Legally reviewed by:
King Law
May 16, 2024

A deed is an important legal document that helps transfer ownership of real estate from a seller (grantor) to a buyer (grantee). In real estate transactions, a title company investigates the property’s ownership history by examining both current and records. Their goal is to detect any problems or issues that may have affected the property’s ownership in the past.

When homeowners in North Carolina buy property, they can choose from three types of deeds: general warranty deeds, special warranty deeds, and quitclaim deeds. Among these options, general warranty deeds provide the highest level of protection to the buyer.

General Warranty Deed

In North Carolina, the general warranty deed is the most popular type of deed used when buying property. This special deed offers the buyer extra protection by ensuring that any problems with the property’s ownership, no matter when they happen, are the seller’s responsibility. This means that, unlike other deeds, the buyer is protected even after the seller has sold the property.

Moreover, with a general warranty deed, the seller promises that they are the rightful owner of the property and has the legal right to transfer its ownership. They also guarantee that there are no hidden issues or claims on the property, as everything is openly disclosed in the deed.

Special Warranty Deed

In North Carolina, the special warranty deed is different from the general warranty deed because it offers less protection to the buyer. With a special warranty deed, the seller only guarantees that the title of the property is free from any defects or claims that may have occurred when the seller owned the property. This means that if any problems with the title come up from before the seller owned the property, the seller is not responsible for them. In contrast, a general warranty deed provides broader protection as the seller is accountable for any issues with the title, even if they happened before they owned the property. This puts the buyer at risk because they will not have any legal protection if any issues with the property’s title come up after the real estate transaction is completed.

Quitclaim Deed

In North Carolina, the quitclaim deed works differently compared to other types of deeds. With a quitclaim deed, the seller does not promise or guarantee anything to the buyer about their ownership of the property or whether the property’s title is valid.

This kind of deed is often used when transferring property between family members or spouses, and it is often done without any money being exchanged. It is important to understand that if you receive a property through a quitclaim deed, you take on all the risks that come with the property’s title. Unlike other deeds that provide more protection, a quitclaim deed only transfers whatever ownership interest the seller has in the property without any guarantees.

Ultimately, a warranty deed is an important document in real estate that guarantees the property has a clear title, meaning there are no unpaid debts or mortgages attached to it. To provide the best protection for the buyer, a combination of a warranty deed, a title search, and title insurance is used. This comprehensive approach ensures that there are no existing problems with the property’s title and guarantees that there are no existing issues with the property’s title and gives the buyer peace of mind that no future problems will arise concerning the property’s ownership.

King Law Offices is a full-service law firm with an outstanding team of professionals who work diligently, creatively, and compassionately on behalf of our clients each day. If you have a current conflict with your title or your deed, contact King Law at 888-748-KING for a consultation. We have offices located across western North Carolina and upstate South Carolina. We are here to serve you and to guide you as we navigate this journey together.

Legally reviewed by:
King Law
Carolina Attorneys
May 16, 2024

This blog post has been reviewed and verified by legal experts at King Law. Our team is dedicated to providing premium legal services with compassion, innovation, trust, and advocacy. Serving Western North Carolina and Upstate South Carolina, we offer flexible meeting options and strive to exceed client expectations with high-quality legal representation and exceptional client relationships.

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