When you purchase a home in Colorado ownership is transfered by a deed. This document is prepared by the title company for the home buyers. It proves that they now own the property and that any monetary encoumbrances from the seller have been taken care of.
In Colorado homes are transfered from the Seller to the Buyer at closing with a Deed. There are a few types of Deeds that are typically used.
In a Special Warranty Deed the seller (grantor) says, in effect, to the buyer (grantee), “I only warrant (guarantee) that I have done nothing to make the title bad or defective or encumbered while I have owned it.That I have good, right and lawful authority to sign and deliver this deed; that the title which this deed conveys is good and is clear in so far as my actions are concerned.”
In a General Warranty Deed, the seller (grantor) who signs the deed says, in effect, to the buyer (grantee), “Iwarrant (guarantee) that I have good title to the land, that there are not material defects in my title and no outstanding interests.
That there are no mortgages, unpaid taxes or other liens or encumbrances outstanding on the land; that I have good, right and lawful authority to sign and deliver this deed; and that this deed conveys to the purchaser good, indefeasible title to the land.”
These are deeds executed by a court appointed fiduciary and must be backed by Letters of Appointment.
These only convey the interest in the property which the estate controls and lack the same warranties as stated in the Bargain and Sale Deed above. These deeds cannot be prepared by the title insurance companies.
In a Quit Claim Deed there are no warranties or representations or even an implication that the grantor owns or holds title to the land or to any particular interest in it.
In such a deed the grantor simply states to the grantee, “I surrender to you and quit claim and abandon all claims and interests, if any, which I may have in the land described herein.”
While Quit Claim Deeds are seldom used to convey titles, in most such deeds, like Bargain and Sale Deeds, will pass title to the grantee if the grantor owns the land.
The team at Smart Start Homeowners are experts when it comes to helping first time home buyers in Colorado. We are with you every step of the way. Find out more now.
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