What does it mean to take a deed subject to a vendor's lien?

When discussing the concept of deed transfers, it is important to understand that it is merely a generic way of referring to all types of deed transference from one person to another. Transferring a deed is a means of ensuring that the selling and purchasing of property stays within the standards established by the laws of the country where transactions take place.

By simple definition, transferring a deed is intended to move the ownership of property from one entity to another. This could be between people or businesses or a combination of the two. But the completed deed transference allows the new owner to claim full rights and responsibilities to the property. Having said that, there are some situations where the rights of the new owner may be limited by certain restrictions.

In the case of a quitclaim deed that is transferred, the grantor doesn't necessarily have clear title to the property. This could be due to one spouse acting in behalf of someone else who is on paper the actual owner of record. By signing the quitclaim deed the grantor's interest in the property is transferred to the spouse who is allowed to move forward with the orderly sale of the property.

A warranty deed is another such deed transference that implies certain conditions regarding the general state of the property and any buildings attached to the property. For example, a warranty deed may require an action be performed following the sale - such as the repair of an air conditioner should it go out in the first year. However, the opposite may also be included in a warranty deed by freeing the previous owner from performing any repair work should something on the property breakdown as soon as the deed is legally executed and filed.

A deed with a vendor's lien is one which conveys property to the buyer along with a warranty of the title and of no encumbrances. However, it reserves a lien which favors the seller (the vendor), in that the lien continues on the deed until the complete full price of the property is paid off in full. Until that happens the seller retains the right to reclaim the property - basically foreclose if he so chooses - should the amount not be paid in full.