People who are handling real estate transactions hear a variety of terms during the process. “Deed” and “title” are two of these. They’re often used interchangeably, but they aren’t the same thing.
In simple terms, a title is the legal ownership of a property, and a deed is the written document that’s used to transfer ownership rights from one entity to another. This distinction is important because many property disputes stem from misunderstandings about various aspects of deeds and titles.
How do deeds transfer property rights?
A deed is a formal legal document that identifies the person transferring the property, the person receiving it and the property that’s being transferred. It should be signed, delivered, accepted and recorded with the county office that keeps these records.
Not all deeds are the same. Different deeds have different levels of protection. A quitclaim deed transfers the interest the signer has to the property, but it doesn’t come with a guarantee that the signer has any ownership or that the property Is free of other legal claims. A warranty deed is a stronger deed because it includes guarantees about ownership and the absence of certain title problems.
How can parties in real estate transactions protect their interests?
One of the most important things you can do if you’re purchasing real estate is to learn about the type of deed that you’re receiving. From there, you can look into any potential deed or title issues that may be present. Having legal assistance with this aspect of the purchase may be beneficial so you don’t overlook anything important.
