Understanding Deed Types and Their Impact on Transactions

Different deed types offer different levels of buyer protection. Know what you're getting.

The type of deed used in a real estate transaction determines the level of title protection the buyer receives. As a flip investor, you encounter different deed types when buying and should understand the implications.

General warranty deed: Provides the highest level of buyer protection. The seller guarantees clear title, defends against all claims, and is liable for any title defects — even those predating their ownership. This is standard for conventional sales.

Special warranty deed: The seller only guarantees against title defects that occurred during their ownership period. Common in REO (bank-owned) sales where the bank doesn't want liability for issues from previous owners.

Quitclaim deed: Offers zero title protection. The seller transfers whatever interest they have (if any) without any guarantees. Common in family transfers, divorce settlements, and some distressed sales. Always get title insurance when buying via quitclaim.

Bargain and sale deed: The seller implies they own the property but makes no guarantees against encumbrances. Common in foreclosure and tax sale transactions.

For your flip dispositions, always provide a general warranty deed to your buyers. This is expected by lenders and title companies and provides maximum buyer confidence.