Three types of deeds can be used in state

REAL ESTATE MAILBAG

May 15, 1994|By MICHAEL GISRIEL

Q: What are the different types of deeds used in Maryland?

Andy Wolf, Reisterstown

A: There are three types of deeds generally used to convey property in Maryland:

* 1. Quitclaim deed -- transfers any title that the seller has. This deed gives no assurances that the title is good; the seller is giving to the buyer whatever title he may have. This deed is usually used to cure a title defect or convey title when the seller is unsure about the validity of title.

* 2. General warranty deed -- warrants that the title is free of any defects, either prior to his ownership or arising out of his ownership in the property. The seller warrants to the purchaser that the title to the property is good from the beginning of time until the purchaser takes title.

* 3. Special warranty deed -- warrants that the seller did nothing personally during his ownership of the property that would create a defect in the title to the property. This is the type of deed most often used in Maryland.

XTC Q: My real estate agent and mortgage company gave me an estimate of cash needed for closing. When do I get a precise amount?

J. Maxino, Towson

A: The title company, which conducts the closing, will have a dollar amount, subject to small adjustments, about 24 to 36 hours before closing.

The settlement statement, or HUD-1 statement, will show all costs in the transaction. These costs -- like commissions, interest rate, points to lenders, title charges, taxes and other government charges -- must be collected from a variety of sources. Some of these items are not available until two days before closing.

You should select your title company within 10 days of signing the sales contract. Have the real estate agent give the title company a copy of the sales contract and commission statement and inform them of any other costs that need to be reflected on the settlement statement.

When you receive the lender's Good Faith Estimate, send a copy to the title company. This estimate shows your interest rate, points and lender charges. As soon as the title company has the tax information, they can give you a reasonably accurate amount needed for closing.

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