Trustee Deed Vs. Warranty Deed

Clear title to property only comes with a warranty deed.

A trustee deed and a warranty deed are both used to convey full ownership of land, but differ greatly regarding the condition of the title being conveyed. If you want full ownership and good title, you'll want a warranty deed.

Real Estate Sale

In a typical real estate transaction, the buyer will acquire ownership from the seller by a warranty deed or grant deed. When conveying ownership with such a deed, the seller warrants to the buyer that the title is free and clear of all liens and encumbrances.

Foreclosure

A trustee deed is only used when real estate has been foreclosed on under the power of sale in the deed of trust. The sale usually takes place on the courthouse steps in a public bidding process. The trustee deed conveys full ownership, but no warranties of title.

Tax Liens and Judgments

Without warranties of title, you are acquiring ownership of the property subject to any liens against the property for such things as unpaid taxes and court judgments.

Remedies

The warranties of title under a grant or warranty deed mean that the seller will be liable to you if title to the property was not clear. The seller can be sued to clear title.

Ttitle Insurance

Title insurance is used in conjunction with sales involving warranty deeds to ensure that clear title is being conveyed. If there is a resulting problem with title, the title insurance company will have to take action to clear it.

References

• Nolo: Deed FAQs
• FindLaw: Foreclosure by Power of Sale