Types of Deeds in Arizona and Utah Real Estate Transactions

When transferring the ownership of real estate, it is important to know what deed you are giving or receiving. The person giving the deed is the seller, also known as the grantor, and the person receiving the deed is the buyer or grantee.

The most common form of deed with full covenants is the warranty deed.[1] A warranty deed expressly guarantees the grantor has good, clear title and covenants the quality of title, including warranties of seisin, quiet enjoyment, right to convey, freedom from encumbrances, and defense of title against all claims.[2] Thus, a warranty deed is preferred as it promises the grantor has good title to the property and provides warranties for a variety of defects, whether the defects were caused by the grantor or someone else.

A special warranty deed provides for a conveyance and covenant.[3] When a special warranty deed is executed, ownership of the real property named in the deed is conveyed to the grantee, together with all appurtenances, rights and privileges belonging to that property.[4] Moreover, in a special warranty deed the grantor covenants that the property is free from all encumbrances made by that grantor and that he or she will forever warrant and defend the grantee’s title of the property against any lawful claim and demand of the grantor and any person claiming or to claim by, through, or under the grantor.[5]

Accordingly, in a special warranty deed the grantor’s warranty is limited to defects or encumbrances caused by the grantor’s acts or omissions, or those who hold by, through or under the grantor; it does not warrant against defects that arose from someone else prior to the grantor’s ownership, unlike a warranty deed.[6] In such a case, if the defect if based on events which occurred while the property was in the hands of a prior titleholder, then the grantee will have to look to the covenants, if any, contained in the deed from a prior titleholder, and cannot recover against the immediate grantor.[7]

A quitclaim deed transfers a grantor’s complete interest or claim in certain real property to a grantee, but does not warrant the extent of the grantor’s interest, if any, or that the title is even valid.[8] In other words, a quitclaim deed says “I am giving you whatever interest I have in this property, but I am not making any promises about it as my title might not be good and I might not even own the property, but whatever I have is now yours”, whereas a warranty deeds says “I promise I own the property I am giving to you and the title to it is good”.[9] Thus, a quitclaim deed is risky and less preferable than a warranty deed. Quitclaim deeds, however, are helpful in clearing up title problems, transferring property between divorcing spouses, or in informal transactions between friends or family.[10]