Hello, I am in a real deed challenge, and would like to know the legal differences between a GRANT DEED and SPECIAL WARRANTY DEED? And what the different protections these 2 deed types provide?

Also, do both types need to be recorded, or as in the Grant Deed ( I read somewhere that this type of deed is Valid even if a person waits to record it - say after someone dies?Is this validity true?

Question is - if this is true of a Grant Deed - then even if it is valid - how do you keep the previous owner from encumbering this property without your knowing, if the deed is signed and notarized but the trust settlement states you cannot record till death? What other instrument is needed to protect this property from further mortgages and or bankruptcy on the part of the Grantor ( person signing over the Grant Deed?)

Can Grant Deeds be used in a Trust situation where the Grantor of the Grant Deed is given life-estate - but the Grantee ( new owner upon death) is not allowed to record this Deed until the Grantor dies. How do we protect this property before this Grant or Special Warranty Deed is allowed to be recorded?

Are there any web sites that can show me more information on this subject?

Thanking you in advance,

Confused and Bewildered - bwhiteowl7

Maybe it would help if you explain your exact siutuation.

From Grant deed (http://www.citifinancial.com/glossary/defin/GrantDeed.htm)

Grant deed
An official document that is used to transfer a property's ownership
A grant deed is the most common type of deed used to transfer property from a seller to buyer. Grant deeds are used for properties that are mortgaged and not mortgaged. Upon closing of the property's purchase/sale, the title company records the grant deed at the county courthouse and sends the buyer the original in the mail. In order to use a grant deed, the property must be clear of any claims.

From Special Warranty Deed (http://www.socrates.com/Special-Warranty-Deed.aspx)
Used to convey an intererest in real estate, where the grantor does not warrant against the defects arising from conditions that existed before he/she owned the property.

P.S. I simply googled those terms and came up with those sites and others. Took me 3 minutes to poat this answer.

Hello ScottGem,

Thank you for your posted answer. Details of our case; We are involved in a Trust Arbitration and the opposing side has been ordered to provide us with a deed to a piece of property that is used for rentals, We finally got the Arbitrator to order the oppos-sd. To give us a Special Warranty Deed , but this Deed is supposed to be held in escrow and NOT Recorded until the Oppos-sd dies, and we are supposed to put a Lis Pendens on this property to protect its assets. HOwever we did that and we were not notified that the LP expired and the Oppos-sd has already put another mortgage on the property even against the Arbitrator's wishes and the Arbitrator acts like he is scared and is letting this man get away with it. We have proposed that a Lis Pendenz is not exactly the best protection and that we should Record Special Warranty Deed immediately however it looks like the Aritrator is leaning toward his 1st decision to have the deed held in escrow until the opposing party dies. That's why I wondered if a Grant Deed gives more protection. even if it is years before it is actually recorded ( I read that somewhere on net), or does it need to be recorded immediately to take effect, even though it will be notarized?


Also, do you know of any other ways to protect other people or anyone from mortgaging your property again? Can we as a Trust put a Mortgage on this piece of property , which would stop the oppos-sd. From doing any further demise to this property as an asset? The property is in KY.

We want the oppos-sd. To get the income this rental property generates , but he is not happy unless he can mortgage it to the hilt and leave us with only debt. He is also 79 yrs old and very sharp and nasty and is an expert on how to con and take people's money and has been stealing money from our trust for 8 years now and he seems to know how to cheat the system more than our lawyers --- and we are too far into the game and the $ bills to start all over with a new lawyer. So we the partitioners feel like we are still being raped ( 4 of us) even while we are asking for help in the court system.

Thank You for your time Scott - hope this explains more.

Sincerely, bwhiteowl7

Well, from the link I gave you a Grant Deed is a document registered at the time of a sale so that's not what you want. And the Special Warranty Deed doesn't seem to protect future actions especially if its not recorded.

My feeling is that a lien should be recorded on the property to the trust. A lien would then show up on any title search. This would inhibit any further loans against the property since a mortgage company would not like taking a subsidiary position. This is similar in thinking to the Lis Pendens, but I think it may be stronger. I don't think a lien expires until the property is sold and the lien statisfied.

I'm curious as to who let the Lis Pendens expire. Someone dropped the ball there. If your attorney was supposed to manage that, you have a malpractice claim against them.