• A deed is legal proof of property ownership.series object on white: isolated - Signature image by Aleksandr Ugorenkov from Fotolia.com
  
  Deeds are legal documents used to signify the transfer of property from the legal owner to another person. The deed is not a sales contract but the actual conveyance of ownership. Regardless of who the parties are to the change of ownership, there must be a deed filed and recorded. The two basic types of deeds are warranty and quit claim deeds.
  
  

Description

• Property transferred from the legal owner to another person or legal entity must be described correctly in the legal documents that record the sale or transfer. A deed documents all of the boundaries, landmarks and other identifying information. The legal description must be exactly correct so there are no problems at a later date when the new owner decides to build a fence or build a new house on the property. A deed identifies any rights of way that are associated with the property, and all of the parties that are involved in the change of ownership. "Grantor" is the legal term used in a deed to indicate the person transferring the property, while the grantee is the person or entity receiving the property.
  
  

Warranty Deed

• A warranty deed is used when the grantor is able to guarantee the title to the property is free and clear of all other legal claims. A warranty deed is the most common form of deed used to transfer real estate. In legal terminology, the grantor conveys the property to the grantee. A warranty deed is processed through a title company that researches the history of the property, and for a fee provides a warranty deed that guarantees the property to be free and clear of all prior legal claims. If at a later date a person or entity comes forward with a valid legal claim, the title insurance that was issued will financially protect the mortgage company and the purchaser of the property.
  
  

Quit Claim Deed

• A quit claim deed is used to transfer property when no sale takes place, as when the requirements of a will need to be fulfilled or when a person gets married and wants to put his spouse's name on the deed. A quit claim deed would also be used to change names on the title of the property as the result of a divorce. When you transfer a piece of property with a quit claim deed, you are saying to the person who is added to the deed that to the best of your knowledge there are no other legal claims against the property. However, there are no guarantees the land or home is free from all legal claims. Quit claim deeds are particularly useful when real estate is transferred from one family member to another and both parties know that the property has never been owned or obligated to anyone outside of the family.