There are different types of ownership deeds you may receive as a real estate investor. The types of ownership deeds are general warranty deed, sheriff’s deed, quit claim deed, special warranty deed, tax deed, trustee deed, and certificate of title.
It is important to understand that no matter which ownership deed you receive it is best to have title insurance on it.
Title insurance is a policy that guarantees that the title for the property is clear of liens and/or judgments. It also guarantees that the owner of the property has the right to sell the property.
The title insurance protects the owner and the new owner from losses that may arise from unknown or undisclosed defects in the pas chain of title. Unlike most insurance, title insurance is paid in an one time installment at the closing. This one time fee protects your interest as the new owner and your heirs interest for as long as you own the property.
The title policy is insured by the title company. The title company will provide legal defense against any and all challenges to the title and reimburse the owner against any losses as a result of hidden or unknown defects in the owner’s rights.
Now, that we understand what the title insurance is. Let’s examine the different types of ownership deeds.
As an investor, you may come to own your property through a special warranty deed.
Let examine what happens to get you the special warranty deed. First, there is a sheriff’s deed issued by a judge.
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