A deed is a legal document that assigns ownership of a home, or a piece of land, from one individual to another. The physical deed document will typically define, in writing, the precise location of the property. It will also include the names of the former owners of the property and the new owners’ names.
Many different types of deeds may be utilized to transfer the ownership property from one person to another, but all deeds must be signed by the individual transferring the property to the new owner. Further, the signature must be notarized to establish that the ownership transfer is valid.
A deed of title, or title deed, is a detailed legal document that transfers the title of real estate from one individual to another. Full ownership of a piece of real estate is provided to the new owner. Usually, such a transfer would occur through a standard real estate sale; however, a title may be transferred in other ways. An example of this would be when someone gifts a portion of land to another individual.
The title deed is categorized as a general warranty deed in most cases. A general warranty deed is a distinct type of deed in which the current owner assures that they hold a clear title to a piece of real estate.
A general warranty deed is used for most real estate deed transfers because it delivers any deed’s most significant amount of protection. It may be known as a grant deed in some states.
Deeds of title should not be confused with a deed of trust. A deed of trust grants a lender or mortgage lender a lien on the property if a debt is owed.
What Is a Deed?
Deeds transfer titles. A deed is the basic legal document that would transfer the ownership (title) from one individual to another. A deed is signed by the individual selling or transferring the property rights, called the grantor. The grantee is the person purchasing or taking possession of the property rights. Easy enough, right? But where is the mix-up, and how can we differentiate the two terms?
What Is the Difference Between a Deed and a Title?
The actual deed itself and having title to a piece of property are slightly different. A deed is the actual legal instrument or written document that conveys property ownership from one individual to another. When purchasing a home, you will be signing the deed to the home, creating your right to claim ownership of that house.
A title refers to a legal relationship between a person and their land. A title creates a right to a specific piece of property. An example of this would be getting a loan from a bank to buy a piece of land. The bank will hold title to the property until the loan has been paid off in full, then the bank will transfer the title to the property to the borrower.
Purpose
A deed is evidence of a specific event of transferring the property’s title from one person to another. A title is a legal right to use and modify the property how you see fit or transfer interest or any portion you own to others via a deed. A deed conveys the right of the owner to claim the property as opposed to the title that names the ultimate holder of the property.
Process
Let’s stroll through the procedure where these two phrases will apply to understand title and deed better. During the closing process, a “title search” will be ordered. A title search is a probe of public records that affect the ownership (title) of the property.
The public records explored are previous deeds, mortgages, paving assessments, liens, wills, divorce settlements, etc. After the search is completed, a title examiner will specify and verify the property’s legal owner and what debts are owed against the property. The examiner will use all of the above data to create the “title abstract.” The title abstract is used to resolve if the property has a clear title, which means the seller has the right to transfer the property. The settlement agent will then organize all documents and schedule the closing. Included in these closing documents is the deed. While closing, the seller signs the deed, transferring the title and ownership of the property.
Additionally, the buyer will sign the new note and mortgage and pay off the old loan. Questions about deciphering the difference between title and deed? A professional attorney on LegalMatch can help you every step of the way.
How is a Transfer of Title Completed?
Regardless of how the new owner comes to acquire the title to the property, a deed of the title must be referenced and recorded with the county recorder’s office. A deed of title creates a written record of the property transfer and can prevent legal altercations later on. Deeds must be recorded for title searches, as well as the certainty of title. A title search will provide an interested party with important information on the property, such as the property’s chain of ownership.
A title search will also provide information on any encumbrances, such as liens. Recording a deed grants the property’s owner certainty of title, meaning that the recorded deed supplies a degree of assurance that the property owner does indeed own the premises. Additionally, it assures that the property owner’s rights are secured against legal challenges.
What if There Is a Dispute Regarding the Deed of Title?
One of the most common disputes regarding title deeds is resolving who the previous owner was. Not only would such a controversy hold up the pending sale, but it could also result in a lawsuit. Should such a dispute arise, it will likely be necessary to search title deed records so that all parties involved can view the chain of title.
Chain of title refers to the history of the passing of title from the present owner, all the way back to the original owner.
Chain of title may be designated through various documents, including but not limited to:
- Deeds to the property;
- Foreclosure documents;
- Documents from judgments of distribution; and,
- Death certificates from joint tenants and other relevant parties.
Viewing the chain of title is an essential step to clarifying who is entitled to own the property in question. As you can imagine, a title dispute can be severe and stressful, so ensuring that the chain of title is transparent can help avoid it in the future.
Do I Need an Attorney for Issues with Deeds of Title?
Suppose you are attempting to transfer ownership of a piece of property or are otherwise experiencing any issues with deeds of title. In that case, you should consult with a skilled and knowledgeable property attorney. The attorney can educate you on your state’s specific laws regarding the matter and conduct a title search and represent you in court as needed.
A lawyer on LegalMatch may assist you with any title or deed issues you may encounter. Save yourself the time and hassle of researching the deed to your property. Hire a lawyer on LegalMatch today.
