I’m researching some pieces of vacant land that I found in a county’s delinquent tax list, and noticing different types of deeds in these properties’ histories. For example, one property shows it was transferred via quitclaim deed a few times over the last few decades, except one transaction where it was transferred via warranty deed.
This has got me wondering, what type of deed do you use when buying and selling vacant land? How critical is it to you? For example, if you offer to buy a piece of land and want to use a warranty deed but the seller insists on quitclaim, would you likely back out of the deal? (Or am I imagining a scenario that never actually happens? Does the seller generally not care?) Assuming you are using a title company for title insurance and closing, do they demand that it be a warranty deed?
Also I am looking to do this in Florida in case that affects your answers! I really appreciate any advice.
@mizugori I always require a warranty deed when I’m buying. On the selling end (depending on how confident I am in the title history), if I’m self-closing, I’ll use either a special warranty deed or a quit claim deed.
If a title company or closing attorney is involved, a warranty deed will be required in every transaction, because this is required in order for a title insurance company to issue their policy.
It’s pretty important to understand the differences between these deed types. A quit claim deed and a warranty deed are almost like opposites, in terms of how much of a “guarantee” they’re giving to the new buyer, with regard to having a clear title. You can read up on the differences between all three deed types here:
It’s also worth noting, whenever a title company sees a quit claim deed in the chain of title, it can cause some problems because it means that the property was transferred without the seller giving their promise that the title was clear (they could be selling a property they don’t even own).
Of course, if they actually do their job thoroughly and completely, they should be able to gather enough evidence to resolve the issue, but most title companies will just say “no” if they see a quit claim deed anywhere in the chain of title, because they don’t like risk - so it’s worth being aware of that.