use of warranty deed

[bnb]

What is the name of your state? ARIZONA

My boyfriend and I want to buy each other's houses, so we jointly own both. I was told by a title company that I should use the special warranty deed because we are not married, and want to assure that if one of us dies, the other gets full ownership of the houses. Everything I can find about special warranty deeds or regular warranty deeds talks about liens and past problems with title (not our concern). What's the right way to go here? What other things should I know about this transaction?

[justalayman]

first, you should not do this. Non-marital sharing of homes can be a huge pain in the ass IF you break up before you die.

Just a warning there. You will still do what you want but it is most often a bad idea.

the quitclaim, general warranty, special warranty deed does not matter because of marriage.

QC deed: simply releases any interest you have in a property to whomever is named on the deed. It doesn;t even guarantee you actually had any interest in the property. It does not warranty any claim of merchantability of title.

special warranty deed: warrant that there are no defects in the title due to only your actions. You do not warranty against any prior claim by any other. Protects the buyer from your mistakes or misdeeds that can be placed against the property.

general warranty deed: you warrant the title is clear and merchantible and there are no other claims against the property. If there are, you give guarantee you will defend against those claims and to make the buyer whole should there be any claims against the title any time in the future.


Yes, past claims could be your problem, either one of you. Due to not being married, I would suggest each of your insist upon a general warranty deed. Should you dissolve your relationship prior to death, that would aid in the continuity of title guarantees.

You both should have (and will need to purchase new) a buyers title insurance policy should there ever be any claims against the title. It is a relatively cheap piece of insurance and peace of mind.

Title insurance does seem redundant to the deed type (if general warranty) but they each have their purpose in the big picture.

What you actually need to be worried about is how title is actually held. If you want it to pass to the other you need to totel it "joint tenancy with rights of survivorship" or whatever your state requires for that to be true.

that type of title allows the property to bypass probate and simply pass to the survivor. You cannot will away any interest in property that is held in that manner.

Be aware though, it is not difficult to change that type of title to "tenants in common", which would give each owner the right to will their interest to any other.

In some states, to enter a joint tenancy, you will both have to transfer title to a 3rd party (straw man) so you both gain title to the property at the same time. Time is one of the requirements to allow a joint tenancy and by owning it first and then deeding to to yourself and another, you maynot be able to deed it as a "joint tenancy".

Be cautious with this because even though you may believe you have a joint tenancy, if it was not allowed due to some error (such as the time issue), it will automaticaly be considered a "tenants in common" ownership with no rights to survivor built in.

[LindaP777]

Are both properties free and clear of all mortgages and liens?

Think worst case scenario for just a minute . . . you put him on the title to your house and then he leaves you for another woman. You want to sell, but he says, "No". He's part owner, so you can do nothing with your house until he gives his permission. If you were married and this happens, the judge in the divorce would order the resolution. When you are not married and own property together, things can go very, very wrong when/if they do go wrong!