Deeds

A deed is a legal instrument used to grant a right. Deeds are part of the broader category of documents under seal. Deeds can best be described as formalised contracts, requiring the agreement of more than one person. Deeds can therefore be distinguished from covenants, which being also under seal, are unilateral promises. The deed is best known as the method of transferring title to real estate from one person to another, often using a description of its "metes and bounds." However, by the general definition, powers of attorney, commissions, patents, and even diplomas conferring academic degrees are also deeds.

Historically at common law, for an instrument to be a valid deed it needed five things:

1. It must indicate that the instrument itself conveys some privilege or thing to someone. This is indicated by using the word hereby or the phrase by these presents in the sentence indicating the gift.
2. The grantor must have the legal ability to grant the thing or privilege.
3. The person receiving the privilege or thing must have the legal capacity to receive it.
4. A seal must be affixed to it. Most jurisdictions have eliminated this requirement and replaced it with the signature of the grantor. However, for conveyances of real estate, most jurisdictions require that the deed be acknowledged before a notary public or a civil law notary and some may require a witness or witnesses in addition.
5. It must be delivered to and accepted by the recipient.

Conditions attached to the acceptance of a deed are known as covenants.

Types of Deeds

General Warranty vs. Special Warranty

In the transfer of real estate, a deed conveys ownership from the old owner (the grantor) to the new owner (the grantee), and can include various warranties. The precise name of these warranties differ by jurisdiction. However the basic difference between them is the degree to which the grantor warrants the title. The grantor may give a general warranty of title against any claims, or the warranty may be limited only to claims which occurred after the grantor obtained the real estate. The latter type of deed is usually known as a special warranty deed. While a general warranty deed is normally used for residential real estate sales and transfers, special warranty deeds are more commonly used in commercial transactions.

Bargain and Sale Deed

A bargain and sale deed is in United States real property law, a deed conveying real property without covenants. This is a deed for which the grantor implies to have or have had an interest in the property but offers no warranties of title to the grantee. This type of deed is typically used in many states to transfer title.  Under common law, this type of deed technically created a use (law) in the buyer who then gets title. Under the Statute of uses, modern real property law disregards this subtle distinction.

A bargain and sale deed is especially used by local governments, fiduciaries such as executors, and in foreclosure sales by sheriffs and referees. The fact that it comes without any warranties from the government means that the new owner may not have good title.  However, if the city did not have good title, then the new landowner may seek a remedy against the local government.

Some states require a specific form to be used. Some states also allow a grantor (or seller) to add warranties. In such case, it may be called a bargain and sale with covenants deed.

Quitclaim Deed

A quitclaim deed is a term used in property law to describe a document by which a person (the "grantor") disclaims any interest the grantor might have in a piece of real property, and passes that claim to another person (the grantee). A quitclaim deed neither warrants nor professes that the grantor's claim is actually valid. By comparison, a grant deed (or in some U.S. States, a warranty deed), which is normally used for real estate sales, contains certain warranties that vary from State to State. Quitclaim deeds are sometimes used for transfers between family members, gifts, or to eliminate clouds on title, or in other special or unusual circumstances.

An example of a circumstance where a quitclaim may be used is where one spouse (grantor) is disclaiming any interest in property that the other spouse (grantee) owns. A quitclaim deed would typically be used in this circumstance.

Another common form of deed similar to a quitclaim deed is the tax deed, which is used by government authorities when selling properties seized for nonpayment of taxes, as the authority will not promise that the buyer will obtain clear title to the property. It may be possible to obtain such assurances, for a fee, from a title insurance company or an attorney who performs a title search.

In most common law jurisdictions, a quitclaim deed is not technically considered to be a deed at all and in some jurisdictions a buyer who receives a quitclaim deed may not be considered a bona fide purchaser for value unless the quitclaim deed meets certain requirements. It fails to meet all five traditional tests of a true deed found in common law. Instead it is considered to be an instrument of estoppel, which means it estops or prevents the grantor of the quitclaim deed from later claiming that he or she has an interest in the property. Title companies may be unwilling to issue title insurance based on a quitclaim deed; thus, quitclaim deed holders may have to obtain further proof that a bona fide sale occurred or institute a "quiet title" action in a court to obtain clear title.

The grantee in a quitclaim deed (or a grant deed or warranty deed) receives no better title than what the grantor possessed.

A Quit Claim Deed does not release the party quitting claim to real property from their obligations under any mortgage or other lien secured against said property. (questionable - needs citation) The most accessible means of being released from one's obligations under a mortgage pursuant to the execution of a quit claim deed is through refinancing. The party to whom the property was conveyed must refinance the property using their own income, assets and credit, and may not use the income, assets or credit of the party who has quit claim.

Deed of Trust

In some jurisdictions, a deed of trust is used as an equivalent to a mortgage. A trust deed isn’t like the other types of deeds; it’s not used to transfer property directly. It is commonly used in some states (California, for example) to transfer title to land to a “trustee,” usually a trust or title company, which holds the title as security ("in escrow") for a loan. When the loan is paid off, title is transferred to the borrower by recording a release of the obligation and the trustee's contingent ownership is extinguished. Otherwise (upon default), the trustee will liquidate the property (with a new deed) and offset the lender's loss with the proceeds.

A trust is created by a settlor, who entrusts some or all of his property to people of his choice (the trustees). The trustees are the legal owners of the trust property (or trust corpus), but they are obliged to hold the property for the benefit of one or more individuals or organizations (the beneficiary, a.k.a. cestui que use or cestui que trust), usually specified by the settlor. The trustees owe a fiduciary duty to the beneficiaries, who are the "beneficial" owners of the trust property.

The trust is governed by the terms of the trust document, which is usually written and in deed form. It is also governed by local law.

In the United States, the settlor is also called the trustor, grantor, donor, or creator.

Recording

Usually the transfer of ownership of real estate is registered at a cadastre in the United Kingdom. In most parts of the United States, deeds must be submitted to the Recorder of deeds, who acts as a cadastre, to be registered. An unrecorded deed may be valid proof of ownership between the parties, but may have no effect upon third-party claims until disclosed or recorded. A local statute may prescribe a period beyond which unrecorded deeds become void as to third-parties, at least as to intervening acts.

Recorder of Deeds

Recorder of deeds refers to the government office tasked with maintaining a record of real estate ownership, as well as other deeds that provide persons other than the owner of a property with real rights over that property.

The office of the Recorder of deeds might also be known as the Registrar-General, Register of Deeds, Registrar of Deeds, Registrar of Titles, Deeds Registry, Deeds Office, or County Recorder, depending on the jurisdiction and custom in the area serviced by the recorder of deeds. In some U.S. states, the function of recorder of deeds is part of the county clerk's responsibilities.

The purpose of a recorder of deeds is providing a single location where information about real rights can be recorded and searched by interested parties. The principals of statutory, case and common law are given effect by the recorder of deeds, in so far as it relates to vested ownership in land and other real rights. Because estate in land can be held in so many complex ways, a single deeds registry provides some stability, even though it cannot "guarantee" those real rights.

The legal certainty provided by a title deed issued under the registration of the recorder of deeds is of great significance to all parties who hold, or wish to acquire rights in real property. Certainty of title is the basis for the investment of massive amounts of money in real estate development for residential, commercial, industrial and agricultural use each year. This is why the meticulous recording of registration information by the recorder of deeds is so important.

The recorder of deeds keeps record of real rights on paper, in the form of old land registers and paper copies of new registry entries, on computer, as well as on microfilm. Each document recorded against title to real estate can be examined and the portion of the bundle of rights that it includes can be determined. These records can assist interested parties in researching the history of land and the chain of title for any property and purpose.

Documents describing real rights that are regularly recorded by the recorder of deeds include deeds, mortgages, mechanics liens, releases and plats, among others. To allow full access to deeds recorded throughout the office history, several indexes are also maintained, which include grantor-grantee indexes, tract indexes, and plat maps.