When you are converting the ownership of your real estate to somebody else, you are removing yourself from the title. There are many ways of doing this. You can sell it, gift it to somebody or it could be that you have a will in place that will decide the ownership after you have passed on. One of the most important things that you need to do in this process, is determining the kind of deed that you will need to get this across. Here are some helpful tips that will give you a hand in doing so.
Understand What a Deed Is
A deed is basically a legal document that will pass on the ownership of your real estate to another person. There are many types of deeds that you can do depending on two factors. One would be the person that you are giving the possession to and the other would be the degree of protection that you wish to grant them when it comes to the real estate. The deed must be in writing and it should also comprise of certain vital information for it to be considered legally valid.
Think About a General Warranty Deed
A good option of a deed for such a purpose would be the general warranty deed. Here the real estate will be given the new ownership along with certain other covenants that go with the title. Covenants are basically promises made by the seller or the original owner to the buyer or the grantee. You can ideally get the help of a conveyancer cranbourne or any other location for this purpose. If you are going to use this type of deed, these are the promises that you will be making. You will promise and certify that at the time of converting the ownership you are indeed the lawful owner of the said real estate, you also promise that there are no encumbrances related to the real estate and that you will defend the title so that the new owners can enjoy uninterrupted and peaceful possession of their real estate. This is a good way to go if you are selling the real estate to somebody who is not related to you. However know that you are to be held accountable should any discrepancies come up later.
Special Warranty Deeds
The special warranty deed is similar to the general warranty with the exception that here you will only be promising to protect the title against any discrepancies that happen due to your own actions or negligence alone. In other words, you will be protecting yourself against any issues that will occur because of actions and negligence that happened before you came into possession of the said real estate. You can use this type of deed when you are unfamiliar with all of the history of the real estate and you can do so when selling it to somebody unfamiliar. Of course, buyers will be concerned that you are not willing to give in a general warranty deed but many of them will be more than happy to know that you take accountability for any faults on your end.Read More →