This week on “Closing Explained,” I will be explaining the different types of deeds you are able to use to go into title on your property. There are seven different types of deeds in the state of Minnesota. Today we will touch on the three most commonly used deeds.

All Minnesota Deeds:

  • Warranty Deed
  • Limited or Special Warranty Deed
  • Quit Claim Deed
  • Personal Representative Deed
  • Trustee’s Deed
  • Transfer on Death Deed
  • Deeds of Easement

In Minnesota, a deed is the document that is executed to convey the title of a property from the current owner to the new owner. Upon signing and notarization, the deed is recorded in the property records with the county where the property is located to legally convey (transfer) the title interest. Today, we’ll look at a Warranty Deed, Quit Claim Deed, and Personal Representative’s Deed.

Warranty Deed

A Warranty Deed is the most frequently used deed to convey property ownership. This type of deed provides the new owner the highest amount of protection for their purchase. A warranty deed warrants the property is free and clear of any outstanding liens, mortgages, or any other encumbrances, except for those listed on the deed. I like to say the seller “warrants” the good title that they know they possess is clear.

Quit Claim Deed

In contrast to a Warranty Deed, a Quit Claim Deed does not provide any warranties for the title of the property. A Quit Claim Deed simply conveys the seller’s interest of the property to the buyer of the property, whatever that interest may be (which may be none). The owner of a property essentially transfers all ownership to the new buyer when this deed is used, without any assurance the title is in good standing. I like to say with a Quit Claim the title holder says “I quit” any interest I may possibly have in the title. A Quit Claim deed might typically be used to remove or add someone to title or to resolve a past title issue in question.

Personal Representative’s Deed

A Personal Representative’s Deed is used when the owner of a property has passed away. This type of deed is used to transfer the deceased owner’s interest in the property. The title can be transferred to either a third-party purchaser or an estate beneficiary.

As you can see, there are deeds for each situation one might find themselves in. As closers, we can help you through the process and help you understand why you need the appropriate deed based on the current ownership circumstances. If you are in the process of closing on your home and have questions, don’t shy away from asking us.  We’re here to help you understanding the closing process!

–Cindy