What type of deed should you get for your home purchase in Colorado?

You are ready to purchase your new home but need to know the best way to convey the title to provide you with the protection you need.  Here is a description of the different types of deeds.

Types of Deeds

General Warranty: This deed is the most commonly used in typical residential transactions. It warrants or guarantees to the person who acquires title (the grantee) that the title is good from the creation of the tract until the present. It passes after-acquired title (see below). The statute (Section 38-30-113(2) C.R.S.) provides:

1. That at the time of the making of such instrument he was lawfully seized of an indefeasible estate in fee simple in and to the property therein described and has good right and full power to convey the same;
2. That the same was free and clear from all encumbrances, except as stated in the instrument; and
3. That he warrants to the grantee and his heirs and assigns the quiet and peaceable possession of such property and will defend the title thereto against all persons who may lawfully claim the same.

Special Warranty Deed: This deed also passes after-acquired title but warrants the title only since the grantor acquired title; that is, only for the period of time the title was held by the grantor. Section 38-30-115 C.R.S. provides:

A deed executed according to the form in section 38-30-113 with the words “and warrant the title to the same” omitted therefrom shall have the same force and effect as a bargain and sale deed, without covenants of warranty, at common law and will pass the after-acquired title of the grantor; and the words “and warrant the title against all persons claiming under me” when included in such deed shall be a covenant that the grantor will warrant and defend the title to the grantee and his heirs and assigns against all persons claiming to hold title by, through, or under the grantor.

An example of a special warranty deed is a personal representative’s deed, used to transfer title from an estate to a buyer. The personal representative desires to warrant only the title he acquired from the deceased person.

Bargain and Sale Deed: This is in some respects the same as a special warranty deed and is described in Section 38-30-115 C.R.S., above. However, there are no warranties of title. This deed is rarely used. It is a compromise between a warrant and a quitclaim deed, and there is not much reason to use one in private transactions. However, examples of this type of deed would be a public trustee’s deed (by which the purchaser acquires title after a public trustee’s foreclosure sale), a sheriff’s deed (by which the purchaser acquires title after a sheriff’s foreclosure sale), and a court-ordered deed (a deed signed by the clerk of the court pursuant to the court’s order). This last will often occur when a party has refused to sign a deed, and the clerk’s deed operates in place of the reluctant grantor’s deed.

Quitclaim Deed: This type of deed is the ultimate in the no-liability document of conveyance. Section 38-30-116 C.R.S. defines a quitclaim deed as follows:

A deed executed according to the form in section 38-30-113 with the word “quitclaim” substituted for “convey” and the words “and warrant the title to the same” omitted therefrom shall be a deed of quitclaim and shall have the same effect as a conveyance as quitclaim deeds now in use.

A quitclaim deed does not pass after-acquired title and makes no warranties of any nature. A quitclaim is often used to clear up small discrepancies in legal descriptions, to remove or add someone’s name to the title to property, and so on. Another way of describing the effect of a quitclaim deed is: “I have no idea whether I have any interest in this property or not. I make no warranties of any nature that I do or do not have title, but if I do have any interest, whatever it is, I am conveying it to you.”

As always, it is best to ask your attorney for the deed that provides you the most protection.  Best of luck with your new home purchase.