A deed is an instrument that transfers the title of a piece of real property from one person or entity (the “grantor”) to another person or entity (the “grantee”). Different real estate transactions often use different deed forms. These are the most commonly used Oregon deed forms.
An Oregon warranty deed, sometimes called a general warranty deed, transfers a complete, unencumbered, defect-free ownership interest from a grantor to a grantee. The warranty is a guarantee that the grantor’s interest is free of any undisclosed defects or encumbrances.
This warranty applies not just to defects caused by the grantor, but also to those of prior owners extending back many years. If the grantee later learns that there were defects in the title, the grantor is responsible for curing those defects to give the grantee a clean title.
In Oregon, a quitclaim deed transfers the grantor’s entire interest in a specified piece of property to the grantee. However, with a quitclaim deed, the grantor makes no guarantees whether there are any undisclosed defects or encumbrances.
Because a quitclaim deed offers no protection to the grantee, they’re rarely used in real estate purchase transactions. The most common uses for quitclaim deeds are gifts between family members and transfers between former spouses in a divorce.
A special warranty deed is similar to a warranty deed, except that the scope of guarantees under a special warranty deed is more limited. An Oregon special warranty deed guarantees that the grantor has not created or suffered any undisclosed encumbrances or defects.
A special warranty deed makes no guarantees as to whether prior owners have caused or suffered any encumbrances or defects. This type of deed offers more protections than a quitclaim deed but fewer than a general warranty deed.
In Oregon, a deed of trust is an instrument used by a lender to secure a loan. The borrower issues a deed of trust to the lender as security for their loan. The lender then becomes a trustee of the property. If the buyer defaults, the lender can sell the property without the help of the courts to collect the amount due.
In other states, lenders may do this type of security with a mortgage note. Under a mortgage, the lender must use the courts to foreclose on real property and collect on the debt. Oregon does not use mortgages – only deeds of trust.
Here are some common questions about Oregon property deeds.