Real  Estate  Title  Deeds

The vast majority of real estate transactions use one of four types of deeds to convey title. The differences between them are primarily the covenants and warranties conveyed by the grantor - the individual or entity transferring the property-to the grantee, the individual or entity who is receiving it.
Warranties and covenants can vary from few-to-none in a quitclaim deed to the significant warranties conveyed in a general warranty deed.
Deeds can be less than one page, or they can be several pages long. They're normally prepared by an attorney. A deed is a legally defensible instrument after it's been signed by all parties, transferring property between them pursuant to its various restrictions, covenants, and special granting clauses. 

The General Warranty Deed

A general warranty deed provides the highest level of protection for the buyer because it includes significant covenants or warranties conveyed by the grantor to the grantee. Specifically, this type of deed promises that the grantor/seller owns and/or has a legal right to sell the property, and that it is free and clear of any liens, debts, or encumbrances.  
The exact rules and provisions of a general warranty deed can vary somewhat by state, but you'll typically find the words "warrant generally" and "convey and warrant" contained in the verbiage. "Warrant" is the key term. It means "guarantee," and the seller/grantor is legally bound by the warranties conveyed. 

The Special Warranty Deed

A special warranty deed doesn't provide as much protection for the buyer. The grantor of this type of deed conveys the property along with just two warranties - that the grantor does indeed hold title to the property, and that the property wasn't encumbered during the grantor's period of ownership. It doesn't guarantee that it was unencumbered before the grantor took ownership, however.  You'll most likely encounter this type of deed when a trust or estate is transferring property, or when commercial property is sold. The seller might not have any knowledge of what transpired with the property before taking ownership, so it won't guarantee that the title was free before that point in time.  These deeds might say that the grantor "remises, releases, alienates, and conveys" interest in the property. The warranties are standard unless otherwise specified in the deed.

The Bargain and Sale Deed

A buyer gets no protection from encumbrances whatsoever with a bargain and sale deed. This deed merely states that the grantor holds title to the property, but it doesn't assert that it's also free of liens. The grantee could be in trouble if title defects appear at a later date because the deed doesn't guarantee good title. The grantee would therefore have no legal recourse.
This type of deed has very specialized uses. It's most frequently found in tax sales and foreclosure actions when the history of a property might be a bit murky. The current owner is typically the lender or a taxing authority and doesn't know the property's history either with the last owner or at any time prior to then.   

The Quitclaim Deed

A quitclaim deed provides the least protection for the buyer, and its uses are very limited. This type of deed simply transfers any interest the grantor might have in the property. It doesn't guarantee that the grantor has any interest to convey.
You could enter into a quitclaim deed to transfer ownership of your neighbor's home because it effectively says, "If I own this property, it's all yours." The grantor terminates or "quits" any right and claim to the property, allowing the right or claim to transfer to the recipient/grantee.
Nor does this type of deed make any warranties against liens or encumbrances. It's most often used in divorce situations when property is being transferred between spouses and both have knowledge of the property's history. Presumably, they acquired it by general warranty deed and they know everything that's transpired with it since then.   

Deeds Aren't the Only Limitations to Ownership Rights

There can be restrictions on ownership in deeds as well, but the vast majority of restrictions and covenants related to the use of property are contained in homeowner association documents and condominium association rules.  

Abstract of Title in Real Estate

An abstract of title is a written history of all the recorded documents and proceedings related to a specific property.  When a sale contract is authorized, an attorney or a title company researches all the recorded records related to a property and prepares a written chronology.
An abstract of title is an important document to have prepared and to thoroughly read and understand prior to purchasing a property.  While it may be tempting to skip this step in your quest for a house, it is worth doing - to avoid the risk of owing money to liens or making changes that are forbidden by your HOA or by another claimant to the property who could block your sale.

What Abstract of Title Means

When purchasing real estate, you do not want to be buying a property with liens or other problems you don't know about. If you're going to buy a home with liens on it, you need to know what they are and how much. You also want to avoid survey problems. You don't want any claims on the property hiding out there - an ex-spouse claiming ownership who is not shown on the title, for example. An abstract of title should show everything recorded at the county courthouse in relation to the property you're buying.
All liens, encumbrances, encroachments, and claims should be on this report. Only items on record at the courthouse will be found, but normally anything not recorded is not as big of a threat, and you can buy title insurance to cover unknown title defects. A real estate attorney or a specialist at searching county records normally looks up the title. An attorney should then read the abstract and comment on any problems discovered. You don't want to sign a contract until the title has been fully examined.

An Abstract of Title Could Contain

An abstract of title can be a pretty thick pile of paper. The info on it can include:

• Liens: Mechanic and repair liens, or liens for monies borrowed against the property, second mortgage, etc., should be listed if they exist.
• Tax liens: If property taxes are in arrears, there could be tax liens on the property. They take precedence over other liens, and you can lose the property if they're not paid.
• Homeowner Association (HOA) liens: If you don't pay your HOA dues, they can put a lien against the property.
• HOA restrictions and covenants: You need to know what you can and cannot do with or on your property.
• Surveys and notes: If there are encroachments on your property, they will show up in surveyor notes. An example would be the neighbor building a new fence a foot into your property line.Easements: It is common for there to be easements for utilities.
• Easements are often worded as a certain number of feet along a property line which is reserved for installation and repair of sewer, water lines, etc. You don't want to build a deck over this space, as the easement allows the utility to tear it up to do its work