The guarantees that a Michigan warranty deed provides are called covenants. Warranty deeds guarantee that the title has no liens, debts, or encumbrances, and the grantor will cover any title issues that may arise in the future. This warranty extends back through the property’s history, addressing any problems with ownership even before the grantor acquired the property. Warranty DeedĪ warranty deed provides the highest form of protection to a grantee with its unlimited warranty. In foreclosures, for example, a covenant deed can expedite the sale by eliminating the need for the bank or financial institution to resolve title problems that existed before the foreclosed property was taken from the previous owner. The grantor is not liable for any hidden or pre-existing issues on the property before he/she took ownership.Ī covenant deed is the most convenient and practical choice to transfer a title for a grantor who has no intention of occupying the property and has never utilized it in the past.
COVENANT OF SEISIN REAL ESTATE FREE
A Michigan covenant deed ensures that the property is free from title problems only within the period the grantor became the owner.
Unlike quitclaim deeds, a covenant deed provides a certain level of protection to the grantee. Such cases usually happen when the property is transferred to: A quitclaim deed does not guarantee a clean title, which means that the grantor is not held responsible for any claims or interest against the property transferred.ĭespite having no guarantee, quitclaim deeds are still considered legal in Michigan because there are instances when the grantee won’t need protection over title problems. Different Types of DeedsĪmong the Michigan deeds, quitclaim deeds provide the least protection to the grantee.
Depending on the kind of transfer, one type of deed can be more beneficial than the other. These deeds include quitclaim deeds, covenant deeds, and warranty deeds. There are three main types of deeds used in Michigan that vary on the warranty they provide to the parties involved. In cases where the property has two or more owners, both (or all) of them must affix their signatures to the deed before it can be legally transferred to the grantee. In Michigan, a deed must be signed by the grantor, notarized, and recorded to the Register of Deeds for the property transfer to be considered valid and effective. The grantor is the owner transferring the real estate, while the grantee is the individual or organization receiving the property. Generally, the parties involved in the property transfer include the grantor and the grantee. Overview of Types of Deeds in MichiganĪ deed is a document required for any transfer of property ownership or interest between two parties. In this article, you’ll get to know each type of Michigan deed and learn the difference between them. There is more than one type of deed in Michigan, with each having a different kind of guarantee it provides to the parties involved in the property transfer. The deed must contain all the required elements, including the name of the parties involved, the description of the property, and other important information. For instance, if you decide to sell your home to another person, a deed is necessary for the sale to be considered legal. In real estate, a deed is an instrument used to convey the title of a property, either by selling, gifting, or other means of transfer.
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