When taking or conveying title or ownership to real estate in Florida, it’s important to understand the best type of deed to be utilized.
Typically, in any transaction where money will be exchanged for an ownership interest in real estate, a buyer should require and a seller should be obligated to convey the real estate ownership interest by way of a warranty deed.
In those situations where no money will be exchanged for the real estate ownership interest or the ownership interest is unknown (no title search or examination was done), a quit claim deed may be more appropriate.
The primary distinctions between a warranty deed and a quit claim deed are the warranties that are provided by the person conveying the real estate ownership interest.
Do you need help closing your real estate transaction?
Under a warranty deed, the grantor (the person conveying the real estate ownership interest) is representing to the grantee (the person receiving the real estate ownership interest) that the grantor is the owner of the real estate ownership interest and will defend it against all other parties.
Whereas a quit claim deed is effectively a conveyance of the real estate ownership interest from the grantor to a grantee without any representation of ownership and no warranty of title – it is essentially conveying whatever ownership interest, if any, the grantor may have in the real estate.
It is important to also note that certain property related ownership rights afforded under Florida law by a grantee do not apply when a quit claim deed is the basis for the real estate ownership interest.
It should also be noted that there are limited or special warranty deeds that make limited representations and warranties as to the the title of the real estate ownership interest.
Therefore, given the varying differences and distinctions between the types of deeds used in Florida, you should always seek the advice of a real estate attorney before relying upon or using either a quit claim or a warranty deed.