Deeds in Michigan.

Most people know that a deed is a written document that conveys title to real estate. In Michigan, deeds contain the legal description of the property, include the names of the grantor and grantee of the property and may or may not contain certain reservations. Did you know that there are three kinds of deeds commonly used in Michigan? These three deeds, a quit claim deed, a warranty deed and the covenant deed, are all very different instruments.

A quit claim deed conveys only those rights in title that the grantor has in the property at the time of the conveyance of the property. A quit claim deed conveys no other interest in the property and does not assure the grantee that the grantor has any interest in the property at all.

A warranty deed includes a warranty of the grantor’s title in the property. A warranty is a promise. In a warranty deed, the grantor promises: 1) he is in lawful possession of the property; 2) he has clear title to convey the property; and 3) to guarantee the grantee will be able to enjoy the property without interference from others. In all, a warranty deed guarantees that the property is free from all encumbrances like mortgages or tax liens and, most importantly, that the grantor will defend the title of the property against any third parties that make a claim.

A covenant deed includes only covenants pertaining to the acts of the grantor but not of those of any other person. In these difficult economic times, some purchasers may see a covenant deed from a bank which has obtained the property by foreclosure.

As you can see, not all deeds are created equal. If you have questions regarding deeds, you may consult with one of our attorneys experienced in real estate law.