Buying a home is not a walk in the park. There are factors to check before deciding on a real estate. Oftentimes, you need the help of a mortgage broker in San Jose California to close the deal easier. In other times, you need to research on your own.
One of the few things to check before you become a property owner of the house with the best interest rate is the deed. A deed is a document that outlines who the property owner is. There are five types to real estate deeds every owner with a mortgage should know.
General Warranty Deed This deed entitles the buyer to the property’s entire history. Also, this guarantees that the seller does not have any liens against the property. Otherwise, the seller has to pay the buyer for the said claims.
Special Warranty Deed This is also known as the “grant deed“. What this covers is only the history during which the seller owned the house. The seller will compensate for debts, loan programs in California, and issues accrued during their ownership period.
Bargain and Sale Deed This deed is perfect for those who wish to transfer a house to another family member’s name. This deed is also used when one wants to move the property into a trust. A bargain and sale deed allows permission to the grantor to transfer the title.
Quitclaim Deed The quitclaim deed has no title covenant. What this refers to is the simple transfer of names written in the title. Buyers don’t have the warranty on the property title’s status. If liens exist against the house, the seller is the one responsible for them.
Special Purpose Deed Special purpose deeds are admissible in court orders and proceedings. You can consider this as the quitclaim deed if you are acting in another person’s formal capacity.
GoldenPoint Finance understands people’s needs to have their own home. Thus, research more before you buy. Do you have questions about deeds and titles? Ask away in the comment section below.