Act, 1932: This law makes a satire of partnership for deed.

Online Resources for Deed:

1. Government of India’s Website: Important information regarding deed is available on the Government of India’s website.
2. Law Ministry’s Website: Important information regarding deed is available on the Law Ministry’s website.
3. Indian Stamp Act’s Website: Information regarding stamp duty for deed is available on the Indian Stamp Act’s website.

Suggestions for Deed:

1. Legal Advice: It is necessary to take legal advice for the deed.
2. Correct Information: It is necessary to mention correct information in the deed.
3. Signature and date: It is necessary to mention the signature and date in the deed.
4. Registration: It is necessary to register the deed.

Final Conclusion:

The deed is an important legal document used to transfer the rights to a property. It provides legal protection, order, rights, and tax benefits.