![]() ![]() A typical North Carolina warranty deed includes 4 covenants from the current owner: A general warranty deed’s guarantee comes in the form of several legal promises-called covenants of title-made by the current owner who signs the deed. General Warranty DeedsĪ North Carolina general warranty deed-sometimes shortened to warranty deed-gives the strongest warranty of title among North Carolina deeds. North Carolina special warranty deeds are most often used for negotiated sales of commercial real estate and transfers between business entities. The owner cannot bring a breach-of-warranty lawsuit for issues that pre-date the current owner’s ownership period. The new owner can sue the prior owner for breach of warranty to recover losses caused by title problems that arose while the current owner held title. Special warranty deeds-also called limited warranty deeds-split the title-related risk between the current owner and the new owner. Any issues that arose before the current owner acquired the property are outside of the limited warranty’s scope. In other words, the limited warranty covers title problems that resulted from something the current owner did or failed to do. But the warranty is limited because it only applies to issues that arose while the current owner owned the property. The current owner guarantees a good title with no undisclosed title problems. It’s a good idea to review existing title insurance policies before recording a deed to determine if the deed will have any effect on coverage already in place.Ī North Carolina special warranty deed transfers real estate with partial or limited warranty of title. There is little practical difference-though title insurers sometimes prefer non-warranty deeds. The legal distinction is that a quitclaim deed transfers whatever rights or interest the current owner holds, while a non-warranty deed is intended to transfer the property itself. Both deeds give the transferee whatever title the transferor holds with no guarantee of the title’s status or validity. For example, a non-warranty deed might reserve a life estate or add a related co-owner to create a right of survivorship.Īttorney Practice Note: North Carolina quitclaim deeds and non-warranty deeds function very similarly and are often used synonymously. Non-warranty deeds are also common in estate planning. Owners typically use non-warranty deeds to transfer property to an entity the owner controls-such as a trust or LLC. Like quitclaim deeds, non-warranty deeds place all risk of title issues with the new owner. The new owner receives the property’s title if the current owner in fact owns it. The current owner gives the property to the new owner but makes no promises about the property’s title. North Carolina Non-Warranty Deed FormĪ North Carolina non-warranty deed transfers real estate with no warranty of title. An owner might use a quitclaim deed to add a spouse to a property’s title or to transfer property to a revocable living trust. Quitclaim deeds are typically used for transfers involving no consideration-or value provided in exchange for the property. Any liens, mortgages, HOA assessments, property taxes, or other title problems that reduce the property’s value are the new owner’s responsibility. ![]() If the transferor does not actually have an interest in the property, the new owner cannot sue for breach of warranty. The person receiving the interest (the grantee) gets whatever interest the grantor can legally transfer and nothing more or less.Ī quitclaim deed places all risk of title problems on the new owner. North Carolina Quitclaim Deed FormĪ North Carolina quitclaim deed transfers with no warranty whatever rights or interest the person signing the deed (the grantor) holds in the real estate. North Carolina’s four main deed types-listed from the weakest warranty to the strongest-are quitclaim deeds, non-warranty deeds, special warranty deeds, and general warranty deeds. Warranty of title is the transferor’s guarantee that a deed transfers valid title with no undisclosed liens or similar problems. ![]() Each type of deed is defined by the warranty of title (if any) it provides to the new owner. 1 North Carolina law recognizes several types of deeds an owner can use to transfer property during life. What Types of Deeds Are Recognized in North Carolina?Ī property owner formally transfers North Carolina real estate to a new owner by signing a deed and recording it in the register of deeds office. Get a Customized North Carolina Deed Today Just complete a user-friendly interview and get a customized deed that is attorney-designed to meet North Carolina recording requirements. Need to transfer North Carolina real estate? ![]()
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