What Is the Difference Between a Deed of Trust & a Warranty Deed?

By Robin Durand
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A deed of trust and a warranty deed are examples of real estate documents. These documents deal with the interest in a property; the former concerns a lien holder interest while the latter involves the property's ownership.

Similarities

Each document contains a legal description of the subject property and must be properly signed, witnessed and notarized. Both must be filed with the county Register of Deeds office to become effective.

Definition of Deed of Trust:

A deed of trust is similar to a mortgage and is used in several states. The owner deeds the property to a trust which holds the property for the benefit of a lender. The property is pledged as collateral for a loan and the lienholder interest remains in effect for as long as the borrower owes money to the lender.

Definition of Warranty Deed

A warranty deed is a deed that guarantees to the buyer that clear title is being conveyed to the property and the property is transferable. If more than one person owns a property via a warranty deed, then each person owns a percentage interest in the property.

Parts of a Deed

A deed transfers real property from a seller or grantor to a buyer or grantee. The grantor signs the deed and the deed is recorded in the Office of the Register of Deeds for that particular county. A deed of trust is signed by the owner of the property and contains a legal description of the property being used as collateral for the mortgage.

Forms

a template, a warranty deed, deed, trust
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Be cautious when using a template of a warranty deed or deed of trust found in paralegal resource form books, or purchased online, as each state may have different requirements for these documents' formats. If in doubt, consult an attorney experienced in real estate law.

About the Author

Robin Durand is a paralegal and college instructor in South Carolina. She received an associate's degree in paralegal studies from a technical college in South Carolina, and has more than 13 years' experience as a paralegal. She has been a freelance writer for over one year and enjoys writing articles relating to legal matters and house and home information.