Trust Deeds

• A trust deed is sometimes used in lieu of a mortgage. Instead of a lien being placed on the property until the mortgage loan is paid, a buyer does not receive title to the property on transfer. Title to the property is place in trust, usually held by a title company, until the loan is paid in full. The trustee does not have any rights to the buyer’s property, other than to sell the property if the buyer defaults on the loan.
  
  

Quitclaim Deeds

• A quitclaim deed is not generally used for transfers of sale because the deed does not contain any warranties. This means that a seller does not guarantee that he has legal title to the property he is selling. The property may contain a lien or could even be owned by someone else. A buyer takes a risk if he accepts a quitclaim deed. That is why a quitclaim deed is usually only used to transfer property between spouses or relatives (like parents to children) where there is no sale transaction involved.
  
  

Warranty Deeds

• A warranty deed ensures that a seller is transferring “good and marketable” title. The warranties, or covenants, guaranteed by a warranty deed include the right of possession, freedom from encumbrances (liens or other claims), and the right to quiet enjoyment. A warranty deed provides that a seller will defend the buyer against any claims by a third party that breach a buyer’s warranties.