What Is a Deed in New York Real Estate and Why Does It Matter?

At the closing table, the single most important document exchanged is the deed – the legal instrument through which ownership of real property transfers from seller to buyer. Most buyers and sellers sign it or receive it without fully understanding what type of deed it is, what it conveys, and why the type matters.

What a Deed Does

A deed is a written, signed, and properly recorded document that transfers title to real property from one party (the grantor) to another (the grantee). It identifies the property being conveyed – typically by legal description from the county records – and specifies the type of ownership being transferred.

Recording the deed with the county clerk’s office after closing makes the transfer part of the public record and puts the world on notice that the new owner holds title. The recording is what formally establishes your ownership in the eyes of the law and any future parties who search the property’s title history.

Types of Deeds Used in New York

Bargain and Sale Deed with Covenants Against Grantor’s Acts – This is the most common deed type in New York residential real estate transactions. It conveys the property and includes a covenant – a promise – that the grantor has not encumbered the property during their ownership. It does not warrant title against defects that existed before the grantor owned the property. This is why title insurance exists: it covers risks that even a bargain and sale deed with covenants doesn’t guarantee against.

Full Covenant and Warranty Deed – Provides the broadest protection to buyers, including warranties against all title defects whether they arose before or during the grantor’s ownership. Less common in New York residential transactions.

Executor’s Deed / Administrator’s Deed – Used when property is being conveyed by the estate of a deceased owner. Conveys whatever interest the estate holds, with limited warranties.

Quitclaim Deed – Conveys only whatever interest the grantor happens to have, with no warranties about the quality of that interest. Used in transfers between family members, in divorce settlements, or to clear technical title issues. Should almost never be used in an arm’s-length sale – if a seller offers only a quitclaim deed in a standard transaction, this is a significant red flag about the title.

Joint Ownership Options in New York

How the deed is titled determines how the property is owned and what happens to it if one owner dies.

Tenants in Common: Each owner holds a specified percentage interest that they can sell, bequeath, or otherwise transfer independently. If one owner dies, their share passes through their estate according to their will or intestacy laws.

Joint Tenancy with Right of Survivorship: Both owners hold equal shares, and if one dies, their share automatically passes to the surviving owner outside of probate.

Tenancy by the Entirety: Available only to married couples in New York, this provides joint tenancy protections plus additional creditor protection.

The choice of how to hold title has significant estate planning and tax implications that your attorney should advise on before the deed is prepared.

I make sure every buyer I work with understands what they’re receiving at the closing table – including the deed type and how title is being held. Call me at (321) 447-4259 or visit movewithricky.com.

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Rakesh (Ricky) Khanna | Licensed Real Estate Salesperson
Better Homes and Gardens Real Estate Realty Connect
Call or text: (321) 447-4259 | movewithricky.com