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News and Ideas for
Real Estate and Mortgage Professionals
November 2015
  
Thanksgiving Welcome to this month's edition of the McManamy McLeod Heller, LLC monthly newsletter. Each month we share important information for the serious real estate professional. You can rely on MMH to update you on current changes in real estate law that will impact your business and to offer you practical ideas on how to provide your clients with the best customer service in town.
  
This month we review the various forms of deeds used in real estate transactions.

On behalf of the staff at McManamy McLeod Heller, LLC, we wish you a Happy Thanksgiving and a day of appreciation and gratitude! 
   
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Keys to Protect Your Buyer:
Using the Appropriate Form of Deed
for Real Estate Transactions 
 
A scale house on some forms for a deed to conceptualize on the financial investment.
 
For Buyers, there are various types of deeds that are signed at the closing table. The language used to create valid title is one of the most important documents and can often be confusing for Buyers. The manner in which possession of real property is taken can matter greatly to your client in the future. Selecting the wrong type of deed and/or language can mean months of wasted time and money in resulting judicial proceedings and potential lost proceeds from sale. Here is an explanation of the various ways one can take title so you can educate your Buyers on making an informed decision.


QUITCLAIM DEED
A quitclaim deed merely releases whatever interest the Grantor has to the Grantee without warranting the rights, title or interest of the Grantor in the real property. A quit claim deed can serve other purposes as well, such as releasing lien rights.

EXECUTOR DEED
An executor's deed is used to transfer real property from the estate of a deceased person to an heir pursuant to the terms of a will. The executor of an estate is the person appointed in the will to marshal the deceased's assets, determine what debts and liabilities need to be paid out of estate funds and ultimately distribute the assets to designated heirs or beneficiaries.

LIMITED WARRANTY DEED / SPECIAL WARRANTY DEED
A limited warranty deed is one in which the extent of liability for defective title is cut down by special recitals. The form in common use limits the warranty to the claims of persons holding by, through, or under the grantor.

GENERAL WARRANTY DEED
A warranty deed is one containing covenants of title, usually a general warranty, which includes in itself covenants of a right to full ownership, the right to sell the property, of right of use and quiet enjoyment, and the freedom from encumbrances. This the most ideal form of conveyance, since both parties can be assured of their respective rights.

TRUSTEE DEED
A trustee deed is executed by a trustee to transfer real estate held in trust to someone other than the trustor. Typically, the deed conveys the title to a foreclosed property that is auctioned to the highest bidder at a trustee's sale. If no auction bid is large enough to pay any outstanding debt for which the property serves as security, the deed is transferred to the lender. A trustee's deed does not contain warranties that no encumbrances exist against the auctioned property. As a result, the new owner is responsible for existing liens against the property whether or not he was aware of the liens at the time of purchase.


TENANCIES FOR DEEDS

Wherever two or more persons are entitled to or choose to share the simultaneous possession of property, a tenancy in common is created. The tenancy in common is the most frequently occurring form of plural or concurrent estates, as distinguished from those which are solely owned or are consecutive to each other. It is characterized by a unity of possession and equal rights in the property.

TENANTS IN COMMON
A deed indicting tenancy of two or more co-owners who have identical interests in a property and the same right of possession. Upon the death of either party, the proportionate share of the decedent's interest will convey to their estate or as designated in their will. If the deed is silent as to the type of tenancy, the law will treat the tenancy as tenants in common.

JOINT TENANTS WITH RIGHT OF SURVIVORSHIP
A deed conveying real property to two or more co-owners (usually husband and     wife) for the duration of their respective lives with the remaining interest     automatically reverting to the last survivor. It is used by home buyers to     circumvent the administration of the     property upon the death of one of the     parties.


SECURITY DEEDS

The security deed is a document that the Buyer will sign at the time of closing if they obtain a loan in conjunction with the purchase of property. This is the mortgage lenders' way to evidence that a loan has been made to the borrower.  The real property in question serves as the collateral for the loan. Security deeds are signed by the borrower(s). These deeds are used in conjunction with a promissory note (the document wherein the Buyer promises to repay the lender) and recorded in the real property records with the county.


TIP:  At closing, the attorney will usually ask a real estate agent to unofficially witness the deed as an uninterested third party.  When witnessing the deed as an unofficial witness, quickly check to see if the correct language is provided based on previous discussions with your client.
  
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Have You Visited Our eNewsletter Archive?
 
Missed a past eNewsletter or want to review a past article? McManamy McLeod Heller archives all of our past eNewsletters on our website at www.mmhfirm.com. Visit the site and click on the "View Our eMail Archive" button.
 
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MMH Has 3 Locations to Serve Your Needs    

Buckhead Location:
3520 Piedmont Road NE, Suite 110
Atlanta, Georgia 30305
Phone:  404-442-6600
Fax:  770-351-0940
 
Midtown Location:
621 North Ave NE Suite C100
Atlanta, Georgia 30308
Phone:  404-502-3334
Fax:  1-866-898-1099
 
Alpharetta Location:
5780 Windward Parkway Suite 225
Alpharetta, Georgia 30005
Phone 770-781-3000
Fax:  888-998-7373
 
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Thank you for taking the time to read our newsletter.
 
Next month we will discuss some common types of liens that can arise and hinder the closing - water bills, home owners' associations and taxes!  
We would love your input on topics for future issues. Please send your suggestions to info@mmhfirm.com.
 
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