Types of Deeds: Bargain and Sale, Warranty and Quitclaim
The short answer: A deed is the written document that transfers ownership of real estate. The main types differ in what the seller (the grantor) promises about the title. A general warranty deed defends the title against everyone's claims. A special warranty deed covers only claims arising through the grantor. A bargain and sale deed conveys the grantor's interest, often with added promises (covenants). A quitclaim deed releases whatever interest the grantor has. New Jersey law spells out what each covenant means (N.J.S.A. 46:4-3 to 46:4-10) and treats a plain quitclaim as passing what a bargain and sale deed would (N.J.S.A. 46:5-3).
Deeds also show up on the state exam: Transfer of Title is 6% of PSI's salesperson outline, and deeds are its first topic (PSI candidate bulletin). For more terms you'll hear in a transaction, see our NJ real estate glossary.
What does a deed contain?
New Jersey law gives a short form a deed "may be made in," or one "to the same effect" (N.J.S.A. 46:4-1). It has these parts:
- Date, plus the names and residences of the parties.
- Consideration: what the grantee is giving in exchange.
- Granting words: the grantor "doth grant and convey" to the grantee.
- Description of the property, plus any covenants or other provisions.
- Signature and seal, "signed, sealed and delivered," with witnesses.
By default, a deed passes everything the grantor owns in the property. A NJ deed conveys "all the estate, right, title, interest" of the grantor, "including the fee simple if he had such an estate," unless the deed makes an exception. The old word "heirs" isn't needed (N.J.S.A. 46:3-13).
What are deed covenants?
Covenants are the grantor's promises about the title. New Jersey's statutes give short phrases a fixed legal meaning, so a deed can use a few words and carry the full promise:
| Covenant (short wording) | What the statute says it means |
|---|---|
| "is lawfully seized of the said land" (seizin) | The grantor held a fee simple in the property when the deed was delivered (46:4-3) |
| "has the right to convey" | The grantor has full power and authority to convey it (46:4-4) |
| "shall have quiet possession" (+ "free from all encumbrances") | The grantee can enjoy the land without lawful claims against it. The added phrase means free of former mortgages, judgments and other encumbrances (46:4-5) |
| "has done no act to encumber" (grantor's acts) | The grantor hasn't done, or knowingly allowed, anything that encumbers or affects the title (46:4-6) |
| "will warrant generally" (general warranty) | The grantor will defend the title "against the claims and demands of all persons whomsoever" (46:4-7) |
| "will warrant specially" (special warranty) | The grantor will defend against claims of the grantor and anyone "claiming or to claim by, through, or under him" (46:4-8) |
| "will execute such further assurances" | The grantor will sign whatever is reasonably needed later to perfect the transfer, at the grantee's cost (46:4-10) |
Writing "with general warranty" or "with special warranty" in the granting clause carries the matching covenant (N.J.S.A. 46:4-9).
How do the main deed types compare?
| Deed type | What the grantor promises | Protects the buyer against |
|---|---|---|
| General warranty | Warrants the title against everyone, usually with the other covenants | Defects from any time, including before the grantor owned it |
| Special warranty | Warrants only against the grantor and those claiming through the grantor | Problems the grantor created or allowed |
| Bargain and sale with covenant as to grantor's acts | Conveys the property and promises the grantor did nothing to encumber it | Encumbrances the grantor caused |
| Bargain and sale without covenants | Conveys the grantor's interest, with no title promises | No covenant protection; the buyer relies on the title search and title insurance |
| Quitclaim | Releases whatever interest the grantor has | No covenant protection |
The covenant meanings come from the statutes above. Labels like "bargain and sale" are standard textbook vocabulary.
Is a quitclaim deed weaker in New Jersey?
It makes no promises, but under NJ law it does transfer title. Release language such as "remise, release and forever quitclaim" is read as "grant and convey" unless the deed shows otherwise (N.J.S.A. 46:5-1). A quitclaim made after July 4, 1931, with no reservation for the grantor, passes all the estate the grantor could convey by a bargain and sale deed. The grantee is presumed to be a bona fide purchaser to the same extent (N.J.S.A. 46:5-3).
So the risk with a quitclaim isn't that it fails to transfer anything. It's that the grantor may own less than the buyer thinks, and there's no warranty to fall back on. Quitclaims are often discussed for transfers between family members or to clear up a possible claim. Whichever deed is used, a title search shows what the grantor actually holds.
Why does recording a deed matter?
Recording protects the new owner against later claims. A recorded document is notice to later purchasers, mortgage lenders and judgment creditors from the moment it's recorded. An unrecorded deed has "no effect" against a later good-faith buyer or lender who paid value without notice and recorded first (N.J.S.A. 46:26A-12).
To be recorded in New Jersey, a deed must (N.J.S.A. 46:26A-3):
- be in English (or come with a translation), be signed, and have the names printed beneath the signatures,
- be acknowledged or proved, meaning the maker (or a witness) appears before an authorized officer, who signs a certificate (N.J.S.A. 46:14-2.1),
- give the municipal tax map lot and block (or account number), the name of the person who prepared the deed and the grantee's mailing address, and
- state the true consideration, or attach an affidavit explaining why the transfer is exempt from the realty transfer fee. New construction must be marked "NEW CONSTRUCTION" (N.J.S.A. 46:15-6).
A seal isn't required, despite the old "signed, sealed and delivered" wording (N.J.S.A. 46:26A-3(b)).
Who decides which deed is used in a NJ sale?
The parties do, through their contract, usually with attorneys involved. On a typical residential sale, a licensee-prepared contract goes through attorney review, and the title company or attorney checks title before closing. Agents shouldn't advise a client on which deed or covenants to accept. That's a legal question for the client's attorney.
Our guide to title searches and title insurance explains why buyers rely on a title policy whichever deed they get, and easements, encroachments and liens covers the encumbrances that covenants talk about.
How do deeds show up on the NJ exam?
Expect definition and comparison questions, such as which deed gives the most protection, what a covenant against encumbrances promises, or why recording matters. Pair this page with property ownership on the NJ exam, which covers estates and forms of co-ownership. If you're preparing for the course, Business Elementary's 75-hour pre-licensing course is where to start.
Sources
- N.J.S.A. 46:4-1 (short form deed; via Justia, read Oct 29, 2026): https://law.justia.com/codes/new-jersey/title-46/section-46-4-1/
- N.J.S.A. 46:4-3 to 46:4-10 (statutory covenants; via Justia, read Oct 29, 2026): https://law.justia.com/codes/new-jersey/title-46/section-46-4-7/
- N.J.S.A. 46:3-13 (deed conveys all of grantor's estate): https://law.justia.com/codes/new-jersey/title-46/section-46-3-13/
- N.J.S.A. 46:5-1 and 46:5-3 (quitclaim deeds): https://law.justia.com/codes/new-jersey/title-46/section-46-5-3/
- N.J.S.A. 46:14-2.1 (acknowledgment): https://law.justia.com/codes/new-jersey/title-46/section-46-14-2-1/
- N.J.S.A. 46:15-6 and 46:15-7 (recording requirements; realty transfer fee): https://law.justia.com/codes/new-jersey/title-46/section-46-15-6/
- N.J.S.A. 46:26A-3 (prerequisites for recording): https://law.justia.com/codes/new-jersey/title-46/section-46-26a-3/
- N.J.S.A. 46:26A-12 (effect of recording): https://law.justia.com/codes/new-jersey/title-46/section-46-26a-12/
- PSI New Jersey Candidate Information Bulletin (updated 2/1/2026), content outline IX Transfer of Title: https://test-takers.psiexams.com/api/content/bulletin/1667
Last reviewed: October 29, 2026
Frequently Asked Questions
Which deed gives the buyer the most protection?
A general warranty deed. Under NJ law, the grantor promises to defend the title "against the claims and demands of all persons whomsoever" (N.J.S.A. 46:4-7).
What is a covenant as to grantor's acts in New Jersey?
It's the grantor's promise that they "have done no act to encumber the said lands," meaning they haven't done or knowingly allowed anything that encumbers the title (N.J.S.A. 46:4-6).
Does a quitclaim deed transfer ownership in NJ?
Yes, it transfers whatever interest the grantor has. A quitclaim without a reservation passes what a bargain and sale deed would, but it carries no warranty (N.J.S.A. 46:5-3).
Does a deed have to be recorded to be valid?
An unrecorded deed can still pass title between the parties, but it has no effect against a later good-faith buyer or lender who records first (N.J.S.A. 46:26A-12). That's why deeds are recorded promptly.
Who pays the realty transfer fee when a NJ deed is recorded?
The grantor (seller) pays it to the county recording officer when the deed is offered for recording (N.J.S.A. 46:15-7). Exemptions and partial exemptions exist, so check the current rules.