What is the legal effect of granting a deed to buyers in California?

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Question:

What is the legal effect of granting a deed to buyers in California?

Answer:

In California, grant deeds are also called "California Grant Deeds." They are documents that provide home buyers with specific protections. In gives CA grant deed buyers a type of insurance policy from the seller that the buyer will have no future financial or ethical liability for any challenges to their new property's ownership.

A grant deed in general is a written instrument primarily used in California ensuring the buyer that there will be no responsibility on his part for any unforeseen claims or encumbrances that could be charged against the property they are purchasing on the condition that any claim made against the property pre-dates the buyer's closing. In such a case, any claim would be the responsibility of the seller. All other states call grant deeds "warranty deeds."

A grand deed needs to be in writing. No verbal deeds are legally viable. And the grand deed that is filed must be the original document; no photocopy is acceptable. Digital files also are not acceptable as legally binding. The grant deed must clearly identify the parties involved and designate which one is the seller (grantor) and which is the buyer (grantee). They must also clearly state the property changing ownership. Considering what the document essentially is, it must also state in writing what is being guaranteed: that the property is owned free and clear by the seller (grantor), and as such the seller will assume responsibility for any future encumbrances or claims against the property. The document must also state any time limits to this guarantee. And to be completely binding, the deed has to be signed and notarized.

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