The forms you’ll use in the buying and selling of Colorado real estate is dependent on the type of deed the seller uses to transfer ownership of a property to the buyer. For most transactions in our state, you’ll use one of four types of deeds.
General and Special Warranty Deeds
With either of these types of deeds, the seller “sells and conveys” the property to the buyer, and gives certain warranties of title:
- Seller is the owner of the property and is legally able to convey it to the buyer
- The property is free and clear of all liens or other encumbrances
- Buyer will enjoy quiet and peaceable possession
In a General Warranty Deed, the seller’s warranty extends to all claims against the title, including any which arose before the seller owned the property. Special Warranty Deeds are more limited, in that the seller warrants title only for the time that he or she was in title to the property.
Bargain and Sale Deeds
In the Bargain and Sale Deed, the seller “sells and conveys” the property to the buyer without any warranty of title. This type of deed will convey “after acquired title.” This means that if the seller did not hold title at the time of the sale, but later acquires title to the property, the property’s title will pass to the buyer without the need for another deed.
In a Quitclaim Deed, the seller “sells and quitclaims” whatever present interest he or she has in the property, with no warranties. If the seller has no interest in the property, the buyer receives none.
Which Deed is Best for You?
Deciding which type of deed to choose is complex and can create conflict between parties in a real estate transaction. Your Realtor® and your title insurance officer can help you make the determination of which type of deed is best suited to your transaction. You can learn more about real estate deeds in Colorado here.
Are You Buying a Home in Grand Junction?
If you’re thinking about buying a home in Grand Junction, Fruita or any of the surrounding communities, we’d love to help you.
Call us at 970-765-4135 or get in touch with us online to tell us what you want from your next house. We’ll help you find it.
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