Types of Statutory Deeds - What type of deed will I receive when I purchase my home?

Disclaimer: This post does not constitute legal advice. If you need legal advice, please contact an attorney directly.

Types of Statutory Deeds in Florida

A statutory deed is a deed or document whose format is defined by the state law. Florida law provides for a short form of deed in which the covenants or warranties mentioned are implied to exist just as though they were written out in a complete and detailed form.

Four types of statutory deeds exist. These are listed from deeds that offer the most protection to deeds that offer the least protection:

General warranty deed,
Special warranty deed,
Bargain and sale deed, and
Quitclaim deed

1. General Warranty Deed.

The general warranty deed (or sometimes simply a warranty deed) provides the greatest protection to the buyer because the general warranty deed contains all the covenants and warranties available to give the grantee every possible future guarantee to title protection. The general warranty deed is the most commonly used deed in FL. If a real estate sale contract does not specify the type of deed to be delivered, a general warranty deed must be used. The general warranty deed contains the following covenants.

Covenant of seisin. The covenant of seisin (also seizin) is a promise that the grantor owns the property and has the right to convey title to the property.
Covenant against encumbrances. The grantor warrants that the property is free from liens or other encumbrances, except as noted in the deed. This clause gives the grantee notice of all encumbrances (liens, restrictions, and so forth) associated with the property.
Covenant of further assurance. The grantor promises to sign and deliver any legal instrument in the future that might be required to make the title good.
Covenant of quiet enjoyment. The grantor guarantees peaceful possession undisturbed by hostile claims of title.
Covenant of warranty forever. The grantor guarantees to forever warrant and defend the grantee’s title against all lawful claims.

2. Special Warranty Deed.

The grantor guarantees that nothing has been done to encumber or cloud the title during the grantor’s ownership. The grantor defends the title against the grantor’s actions, but not those of the previous owners of the property. This type of deed is usually used by persons acting on behalf of the owner, such as executors.

3. Bargain and Sale Deed.

A bargain and sale deed contains no express warranty against encumbrances. The granting clause usually states “grants, bargains, and sells.” the bargain and sale deed contains the covenant of seisin; however, the grantor does not warrant to defend the title against any further claims or attacks on the title. The bargain and sale deed is sufficient to convey all the title the grantor has, but it does little to protect the grantee from clouds or claims on the title.

4. Quitclaim Deed.

The quitclaim deed provides the grantee with the least protection of the statutory deeds. Quitclaim deeds contain no covenants or warranties, and they convey what interest (if any) the grantor may have when the deed is delivered. The grantor makes no warranties about the quality or extent of the title being conveyed. This form of deed is useful for clearing existing or potential clouds on the title. A cloud might be some unreleased lien or encumbrance that may superficially impair or cast doubt on the title’s validity, such as a recorded mortgage that has been paid in full, but with no satisfaction of mortgage recorded. To clear the title of these possible trouble spots, the grantor releases any claim or interest in the property. Instead of the usual words grants, bargains and sells the quitclaim deed uses the words remise, release, and quitclaim. The quitclaim deed does not contain a covenant of seisin. This allows the grantor to sign a deed transferring any and all interest, w/o claiming ownership of any right of title whatsoever. The grantor does not warrant to defend the title interest conveyed or to transfer a valid interest.

Although, the above mentioned are the most common deeds, others exist as well. These addition deeds are to serve circumstances the above cannot cater. They are described in the following paragraph.

Special Purpose Deeds

Legal problems may be encountered when a property is being conveyed from one owner to another. Several types of deeds have evolved to provide solutions for these and other situations in which an owner cannot or refuses to sign a deed.

Personal representative’s deed. A personal representative is an individual either appointed by will or by order of a court to settle the estate of a deceased person. The testator typically IDs a trusted person to serve as a personal representative who will be charged with carrying out the provisions of the will under the direction of the court in which the will was probated. If an owner should die without leaving a will, the probate court having jurisdiction will appoint a personal representative to settle the decedent’s affairs. A personal representative’s deed is used to formalize and record the transfer of title. It should show the full consideration paid for the property and contain a covenant of no encumbrances.
Guardian’s deed. A guardian acts on behalf of a minor (or other ward) and is also a fiduciary. Normally, the permission of a court is required for a guardian to sell or convey property belonging to the minor. When authorized by the courts, a guardian’s deed legally conveys the minor’s property.
Committee’s deed. One of the essential of a valid deed is a competent grantor. When an owner is declared legally incompetent or is committed to an institution, a committee is often appointed by the court to administer the affairs of the incompetent. The committee functions under the direction of the court if conveying or disposing of the incompetent estate. All members of a committee must sign the deed. A committee also must adhere to fiduciary disclosure requirements.
Tax Deed. The instrument used to convey title to the property sold for nonpayment of taxes. No covenants are given, and the buyer assumes all risks for title defects. Extreme caution should be taken when purchasing property at a tax sale.

Definitions:

Deed - a written document that transfers title to real property from one person to another.
Title - a legal concept signifying ownership of the collection of rights
Grantor - seller of a property; a person who conveys title to a property.
Grantee - a buyer of a property; a person who receives title to a property.
Consideration - anything of value being given in exchange for the title: money, jewelry, or a gift of any kind.
Testator - a person who makes a will.
Personal Representative - administrator of a deceased person's estate.
Encumbrance - any lien, claim or liability affecting the title or attaching to real property.
Probate - legal steps taken via a probate court by which a deceased person's estate is distributed to heirs and designated beneficiaries. This process also pays debt owed to creditors.

Disclaimer: This post does not constitute legal advice. If you need legal advice, please contact an attorney directly.