Glossary

Deed

Also known as: conveyance instrument

The legal instrument that transfers title to real property from seller (grantor) to buyer (grantee), recorded in the local land records to establish public notice of ownership.

The type of deed delivered at closing determines the scope of title protection the seller extends to the buyer independent of the title insurance policy: a general warranty deed warrants against defects arising during the entire chain of title, even before the seller's ownership, a special or limited warranty deed warrants only against defects arising during the seller's own period of ownership, and a quitclaim deed conveys whatever interest the grantor has, if any, with no warranty at all. Institutional CRE sellers overwhelmingly favor special warranty deeds — enough protection to satisfy buyers and title underwriters, without the broader liability tail of a general warranty deed — and PSAs should specify the deed form explicitly rather than leaving it to local custom. The deed is distinct from and does not by itself protect against title defects; that function is performed by the title insurance policy underwritten off the title commitment.