What I Learned (Again) About Deeds

Some lessons, apparently, I have to learn twice. Or three times.

This one came out of some reading I did recently and led to a bit of a "well, nobody told me" moment.

I have used phrases like "the property conveys with a warranted trustee's deed" or "the executor's deed is warranted" — and no one flinched. Turns out that phrasing deserves a closer look. The type of deed and the level of warranty are actually two separate questions.

General warranty deed — This is the most common deed used in standard real estate transactions. The seller guarantees they are conveying the property free of any claims and asserts they are legally authorized to sell. The seller stands behind the title — if a claim against it surfaces down the road, that's on the seller. This deed comes with supporting paperwork — an abstract, title insurance, or both — that backs up that guarantee. In practice, you're not likely to see a general warranty deed without it. That's the whole point.

Special warranty deed — This offers less protection. The grantor guarantees there were no title defects during the time they owned the property, but makes no promises about anything that happened before. You see these more often in commercial transactions.

Quitclaim deed — This one transfers whatever interest the grantor has and makes zero promises about what that interest actually is. Because there is no title warranty, quitclaim deeds are best used between people who already trust each other, such as family members or divorcing couples, rather than in a market sale to an unrelated buyer. If you are on the receiving end of a quitclaim deed in a purchase transaction, do your due diligence before you close — and make sure you record it promptly after.

Trustee's deed — When property is held in a trust and the trustee is transferring it, this is the correct deed to use. It shows the property is coming out of the trust and that the trustee had authority to make that transfer, which protects the chain of title for future transactions. Here is the part I had to learn: a trustee's deed can be written as either a warranty deed or a quitclaim deed — you can tell by whether it says "seller warrants to buyer" or "seller quitclaims to buyer." So the deed type and the warranty level are two separate things. Saying it is "warranted" isn't wrong exactly — it's just incomplete without knowing what the deed itself says.

Executor's deed — This is used by an estate executor to transfer property according to a will. Same principle applies — the executor's deed tells you who is signing and why they have authority to do so, but it doesn't automatically tell you the warranty level. That depends on the language in the deed itself.

One More Thing: Power of Attorney at Closing

Title companies do not love real estate powers of attorney. The practical reason is this: title companies have underwriting guidelines that require them to verify the POA is durable, properly executed, and hasn't been revoked. They want the actual property owner at the table — not a representative whose authority might have been pulled last Tuesday without anyone knowing.

One Last Thing — Delivery vs. Recording

I once had an attorney tell me at a closing that once the seller handed the deed to the buyer — and I believe there may have been a piece of dirt involved, though I could have dreamed that part — the property was now legally the buyer's. If you want to watch a title examiner have heart palpitations, have an attorney say that at closing.

Here is the thing though — they are both right, just talking about different things. In Illinois, a deed transfers ownership between buyer and seller once it is signed and delivered. Recording it is what provides public notice and protects that ownership from outside claims. Until the deed is entered into the public record, there is no formal notice of the change in ownership. So between the two parties at the table, the attorney was correct — delivery transferred ownership. From the title company's perspective, it isn't official until it hits the courthouse.

In a standard closing the title company handles recording the deed — it is part of what they do. If you are handling a quitclaim deed outside of a title company closing, get yourself to the courthouse with the original. They do not accept copies. Do not wait, do not set it on the kitchen counter and get to it later. Go record it.

In the meantime, be good to each other out there.

Happy Bidding! Kara C. Belcher-Miller

This post reflects my experience and general understanding of Illinois real estate practice. It is not legal advice. If you have questions about deed types or title questions specific to your situation, please consult a licensed Illinois real estate attorney — or ask your title company. They don't give legal advice, but they do know what they need to insure it.