A deed is used to transfer real estate legally. Real estate property includes land, and anything attached to it, such as structures or roads. A deed must identify the grantor (seller) and grantee (buyer) and provide a sufficient description of the property to be legally enforceable.
In Louisiana, voluntary contracts between the owner and the buyer are the most popular way to transfer property ownership. A legally binding contract (a simple act) transfers real estate ownership. The buyer and the seller must agree on all of the contract’s listed terms for it to be deemed genuine or authentic.
The Typical Forms of Deeds
Deeds are categorized into several groups, as general warranty, special/limited warranty, quitclaim, and special purpose.
General Warranty Deed
A general warranty deed in Louisiana ensures that the seller has a good title. The seller also pledges to defend the buyer from any allegations. A general warranty deed enables the seller to transfer the title of a property while assuring the buyer that they have the right to sue them if issues develop following the sale. This kind of deed, which dates back to the beginning of the property, provides maximum security for the buyer.
Special Warranty Deed
Similar to a standard warranty deed, a special deed ensures a property is free from flaws. A special warranty deed only protects against title issues when the seller holds the property; it does not address issues before that time. As a result, the buyer is responsible for problems caused by the prior owners.
In Louisiana, quitclaim documents are frequently used to transfer property between relatives. They enable sellers to add their spouse to the title, parents to transfer real estate to their children, and siblings to exchange property.
A quitclaim deed does not change an existing mortgage. It simply affects the ownership of the property and the people listed on the deed or title.
Special Purpose Deeds
Special purpose deeds are employed in cases where the deed comes from a person acting in an official role or in connection with court proceedings. Most special purpose deeds are essentially quitclaimed deeds and provide the grantee with little to no protection.
A Bond for Deed Agreement
For residences that can be difficult to sell or finance, a “bond for deed” arrangement is used. The buyer can pay the purchase price in installments, and the title is transferred once all payments have been made.
Bond for Deed agreements makes it possible for buyers and sellers to complete the house sale process considerably more quickly and adaptably than they typically might with a bank loan. However, the title might be lost if payments are not completed.
You should contact a knowledgeable real estate attorney if any transaction involving deeds arises. Important legal papers that influence ownership interests and rights should be in the hands of the right attorneys.