A deed in lieu of foreclosure is used for circumstances where the grantor is on the brink of losing his or her property in bankruptcy and chooses to deed the property to a grantee instead of having it foreclosed upon.
Another type of deed is the general warranty deed, which is similar to a grant deed. There is one major difference and that is, warranty deeds have a third guarantee. The third guarantee is that the title is free of any defects, even if a previous owner caused the defect. Depending on state law, a phrase such as "conveys and warrants" is included. These are considered operative words of conveyance.
Regardless of the type of property deed, it becomes part of the public records, and property records remain attached to the real estate as a historical document showing who has owned it over time. Any time you transfer title, a new property deed must be officially recorded.
A release deed or a deed of reconveyance is held by a trustee under a deed of trust loan and when the loan is repaid, it releases (or conveys) the deed back to the grantor.
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