Final answer:
The two common types of deeds used to convey real estate interest are the general warranty deed, which offers full guarantees of clear title from the seller, and the quitclaim deed, which conveys whatever interest the seller has with no warranties.
Step-by-step explanation:
Common Types of Deeds in Real Estate
Two common types of deeds used in the conveyance of real estate interests are the general warranty deed and the quitclaim deed. The general warranty deed provides the greatest level of protection to the buyer, as it guarantees that the seller holds clear title to the property and that no other claims to the property exist. In contrast, a quitclaim deed transfers only the interest the seller has in the property, if any, without any warranties or guarantees.
When a property is conveyed using a general warranty deed, the seller is legally bound by certain covenants or warranties. These include the covenant of seisin, which asserts the seller's legal right to transfer the property, and the covenant against encumbrances, which assures the buyer that the property is free from liens or other burdens. There are also future covenants, such as the covenant of warranty, which protects the buyer against any future claims to the property.
The quitclaim deed, however, offers no such warranties. It is often used between familiar parties, such as family members, or to clear a title defect, known as a cloud on title. Its simplicity and lack of guarantees make it less suitable for standard property sales, but useful in specific situations.
Furthermore, it is important to note that restrictive covenants can be included in a deed, regardless of the type. These are terms that limit the use of the property, such as maintaining certain aesthetic standards or minimum house sizes, often used by developers to maintain the character of a neighborhood.