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Types of Deeds in Michigan: A Complete Guide

Sep 19 | 2023  by

Types of Deeds in Michigan

Deeds in Michigan are defined as any legal instrument that conveys ownership interest in an asset to a new owner. When using a deed, the title to a property can be transferred. However, there are quite a few types of deeds in Michigan that can be used for a wide variety of scenarios. Below are four of the most common types of deeds in Michigan.

Quitclaim Deed

A quitclaim deed transfers whatever title or interest the grantor has in the property to the grantee without any warranty of title whatsoever. A quitclaim deed has no warranties or protections, meaning the buyer assumes the seller’s purported interest in the property at their own risk and expense.

For this reason, quitclaim deeds are typically used for transactions where the parties know each other. The familiarity and certain level of trust reduce the risk of the grantee receiving the property from unforeseen claims. Very often, these quitclaim deeds are also used in circumstances where little or no money is exchanged.

Covenant Deed

Covenant deeds provide a limited warranty of title. These types of deeds only convey a warranty for the time that the grantor actually owned the property. Under a covenant deed, the grantor’s sole warranty is that they did not cause any title issues during their ownership of the property. No warranties are made regarding what may have occurred prior to the grantor acquiring title.

Warranty Deed

In most transfers in Michigan, the seller conveys a warranty deed to the buyer which includes the following six covenants:

  • Covenant of Seisin – Grantor guarantees they have legal title and possession of the property.
  • Covenant of Right to Convey – The grantor guarantees they have the legal ability to convey the property to the grantee.
  • Covenant Against Encumbrances – The grantor guarantees that the property is not encumbered by any liens or mortgages other than those specifically mentioned in the deed.
  • Covenant for Quiet Enjoyment – The grantor guarantees that the grantee has the right to quiet possession and use of the property.
  • Covenant of Warranty – The grantor guarantees they are transferring valid title and possession that the grantee has a right to defend against.
  • Covenant for Further Assurances – The grantor guarantees they will defend the grantee’s title against any claims of superior title from others that arise in the future.

Ladybird Deed

A ladybird deed is not used for a sale, it’s part of your estate plan. Owners transfer the land to beneficiaries, normally children or other family members. But reserve certain rights to themselves. For example, they retain a life estate in the property. By retaining a life estate, owners retain the right to occupy the land for their lifetime. This includes the right to cancel the transfer by selling the land to someone else first.

This gives an owner the option to move or sell the house while they’re alive. But if they die while owning the land, the beneficiaries can receive it and avoid probate court.

Choose Experience | Choose Fausone & Grysko, PLC

As you can see, not all deeds are created equal. If you want to ensure your estate is in good hands, call the experienced attorneys at Fausone & Grysko, PLC. Contact Attorney Denise Medina today at (248) 912-3220, or by email at dmedina@thefgfirm.law.