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There are several ways to hold title to your home:

  1. Sole Ownership - No other names but yours.
  2. Joint Tenancy with the right of survivorship. If one passes away, the other gets it without the property passing through probate. (The  drawback is if the surviving spouse has a lot of debt, this may not be the best way). The survivor files an addifidavit saying the other titleholder is dead, attached the death certificate and gets the property.
  3. Tenancy in common. If one passes away, the property is distributed according to the deceased's will or state's law (if will is unavailable).

Type of Deeds:

Statutory Warranty Deed has a warranty that is defined by the statute. That warranty is: I own the property and I’m conveying it to you, free and clear of any interest, lien, restriction, etc…that would limit your right to use the property, subject to governmental powers. 

Special Warranty Deed is like a Statutory Warrant Deed except the seller typically limits the time frame of the warranty to only that time while the lender was in title to the property. Matters attaching before the current seller gained a vested interest in the property would be excluded from the warranties.

Bargain & Sale Deed contains no warranties, except the seller warrants that they own the property.

Quit Claim Deeds promise nothing. Not even that the person conveying has any interest to the property at all. For instance, I could Quit Claim Deed the Space Needle to you, but that doesn’t mean that I have any interest in the Space Needle.

It is common to order Preliminary Commitment early on during the process. The preliminary commitment is a device that lets the soon-to-be insured know what the title company will insure and what it will not. The title insurer performs a “title search” of public records pertaining to the subject matter property. The preliminary commitment lists liens, easements or other encumbrances of public record. Ensure that the number of liens and vesting match with what was told by your client. Once the new lender and loan number have been ascertained, the final Title Policy will be issued. The final Title Insurance Policy is a a contract of indemnity effective as of the transaction closing date against these items.

 

Posted by Sam Kader on May 29th, 2010 8:43 PM

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