Types of Deeds
Three Deeds of Conveyance
Even if you have never bought or sold real property you have likely heard of a “deed.” A deed is a legal document that serves to convey ownership interests in property. In North Carolina, there are generally three types of deeds used to convey real property: General Warranty Deed, Special Warranty Deed, and Non-Warranty Deed.
A General Warranty Deed is a deed in which the party conveying the property (the “Grantor”) warrants and guarantees to the party receiving the conveyance (the “Grantee”) that the title to the property he is conveying is good and unencumbered as against all persons. With a general warranty deed, the grantor covenants against title defects created both by himself and all prior titleholders. This warranty is not implied in a deed and must be expressly stated in the deed.
A Special Warranty Deed is one in which the grantor warrants and guarantees to his grantee that the title he is conveying is free from any defects or encumbrances that have arisen since the grantor acquired the title. The warranty under this deed is limited only to those title defects that may have arisen by, through or under the grantor. Unlike the general warranty deed, the special warranty deed’s warranty does not extend to defects potentially made by prior title holders. Like the general warranty deed, the warranty is not implied in the special warranty deed and must be expressly stated in the document.
A Non-Warranty Deed, also referred to as a Quitclaim Deed, is one that purports to convey only the grantor’s present interest in the land being conveyed, if the grantor has any interest. There is no warranty from the grantor, but merely transfers whatever interest the grantor may have in the land described. The quitclaim deed is often used as a type of “corrective deed” to clear up possible defects in title; the grantor relinquishes any interest that the grantor may still have in the land left because of a defect in a prior conveyance. In other instances, a grantee should be wary of quitclaim deeds because the grantor is making no warranty that he has title and the grantor may later be found not to have any actual title to convey thereby invalidating any interest claimed by the grantee.