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General Warranty Deed
This is the most common form of ownership in
Ohio. If there is just one buyer, title will upon death pass to such owner's
heirs unless otherwise provided for by the owner's will. If there is more
than one buyer, then a Tenancy-in-Common among the owners is created, which
means that each buyer owns an undivided interest in the property. Upon the
death of one of the owners, title to their undivided part interest will pass
to that owner's heirs unless otherwise provided for by the owner's will.
The seller warrants the title to be free and
clear except as stated in the deed. The seller takes on responsibility for
the soundness of the entire chain of title.
Although seller's warranties are desirable,
title insurance has reduced their importance. Buyers and lenders generally
rely on title insurance to protect the investment. Therefore, title
insurance is also a benefit to the seller as it may reduce legal exposure if
old title defects arise.
Limited Warranty Deed
Under special circumstances the seller will
only warrant the title as to the period that s/he held title to the property
and is NOT RESPONSIBLE for matters previous the seller's acquisition.
Often used on commercial transactions where
buyer and seller agree to depend on title insurance for protection but
require seller to account, if necessary, for matters occurring during the
sellers time of ownership.
Also may be used when the seller is not in a
position to make warranties as to the entire history of title. An example
would be title taken by foreclosure (i.e. Sheriff's sale), in settlement of
a debt, etc.
Otherwise all other provisions are the same
as a General Warranty Deed.
Survivorship Deed
Warranty deed creating Tenants In Common With
The Right Of Survivorship.
This is used when two or more persons are the buyers. Upon the death of one
of the owners the interest is not considered an asset of the estate but the
title to the interest transfers "by contract" to the survivor(s).
Such interest, however, must be considered in the decedent's estate for Ohio
and Federal Estate Tax purposes as if it was an asset of the estate.
Quit Claim Deed
This is the simplest form of deed as it only
coveys whatever interest a seller owns or may own, and no warranties are
expressed or implied.
This creates tenancy-in-common if more than
one buyer is involved and is similar in this respect to a general warranty
deed.
The buyer has no recourse against the seller
for any defects in title. As a result title insurance is advisable whenever
a buyer accepts a Quit Claim Deed.
Special Purpose Deeds
Other types of deeds are necessary under
certain situations and their application is limited. Such special purpose
deeds include Sheriff's Deed (foreclosure), Trustee's Deed (bankruptcy),
Auditor's Deed (tax sale), Guardian's Deed (Probate Court), and the Executor
and Administrator's Deed (Probate Court).
As we always say, for further explanation or
advice as to the use or preparation of any material on this page, it is
strongly suggested that you consult an attorney competent in real estate
law.
Transfer on Death Deeds
(Effective August 29, 2000)
A Transfer on Death deed (TOD) creates a
present interest in either a sole owner or a tenant in common as grantee,
plus it creates a "transfer on death" interest in a specifically
named beneficiary or beneficiaries. This type of deed allows the owner to
convey property upon his/her death by avoiding using a certificate of
transfer or having an executor convey the property through probate.
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