Can A Deed Type be Changed?

Hi All,
Question from a newbie.
If a property was conveyed via a Special Warranty Deed, does the deed type need to remain the same when the property is flipped? If it can be re-conveyed to a new deed type, what needs to be done in order to do so?

Topic

[Neil HParticipant March 19, 2019 at 6:36 pm Post count: 142]

#20809

Yes, a deed type can change when sold to a new owner. It really depends on the situation and the intent of the seller and buyer. The type is changed literally when the new deed is drafted and is the basis of the type of warranty you’re giving the buyer.

For instance, many here recommend buying vacant land on a warranty deed but selling it on a special warranty deed (to limit liability). But others may choose to buy and sell on a warranty deed, especially when a title closing and title insurance is involved. In some cases, the buyer will insist on a warranty deed.

Finally, most people would agree that you should never buy or sell on a quitclaim deed — that’s generally reserved for passing property between family members or from an owner to a trust or LLC. A seller who states they will only sell you a property on a quitclaim deed is a major red flag and should be avoided.

Just google ‘types of deeds’ + the state where you’re buying land to get a sense of how they differ.

[Roni KanterParticipant March 19, 2019 at 7:00 pm Post count: 13]

#20810

Hi Neil,

Awesome! I thought that going through the title process might be the key. Cool!
Have you ever had a buyer who wanted to go through title when you never used a title company for the original purchase?
I heard Jill and Steven mentioned that we can still use a title company even after a purchase. Did I hear that correct?

[Roni KanterParticipant March 19, 2019 at 9:42 pm Post count: 13]

#20812

Wow! Great info, thank you Neil! I greatly appreciate the time you put forth in providing me this valuable information. Thank you so very much!!

[Kevin FarrellModerator March 20, 2019 at 11:14 am Post count: 1265]

#20818

Roni – I have purchased land with a notary and then sold it by closing in a title company. The title company will gladly take your money. Only problem is that if there is any issues on the title work, it will slow down the closing and could even kill the deal (depending on how bad the problem is).

When I have requested to get “title Insurance” after a cash purchase I was told that they could do the preliminary title report and then would wait for the sale closing to complete the title policy, etc. This may depend upon the Title Company that you ask.

Kevin
www.FarrSyght.com Deal/Data Review

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