0 false 18 pt 18 pt 0 0 false false false When purchasing property at tax deed auctions there are a few different kinds of deeds that you may receive. Here are a few: Warranty Deed - type of deed where the grantor (seller) guarantees that he or she holds clear title to a piece of real estate and has a right to sell it to the grantee (buyer). The guarantee is not limited to the time the grantor owned the property—it extends back to the property's origins. While a general warranty deed is normally used for residential real estate sales and transfers, special warranty deeds are more commonly used in commercial transactions. Bargain and Sale Deed - implies that the grantor has the right to convey title but makes no warranties against encumbrances. This type of deed is most commonly used by court officials or fiduciaries that hold the property by force of law rather than title, such as properties seized for unpaid taxes and sold at sheriff's sale, or an executor. Deed of Trust - In some jurisdictions, a deed of trust is used as an alternative to a mortgage. A trust deed is not used to transfer property directly. It is commonly used in some states, California, for example, to transfer title to land to a “trustee”, usually a trust or title company, which holds the title as security ("in escrow") for a loan. When the loan is paid off, title is transferred to the borrower by recording a release of the obligation, and the trustee's contingent ownership is extinguished. Otherwise, upon default, the trustee will liquidate the property with a new deed and offset the lender's loss with the proceeds. Typically when buying tax deed properties at tax deed sales, you will receive a bargain and sale deed. This is the not the same as a warranty deed. When receiving a bargain and sale deed you receive title to the property but the deed may or may not be free of all other liens and encumbrances. It’s still considered a good title but may not be marketable. This means that title insurance on the bargain and sale deed is a long shot making the sale of the property difficult. There are a few things you can do to make tax sale properties marketable. Find an investor or buyer that will accept a Quit Claim Deed. A quit claim deed is where a person (the "grantor") disclaims any interest the grantor may have in a piece of real property and passes that claim to another person (the grantee). In simple terms, you’re signing over your interest in the property to another person. Wait it out. After a period of time where you pay the annual taxes on the property, it’s possible to get title insurance on the property. The best solution is an action to quiet title. Quiet title actions are used to clear a particular or known claim against the property. It is a lawsuit brought in a court having jurisdiction over land disputes, in order to establish a party's title to real property against anyone and everyone, and thus "quiet" any challenges or claims to the title. No Risk Investor is the ultimate resource and tool for tax liens, tax deeds, and real estate investors all over the world.  No Risk Investor takes incredible pride in its ability to help students take action, get into properties, and begin the journey to financial freedom.  No Risk Investor provides county lists, property lists, online auction lists, comprehensive training and education, an auction calendar, and online auction center, an investor community and much more for its members. Definitions thanks to Wikipedia.