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Types of Deeds
General Warranty Deed
This is the most common form of deed in Ohio. The seller warrants title to be
free and clear except as stated in the deed. The seller takes on responsibility
for soundness of the entire chain of title. Although the seller’s warranties
are desirable, title insurance has reduced their importance. Buyers and lenders
generally rely on title insurance to protect investments. Therefore, title
insurance is also a benefit to the seller as it may reduce actual exposure if
old title defects arise.
Limited Warranty Deed
In special circumstances, the seller only warrants title as to the period that
he or she held title and is not responsible for matters previous to the
seller’s acquisition. A limited warranty deed is often used on a commercial
transaction where the seller and buyer agree to rely on title insurance for
protection, but require the seller to account, if necessary, for matters
occurring during the seller’s ownership. This form of deed may also be used
when the seller is not in a position to make warranties as to the entire
history of the title.
Quit Claim Deed
This is the simplest form of deed as it only conveys whatever interest the
seller owns or may own. No warranties are expressed or implied. The buyer may
not have recourse against the seller for defects in title; therefore, title
insurance is advisable whenever a buyer accepts a quit claim deed.
Joint Tenants with the Right of Survivorship Deed
This deed is used when two or more persons acquire title to real esate. Each
has an undivided percentage interest. Upon the death of one of the owners,
interest automatically passes to the surviving tenant(s).
Special Purpose Deeds
Other types of deeds are necessary under particular situations, but a special
purpose deed’s application is limited. Such special purpose deeds include a
sheriff’s deed (foreclosure), executor’s deed, administrator’s deed and
guardian’s deed (probate court), trustee’s deed (bankruptcy) and auditor’s deed
(tax sale).
Transfer on Death Deed
Effective in 2000, the property owner may designate on the deed the party or
parties to whom title transfers upon the death of the current owner. This is
similar to naming a beneficiary. This form of deed does not create a present
interest in the real estate for the beneficiary, but upon death of the property
owner, it transfers immediately to said beneficiary, thus avoiding probate.
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