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What is a Fiduciary Deed?
Key Features of a Fiduciary Deed
- The fiduciary (seller) acts on behalf of another party, such as an estate, trust, or guardianship.
- The deed does not provide warranties about the property’s title, except that the fiduciary is authorized to sell the property.
- The fiduciary is not personally liable for any defects in the title before or during their control of the property.
It does not guarantee a clear title beyond the fiduciary’s actions.
How is a Fiduciary Deed Created?
A Fiduciary Deed in Ohio typically includes:
- Grantor Information: Identifies the fiduciary and their legal authority e.g. executor of an estate.
- Grantee Information: Identifies the buyer or recipient of the property.
- Legal Description of Property: Includes a metes and bounds description, lot number, or parcel ID.
- Statement of Fiduciary Authority: Specifies the fiduciary’s role and legal authority to transfer the property.
- Limited Covenant: The fiduciary guarantees only that they have the right to transfer the property but makes no further warranties.
- Execution & Acknowledgment: The fiduciary signs the deed, often before a notary public.
- Delivery & Acceptance: The deed is delivered to the buyer, completing the transfer.
A Fiduciary Deed is most often created and filed by an attorney representing the grantor and the grantor’s estate.
What are the Legal Covenants of a Fiduciary Deed in Ohio Real Estate?
Unlike a General Warranty Deed or even a Special Warranty Deed, a Fiduciary Deed typically contains only one legal covenant:
Covenant of Authority – The fiduciary guarantees that they are legally authorized to sell or transfer the property but makes no warranties about past ownership, liens, or encumbrances.
A Fiduciary Deed in Ohio Real Estate DOES NOT INCLUDE these covenants:
No Warranty of Title – The fiduciary does not promise that the title is free from past defects.
No Warranty Against Encumbrances – The fiduciary does not guarantee that the property is free from liens, judgments, or other claims.
A Fiduciary Deed is commonly used in Ohio in situations where a legal representative must transfer real estate on behalf of another party.
Common Use Cases:
- Estate Sales: When an executor or administrator sells a deceased person’s property.
- Trust Sales: When a trustee transfers property from a trust to a new owner.
- Guardianship Sales: When a guardian sells property on behalf of a minor or legally incapacitated person.
- Bankruptcy Sales: When a court-appointed trustee sells property as part of bankruptcy proceedings.
- Court-Ordered Sales: When a court orders a property sale due to foreclosure or legal settlements.
Fiduciary Deeds vs Special & Warranty Deeds
| Types of Deeds In Ohio Real Estate | |||
| Feature | Fiduciary | Special Warranty | General Warranty |
| Title Guarantee | No guarantee | Limited guarantee (only during grantor’s ownership) | Full guarantee (covers all past owners) |
| Encumbrances Warranty | None | Only for grantor’s ownership period | Covers all encumbrances, past and present |
| Who Uses It? | Fiduciaries (executors, trustees, guardians) | Commercial sellers, banks, estate representatives | Individual homeowners, traditional home sales |
| Buyer’s Risk Level | High risk – no title guarantee | Moderate risk – only seller’s period covered | Low risk – full warranty protection |
| Need for Title Insurance? | Highly recommended | Recommended | Still recommended but lower risk |
| Typical Sale Type | Estates, trusts, court-ordered sales | Foreclosures, commercial transactions, estate sales | Standard residential transactions |
Frequently Asked Questions about Fiduciary Deeds
A Fiduciary Deed only guarantees that the fiduciary has the authority to sell the property. It does not provide any warranty that the title is free of defects or encumbrances.
No, it does not guarantee a clear title. Buyers should perform a title search and purchase title insurance for protection.
Only a legally authorized executor, administrator, trustee, guardian, or court-appointed fiduciary can issue a Fiduciary Deed.
Because the executor of an estate may not know the property’s full history, they avoid liability by issuing a Fiduciary Deed instead of a Warranty Deed.
Yes, a Fiduciary Deed can be challenged if:
- The fiduciary was not properly authorized to sell the property.
- The deed was executed fraudulently or under duress.
- There were legal defects in the estate administration process.
It’s not legally required but is highly recommended because the deed does not guarantee title clarity.
No, but after a title search and legal confirmation, the buyer may be able to request a new deed with additional warranties.
No, they can also be used for transfers without a sale, such as transferring property to an heir or trust beneficiary.
Ohio follows strict fiduciary laws, requiring the fiduciary to have court approval or legal authorization before transferring real estate. Some other states may have more relaxed rules.
How Fiduciary Deeds Might Be Different in Ohio Real Estate Law
- Court Approval May Be Required – In Ohio, fiduciaries (especially guardians) may need a court order before selling property.
- Strict Executor Rules – Ohio has clear laws on how executors and trustees must handle real estate sales from estates.
- Ohio Revised Code (ORC) Compliance – Fiduciary Deeds in Ohio must comply with ORC Title 21 & Title 53, which govern probate, trust, and fiduciary transactions.
If you are in need of a Fiduciary Deed, please contact our law office for a free initial consultation.
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What is a General Warranty Deed in Ohio Real Estate Law
The General Warranty Deed provides the highest level of protection for buyers in Ohio real estate transactions. The grantor guarantees that they hold a clear title free of encumbrances and promises to defend the title against future claims, even those predating their ownership.
What is a Special Warranty Deed in Ohio Real Estate Law
A Special Warranty Deed limits the grantor’s guarantees to issues arising only during their period of ownership. It protects the grantee against claims from the grantor’s time but not before.
What is a Fiduciary Deed in Ohio Real Estate Law
A Fiduciary Deed is a type of deed used when a property is transferred by a fiduciary, such as an executor, trustee, guardian, or conservator, who is acting on behalf of another party. In Ohio, fiduciaries use this deed to sell or transfer property without making personal warranties about the title.
What is a Quitclaim Deed in Ohio Real Estate Law
A quitclaim deed is a legal document used to transfer any ownership interest the grantor (person transferring the property) may have in a property to a grantee (person receiving the property). Unlike other types of deeds, a quitclaim deed provides no warranties or guarantees about the property’s title. It only conveys the grantor’s current interest, if any, and does not promise that the grantor actually owns the property or that the title is clear of liens or encumbrances.
6 Types of Deeds In Ohio for Transferring Real Estate
A Deed is a legal document created for the conveyance of title to real estate in Ohio. Understanding the different types of deeds available can empower buyers, sellers, and real estate professionals to navigate transactions with confidence.
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