When transferring real property in New York, understanding the different types of deeds and their legal implications is crucial. This article will explore the most common types of deeds used in New York, their specific characteristics, and address frequently asked questions about obtaining, preparing, and transferring deeds.

Types of Deeds in New York

1. Warranty Deed (Full Covenant and Warranty Deed)

This deed provides the highest level of protection for the buyer (grantee).

Key features:

• The seller (grantor) warrants they have clear title to the property

• Guarantees the property is free from encumbrances

• The grantor promises to defend the title against any claims

• Most commonly used in upstate New York counties

2. Bargain and Sale Deed

This is the most common type of deed used in downstate New York, including New York City and Long Island.

Key features:

• Can be with or without covenants against grantor's acts

• With covenants: The grantor promises they haven't done anything to encumber the property during their ownership

• Without covenants: Offers minimal protection to the grantee

• Typically used in arms-length transactions with consideration

3. Quitclaim Deed

This deed offers the least protection to the grantee.

Key features:

• Transfers only the interest the grantor currently holds, if any

• No warranties or guarantees about the title's quality

• Often used in transfers between family members or in divorce settlements

4. Executor's or Administrator's Deed

Used to transfer property from a deceased person's estate.

Key features:

• Executed by the estate's fiduciary

• Provides details about the estate and the fiduciary's appointment

• Typically includes a covenant against the fiduciary's acts

Legal Implications

1. Title Insurance: While warranty deeds offer strong protections, many buyers still opt for title insurance (and should), especially with bargain and sale deeds.

2. Recording: All deeds should be recorded with the appropriate county clerk's office to provide public notice of the transfer.

3. Tax Consequences: Different types of deeds may have varying tax implications, particularly in family transfers or estate planning situations.

4. Future Claims: The type of deed used can affect the grantee's ability to seek recourse against the grantor if title issues arise later.

Common Questions

How do I obtain a deed?

In New York, deeds are typically prepared by attorneys or title companies during a real estate transaction. You can also obtain copies of existing deeds from the county clerk's office where the property is located.

What forms are required when recording a deed in New York?

When recording a deed in New York, you generally need to complete:

• Form TP-584 (New York State Real Estate Transfer Tax Return)

• Form RP-5217 (Real Property Transfer Report)

Can I prepare my own deed?

While it's legally possible to prepare your own deed, it's not recommended due to the complexity of real estate law and the potential for errors. It's best to consult with a real estate attorney to ensure the deed is properly prepared and executed.

How do I transfer property to a family member?

You can use any type of deed to transfer property to a family member, but quitclaim deeds are often used for their simplicity. However, it's important to consider potential tax implications and future title issues when choosing the type of deed.

Conclusion

Understanding the different types of deeds and their implications is essential for anyone involved in real estate transactions in New York. Given the complexities of real estate law and the significant financial implications of property transfers, it's highly recommended to consult with a qualified real estate attorney when preparing or transferring deeds in New York. They can help ensure that the deed is properly executed, recorded, and provides the appropriate level of protection for your specific situation.

Have questions? Feel free to give us a call at (347) 588-7668 or contact us via email at info@michel-law.com.