In New York residential real estate, property owners obtain a deed. This deed is a formal document that shows their ownership of the property in question. There are actually three different types of residential deeds that one may have. These include a general warranty deed, a special warranty deed, and a quitclaim deed.
General warranty deed
A general warranty deed is one of the most common that people will see. This deed guarantees that the title is good and free from any encumbrances. A general warranty deed is what gets transferred when a person purchases a residential real estate property from an existing owner. As part of a general warranty deed, the grantor guarantees that they will protect the grantee against any past claims on the property.
Special (limited) warranty deed
A special warranty deed, also referred to as a limited warranty deed, is meant to provide fewer warranties than the general warranty deed. For this type of deed, the grantor does not guarantee a good title prior to their ownership of the property. If there were encumbrances on the title prior to when the grantor bought the property, the grantor is not responsible for them after transferring the ownership to the grantee.
A quitclaim deed is a specific type of deed that does not contain any sort of warranty. This type of deed is typically used to quickly transfer property to a buyer. As a buyer, it’s important to note that you have no protections from encumbrances on the deed or any claims of ownership from prior people.