If you’re looking to purchase a house shortly, you should familiarize yourself with the terms “title guarantee” and “deed guarantee.” The seller transfers ownership of the property to the buyer. Both the grantee and the grantor must remember that a deed is not the same as a title and must be fulfilled. Deeds and titles serve different purposes, so let’s break them down.

To start, let’s first discuss what a deed is.

What Is A Deed Guarantee?

Deeds are legal documents that transfer property from a seller or grantor to a purchaser or grantee. A deed is a legal manuscript that transfers actual property ownership from one person to another. A legal description of the property, including its boundaries, is included in deeds, which the grantor and the grantee sign.

In most cases, a transfer deed involves only the grantor and the grantee, but a third party, the trustee, may also be affected in a deed of trust. A deed of trust appoints a third party, the trustee, to hold legal title to the property until the grantee fulfills the conditions set forth by the grantor. Unless and until all parties sign the deed, it will not be legally binding.

Types Of Deeds

The various kinds of deeds are described below:

General Warranty Deed

A general warranty deed protects the grantee by stating that the seller has a good title and is the only person authorized to sell the property. In addition, the seller or grantor swears that they do not know any potential issues with the property. A mortgage lender is the typical drafter of the general warranty deed.

To protect your interests as a homebuyer, you should study the disclosure rules in your area. Any major structural repairs, any history of violent crime on the property, any persistent neighborhood nuisances like foul odors, and any persistent risks to property, such as flooding, must all be disclosed. Whether or not a home is located in a historic district is information that prospective buyers should be aware of.

Special Warranty Deed

In a special warranty deed, the grantor ensures the recipient that they will receive full ownership of the property. This deed, also known as a Covenant Deed, is typically utilized while selling business assets instead of personal real estate.

Grant Deed

A grant deed may allow a buyer to sell and transfer property, but it does not guarantee that there are no other titles or claims against the property.

Quitclaim Deed

When no monetary consideration is involved in property transfer, a quitclaim deed is used. Common uses for quitclaim deeds include

  • Transfer of family assets from parents to children
  • Individuals’ sales of property to trusts and LLCs
  • Having one spouse hand over their portion of the family’s assets

The deed must be updated whenever there is a change to the owner’s legal name. In a quitclaim deed transaction, the buyer does not enjoy the same protections as they would in a standard real estate purchase.

What Is A Title Guarantee?

“Title” refers to a person’s or business’s legitimate claim to ownership of a particular asset. When one receives a deed to a property, one gains all property rights, including the right to sell the property. A deed is a legal document that officially changes hands when selling property. In contrast to a deed, a title consists not of paper but the rights created by it.

It can be challenging to guarantee a title without a tangible document making it legally binding, which is why a title abstract, which provides an overview of the property’s ownership history, is valuable. Mortgage lenders typically insist that borrowers buy title insurance before they extend a loan to cover the risk of default due to liens or ownership disputes. Potential buyers can conduct a title search to learn about any liens or other claims against the property. The title is free and clear if there are no results in your inquiry.

Know More About Titles

Here are some facts that you have to be familiar with about titles:

Title Search

A title search looks into any potential limitations on a piece of property. Also limiting its possible use are any easements or unpaid debts (liens) attached to the property. A title search will also show if the seller is authorized to sell the property.

In practice, however, only title companies and real estate attorneys typically conduct title searches. A title search is not required when purchasing title insurance but is strongly advised. You can ask for a search for specific information if you like.

Title Insurance

Title insurance protects the buyer from undiscovered flaws or liens on the property. Lenders will always require it, but buyers can also safeguard themselves by getting title insurance.

Experts recommend that buyers either shoulder the cost of this coverage or work out a deal with the seller to assume responsibility for it. There must be title insurance if there is any doubt about who the rightful owner is. Without insurance to protect the purchaser’s mortgage and property investment, the purchaser runs the risk of losing both in case of a dispute.

Abstract Title

An abstract title details the property’s ownership history and any encumbrances, such as mortgages and judgments, that have been filed against it.

Difference Between A Deed And Title Guarantee

Deeds are official legal documents used to transfer property ownership. The deed establishes the owner’s legal claim to the property, but “title” is a mental representation of ownership rather than a physical one.

The rights specified in a given deed may differ from those specified in another deed. An owner with a clear title has full authority over the property. However, the deed could be challenged if a title search was not conducted and the title abstract did not accurately reflect the true state of ownership.


We understand that owning a property is a complicated process and full of jargon. So if you want to familiarize these terms, consider contacting us, reading our blogs, and checking out our Title Guarantee Booklet.

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