When it comes to transferring property ownership in Vermont, it is essential to understand the various types of deeds available. Each deed serves a specific purpose and offers different levels of protection for both the buyer and the seller.
You should understand each option and the role it plays.
Warranty deed
A warranty deed is the most comprehensive type of deed in Vermont. When a seller uses a warranty deed, they are guaranteeing that they have clear title to the property and the right to transfer ownership. This deed offers the highest level of protection for the buyer, as the seller is legally responsible for any title issues that may arise, even if they were unaware of them at the time of the sale.
Quitclaim deed
A quitclaim deed applies when the seller transfers their interest in the property without making any guarantees about the title. This type of deed is often used in situations where the property is being transferred between family members or when the seller is unsure about the status of the title. Quitclaim deeds offer limited protection for the buyer, as the seller is not held responsible for any title issues that may come up after the sale.
Trustee’s deed
A trustee’s deed covers a property sold by a trustee, such as in the case of a foreclosure or a deed of trust. This type of deed transfers ownership from the trustee to the buyer, and it typically includes a limited warranty that protects the buyer from any title issues that occurred during the trustee’s ownership of the property.