The basic understanding of the various real estate deeds is a must when transferring title and ownership to real estate during a divorce situation.
A real estate deed is a legal instrument (document), almost always in writing, that passes an interest in real estate from one person to another person. In short, when real estate is sold or given to someone, it is done with a deed. The new owner of the real estate receives their rights to the property and any title warranties given by the previous owner from the deed.
Quit Claim Deed: Title companies may require a quit claim deed in order to clear up what they consider to be a cloud on the title prior to issuing title insurance.
Warranty Deed: Of all the real estate deeds, general warranty deeds provide the most protection to the grantee (buyer). This type of deed guarantees that the grantor (seller) holds clear title to a piece of real estate and has a right to sell it to the grantee.
Grant Deed: A grant deed is a legal document that is used to transfer (convey) rights in real property from one entity or
person (the grantor) to another (the grantee).
Correction Deed: Once a deed has been recorded, it is part of the public record and cannot be changed. It is possible, however, to amend that record by adding a newly executed deed, usually called correction or corrective deed, deed of correction or, in some states, deed of confirmation.
Before making any changes to how the marital home is vested in title, it is important to not only understand how to transfer current ownership but to also know exactly how title is currently held to avoid making errors in title transfer.
For more information on understanding how the transfer of ownership and title is affected in a divorce situation, please contact a Certified Divorce Lending Professional in your area.
It is always important to work with an experienced mortgage professional who specializes in working with divorcing clients. A Certified Divorce Lending Professional (CDLP) can help answer questions and provide excellent advice. To find a CDLP in your area, please click here.
This is for informational purposes only and not for the purpose of providing legal or tax advice. You should contact an attorney or tax professional to obtain legal and tax advice. Interest rates and fees are estimates provided for informational purposes only, and are subject to market changes. This is not a commitment to lend. Rates change daily – call for current quotations.