There are many types of deeds concerning real estate. Although the word "deed" is used commonly the deeds suggested in this article varies greatly. Some of the deeds may very well save your property or cause you to have legal consequences if you are not very careful.

-1. Deed in lieu of foreclosure

A deed in lieu of foreclosure is used when the homeowner is in foreclosure and he desires that the property not go through the full process. The homeowner and the bank make a legal agreement and agree to turn the home back to the bank. Basically a turn key deal. The homeowner walks away without a foreclosure on his record, but his credit still shows that he did not satisfy his loan and thus has an undesirable credit report. He is also responsible for any capital gains on the property. Capital gains is accessed against the amount that equals what the bank loss during the sale. So if he owed $200,000 and the bank sold the property for $178,000, he owes capital gains on the difference, plus cost of selling the home.

-2. Quit claim deed

A quit claim deed is where the owner turns over his rights to the property to another person. This is done in many cases such as in a short sale. A joint owner on the property will quit claim the deed to the primary owner so that they do not have to qualify for the short sale also. Sometimes a quit claim is used when seller financing is involved. Any alienation of the title is against the owners mortgage which specifically states that the owner may not alienate or transfer rights to the property to anyone without bank approval. 

-3. A warranty deed

A warranty deed will transfer the ownership to a buyer and promises the buyer that they (seller) owns the title to the property. The seller further warrants that he has a title free and clear of any other claim of ownership. The seller states in the warranty deed that he, the seller, will compensate the buyer if he is wrong.

- 4. A trust deed

A trust deed in used in connection with a mortgage. So the title of the property cannot be transferred until the loan is paid in full. So basically a deed of trust is used to transfer intention upon which is completed when the borrower pays off the loan. Once the loan is paid in full, the bank's ownership ends.

- 5. A tax deed

Tax deeds are issued by a public officer after the sale of a property due to the owner not paying his owed taxes. This type of deed does not transfer title, as in most states the owner has certain amount of day where he may redeem his property by paying the costs.