Real Estate Deeds and Restrictions on Property
Purchasing real estate is a significant investment. When you purchase a home or any Real Estate property, you should be secure in what you are buying, and confident that you know all there is to know about the property. A real estate deed transfers ownership of real property from one person to another, and as a legal instrument, your deed can help to ensure that you alone own the property who can claim any rights to the property. When making a home or property purchase, debts or judgments from prior owners or restrictions in terms of use of the land can cause serious problems. Knowing the common types of deeds typically in use, you will be well informed and feel confident that you are getting what you expect.
Restrictions on Property
Encumbrances are restrictions placed on your property, and they can affect your ability to use or resell your property. Common restrictions on property include:
- Liens due to debts, judgments, or foreclosures by prior owners;
- Easements which allows others a legal right to use your property;
- Restrictive covenants, in terms of what you can and cannot do with your property; and
- Encroachments, in which portions of your property encroach upon another’s.
Encumbrances and restrictions on property can be dealt with if you know they exist. It can become problematic if you aren’t aware of these things when you purchase the property. Depending upon the type of deed you get, you may or may not be protected against undiscovered or undisclosed encumbrances.
Common Types of Deeds
Three of the most common types of deeds used throughout the state of New York are warranty deeds, limited or bargain and sale deeds, and quitclaim deeds.
Warranty Deed – With a warranty deed, the seller guarantees that any encumbrances on the property have been disclosed.
Limited Warranty Deed – Often referred to as a Bargain and Sale deed and most common in purchases and sales. This deed may include covenants guaranteeing that the seller has not encumbered the property in any way that hasn’t been disclosed. At the same time, there is no guarantee an encumbrance doesn’t exist from a prior owner.
Quitclaim Deed – With a quitclaim deed, the seller is only conveying whatever interest he may have had in a property-meaning the seller may not even be listed on the original deed. These types of deeds are often used in divorces, to transfer property to trust accounts. There is always a distinct possibility with a quitclaim deed that there are liens or judgments on the property-which is why the seller is only conveying the interest in the property that is theirs to convey.
Contact Cavallo and Cavallo Attorneys
If you are considering purchasing or selling a home or any real estate property, it’s important to know exactly what you are buying and what kind of deed you will need. At Cavallo & Cavallo, our experienced real estate attorneys can help you with the entire process of home purchase and property ownership, while always looking out for your best interests. With offices in the Bronx as well as Westchester, we’re your neighborhood law firm. Contact us today to arrange for a free consultation.
