Title of real property is transferred from one person or entity to another using legal documents called deeds.
Colorado recognizes a number of different types of deeds. The fundamental components of a deed and five typical Colorado real estate deeds will be covered in this post.
A deed: what is it?
A legal document known as a deed enables a property owner to assign their ownership rights to another individual. A deed, which is most frequently used to transfer real estate, formally recognizes the new owner’s ownership of the property.
According to Colorado law, C.R.S. 38-30-113, a deed must incorporate the following in order to be deemed legitimate:
1) A written document.
For a deed to be enforceable in Colorado, it must be in writing.
2) Identified parties.
The person or entity transferring the interest in the property (the grantor) must be named explicitly in the deed for it to be deemed genuine. On the prior deed, the grantor must have been the name of the person who was granted the property (the grantee).
3) Consideration
The deed must include the consideration, or value, paid for the real estate, even though money does not have to exchange hands in order for property to be transferred from one party to another.
4) The conveyance statement.
A deed must express the intention to transfer title in some form, but no particular wording is required.
5) Description of the property.
The legal description of the property must match the one in previous deeds.
6) The grantor’s signature.
For the deed to be deemed legitimate, the grantor (or grantors, if there is more than one grantor) must sign it.
7) Grantor delivery and grantee acceptance.
When a deed is recognized and recorded in Colorado, it is presumed that it has been delivered and accepted.
Five Typical Deed Types
The BIG error that many people do is obtaining free deeds from the internet and filling them out without legal assistance. The five deed kinds that are frequently used in Colorado are given below for your reference.
1) Warrant Deed
A warranty deed gives the grantee the most protections under the law, because it guarantees the warranty of title and against encumbrances.
2) Special Warrant Deeds
In contrast to a standard warranty deed, which covers title flaws for the duration of the property’s history, a special warranty deed only covers problems that occurred during the grantor’s ownership of the property.
3) Bargain and Sale Deeds
A bargain and sale deed is typically used to sell properties that have been seized by the court and transfers property without any warranties.
4) Quitclaim Deeds
Only the grantor’s interest, if any, in the real estate is transferred via quitclaim deeds; the nature or size of the grantor’s interest is not guaranteed.
5) Beneficiary Deed
Beneficiary deeds, which must be recorded before the grantor’s death, are used to transfer property upon the owner’s passing.
A crucial step in the legal process is selecting the appropriate form of conveyance. To prevent issues and unanticipated costs, it is therefore always better to speak with an experienced lawyer.
To arrange a free consultation, contact us today.