9.C.2 Statutory Deeds

Covenant against encumbrances

Guarantees: there are no encumbrances other than those stated in the deed.

TYPES OF STATUTORY DEEDS

A statutory deed is a concise form which offers the same legal protections as a more detailed form that spells out all the rules and restrictions concerning the use of a piece of property. The 4 types of statutory deeds are: 1. General warranty deed 2. Special warranty deed 3. Bargain and Sale deed 4. Quitclaim deed When selling a condominium, it is important to be aware of the fact that the deed must be recorded in the public record together with the notarized, original approval of the condominium or homeowner association.

Covenant of seisin (or seizin):

Guarantees: Grantor guarantees he owns the property and the right to dispose of it. If the property is mortgaged, that is not a breach of the covenant.

Covenant of quiet enjoyment

Guarantees: peaceful enjoyment of the property, without fear of future claims on the title.

Covenant of warranty forever

Guarantees: that the grantee shall have title and possession to the property

Covenant of further assurance

Guarantees: that the grantor will procure and deliver to the grantee any subsequent documents necessary to make good the grantee's title.

LEGAL REQUIREMENTS

In Florida, the general warranty deed is used to transfer interest in real property unless otherwise specified on the contract. Recording the deed with the Clerk of the Circuit Court constitutes constructive notice of the transfer in the interest of the property. Before the Clerk of the Court can record the deed, it must be signed by the grantor, witnessed, and notarized by a notary. Florida charges to record the deed: A. Recording fees: These vary from county to county, usually $6 per page. B. Stamp Tax on the deed: These are 70 cents for each $100 increment or fraction of the sale price. Example: A $250,000 home requires $1750 in stamps. (250,000 /100 = 2500 X .7 = 1750) These charges are included in the closing costs.

3. Bargain and Sale Deed

The bargain and sale deed is also mostly used in business, but is not that common. This kind of deed does not provide any defense from potential future attacks against the title. A bargain and sale deed consists of a granting clause, habendum clause, and covenant of seisin. It conveys whatever title the grantor has, without further promises or guarantees.

1. General Warranty Deed

The general warranty deed is a kind of statutory deed that gives the grantee the most protection. The grantor agrees to protect the grantee against any claims to the property's title. The general warranty deed is the most widely used instrument to transfer residential real estate in Florida. It contains a series of covenants and warranties that minimize the possibility of future claims against the title: Types of Covenant: Guarantees Covenant of seisin (or seizin) Covenant against encumbrances Covenant of quiet enjoyment Covenant of further assurance Covenant of warranty forever

2. Special Warranty Deed

The special warranty deed does not offer as much protection to the buyer as the general warranty deed. The grantor in a special warranty deed warrants or guarantees the title against defects arising after the grantor acquired the property and not against defects arising before that time. The grantor warrants the title ONLY against his potential future acts or the ones of his successors and agents or assignees. The grantor does not promise to provide any further assistance to defend the title.This deed is mostly used for business transactions, such as developers selling their own properties.

4. Quitclaim Deed

With a quitclaim deed, the interest that the grantor holds in the property is conveyed to the grantee as is, with no further warranties. The quitclaim deed does not state the nature of the rights conveyed or warrant ownership. Literally, the seller only QUITS any CLAIM he/she may have on the deed to that property and passes it on to the buyer with all the old potential claims of other people. Quitclaim deeds are typically used to clear up a technical defect in the chain of title or to release lien claims against the property. Examples of such deeds are correction deeds, and deeds of release. For example, suppose that a title search reveals that a property was once held by a partnership that later abandoned it. To make the title marketable, the current owner must obtain a quitclaim deed from all of the partners in the partnership. Quitclaim deeds can also be used for transactions between family members.