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Ask Mike
The information contained in the ASK MIKE column is
provided for general information purposes only and is not intended to be a legal opinion
nor legal advice nor is it intended to be a complete discussion of all issued related to
the law. No attorney client relationship shall be deemed to arise hereunder. Every
individual's factual situation is different and you should seek independent legal advice
regarding specific situations. All information contained within pertains only to
California law unless otherwise noted.
Deeds
Question 1
Question 2
Question #1
Question:
I'm trying to learn more about real estate and I've heard there are two different kinds
of property deeds in California. Can you explain the difference?
Answer:
A grant deed is the most common deed used in California because of the implied
warranties which protect the grantee. A grant deed implies that the grantor has not
given any title or interest in the property to anyone else and that the property has no
encumbrances or loans on it, except for those specifically disclosed in the purchase and
sale agreement. With a grant deed, the grantor typically gives the property free and clear
to the grantee. More than 90
percent of the deeds recorded in the state are grant deeds.
If the grantor breaches the implied warranties in a grant deed - for instance, by not
disclosing an unpaid debt on the property - the grantee may rescind the deal and get any
payment back, or may sue for any loss of value that occurred.
The less common type of deed, a quit claim, offers no warranties or protections to the
grantee. It simply grants whatever rights the grantor has, if any, to the grantee. You can
issue a quit claim on the Brooklyn Bridge if you want, even though you own zero interest
in it.
A quit claim plays an important role in some property sales. For instance, if a
married person is selling sole and separate property, the title company frequently will
ask the seller to provide a quit claim from the spouse. This quit claim reassures the
title company that the spouse will not claim half-ownership once the sale occurs.
Question #2
Question:
I'm trying to learn more about real estate and I've heard there are two different kinds
of property deeds in California. Can you explain the difference?
Answer:
A grant deed is the most common deed used in California because of the implied
warranties which protect the grantee. A grant deed implies that the grantor has not
given any title or interest in the property to anyone else and that the property has no
encumbrances or loans on it, except for those specifically disclosed in the purchase and
sale agreement. With a grant deed, the grantor typically gives the property free and clear
to the grantee. More than 90
percent of the deeds recorded in the state are grant deeds.
If the grantor breaches the implied warranties in a grant deed - for instance, by not
disclosing an unpaid debt on the property - the grantee may rescind the deal and get any
payment back, or may sue for any loss of value that occurred.
The less common type of deed, a quit claim, offers no warranties or protections to the
grantee. It simply grants whatever rights the grantor has, if any, to the grantee. You can
issue a quit claim on the Brooklyn Bridge if you want, even though you own zero interest
in it.
A quit claim plays an important role in some property sales. For instance, if a
married person is selling sole and separate property, the title company frequently will
ask the seller to provide a quit claim from the spouse. This quit claim reassures the
title company that the spouse will not claim half-ownership once the sale occurs.
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