I am just looking for some advice regarding deeds, I understand that when we buy land we are always using a warranty deed, but when it comes to selling, what types of deeds do you typically use? If I am making sure the title is clear before I buy and I good to just use a warranty deed? Or do you usually use a quit claim deed to ensure no one can come after you in the future, and does this type of deed throw off any seller? Just looking for some insight on what you guys normally do, and any feedback is greatly appreciated.
@rphil99 hi! A Special Warranty Deed says “I warrant for the period I owned the property”. Or you can also sell with a Warranty Deed: more costly but you can also sell at a higher price.
A Quit Claim Deed is another option (“whatever interest I have on this property, I pass it to you”) to sell fast but at a very low price.
The type of property and location and type of sellers will also drive your choice as well.
I would second what @Arturo said. Moreover, if you ever do sell with a Warranty Deed, just make sure you’ve got title insurance on the property. This will protect you if anyone ever discovers a cloud on the title and tries to come after you for it.
I agree with @Arturo Arturo and @retipsterseth - if I’ve bought and closed using a title company and got a warranty deed and title insurance then I will sell with a warranty deed (and close using a title company). If I am self-closing I will use a special warranty deed (or, if bought with a tax sale in the property history or a quit claim or tax deed in the cain of title - then sell with a deed without warranty).
So if you close through a title company or closing attorney, this is actually a moot point because the title company will require a warranty deed on both sides of the transaction (i.e. when you buy & when you sell) in order to issue title insurance.
This is my preferred way to close in the land business because it gives the most amount of protection against any potential “gotchas” when it comes to the title work.
If you decide closing through a title company or attorney isn’t for you, it’s considered best practice to buy via general warranty deed and sell via special warranty deed.
I don’t know of a situation where I would ever justify buying a property via quit claim deed as it’s too risky.
I’ve had a property where a $50,000 judgment popped up on title after we bought through a title company.
Fortunately, we had title insurance, so after filing a claim it was taken care of - but to me, if title reps who do title work 40+ hours a week are capable of making mistakes that costly, who am I to think I can do better, as a layperson?