| 1. |
General
Warranty Deed |
| |
A. |
Most common
form of deed in Ohio. If there is just
one buyer, title will, upon death, pass
to such owner's heirs unless otherwise
provided for by the owner's will. If
there is more than one buyer, then a
Tenancy-in-Common among owners is created,
which means that each buyer owns an
"undivided" interest in the
property. Upon the death of one of the
owners, title to their "undivided"
part interest will pass to that owner's
heirs unless otherwise provided for
by the owner's will. |
| |
B. |
Seller warrants title
to be free and clear except as stated
in deed. Seller takes on responsibility
for soundness of entire chain of title. |
| |
C. |
Although seller's warranties
are desirable, title insurance has reduced
their importance. Buyer and lenders
generally rely on title insurance to
protect their investment. Therefore,
title insurance is also a benefit to
the seller as it may reduce actual exposure
if old title defects arise. |
| 2. |
Limited Warranty
Deed |
| |
A. |
Special circumstances -
seller only warrants title as to period
that he held title - not responsible
for matters previous to seller's acquisition. |
| |
B. |
Often used on commercial
transactions where seller and buyer
agree to rely on title insurance for
protection but require seller to account,
if necessary, for matters occurring
during seller's ownership. |
| |
C. |
Also may be used where
seller is not in a position to make
warranties as to entire history of title.
Perhaps title taken by foreclosure,
in settlement of a debt, etc. |
| |
D. |
Otherwise, same as General
Warranty Deed. |
| 3. |
Warranty
Deed creating Tenants in Common with
the right of Survivorship
(may also be known as "Joint and
Survivorship Deed") |
| |
A. |
Used when two or more persons
are buyers. |
| |
B. |
Upon death of one of the
owners, interest is not considered an
asset of the estate but title to the
interest transfers "by contract"
to survivor(s). Such interest, however,
must be considered in the decedent's
estate for Ohio Estate Tax purposes
(and for federal tax purposes) as if
it was an asset of the estate. |
| 4. |
Quit Claim
Deed |
| |
A. |
Simplest form of deed as
it only conveys whatever interest seller
owns or may own; no warranties are expressed
or implied. |
| |
B. |
Creates tenancy-in-common
if more than one buyer is involved;
similar in this respect to General Warranty
Deed. |
| |
C. |
Buyer has no recourse against
seller for defects in title. Title Insurance
advisable whenever buyer accepts Quit
Claim Deed. |
| 5. |
Special Purposes
Deeds |
| |
A. |
Other types of deeds are
necessary under particular situations,
but since their application is limited,
no description need be given here. |
| |
B. |
Such special purpose deeds
include Sheriff's Deed (foreclosure),
Executor and Administrator's Deed and
Guardian's Deed (Probate Court), Trustee's
Deed (Bankruptcy) and Auditor's Deed
(tax sale). |
| |
|
|
| For further
explanation or advice as to the use
or preparation of any of the foregoing,
it is suggested that you consult an
attorney. |
