Real Estate News from Brad Gough

Deed vs. Title: Know The Difference?

If you are planning to buy or sell a home, title and deed are two key terms you will want to understand. When a seller (known as the grantor) transfers ownership of a house to a buyer (known as the grantee), both the deed and the title transfer. A deed and a title, however, are not quite the same thing.

The Difference Between a Deed and a Title

The biggest difference between a deed and a title is the physical component. A deed is an official written document declaring a persons legal ownership of a property, while a title refers to the concept of ownership rights. A deed is something you will have in your physical possession after you purchase property.

Title is a bundle of rights in real property. To learn more about Title and the purpose of Title Insurance, Click Here to view one of my previous blog posts.

What is a Deed?

A property deed is a legal document that transfers property ownership from a seller/grantor to a buyer/grantee. A deed contains a description of the property (including property lines) and denotes the seller/grantor and the buyer/grantee. Both parties must sign the document to make it official.

There are different types of deeds. As both a buyer or seller it is important to understand the differences and which one is right for you. The most common type of deed that I see on most home sale transactions is a General Warranty Deed.

General Warranty Deed

A general warranty deed protects the buyer/grantee by assuring them that the seller/grantor has full title and is the sole property owner with rights to sell. It also promises that the seller/grantor has no knowledge of any property issues that may come up. It is typically prepared by a title company.

Special Warranty Deed

A special warranty deed is similar to a general warranty deed, but only guarantees title for the time the property was owned by the seller. This type of deed is not typically used for home purchases, but rather for purchase of commercial property.

Quit Claim Deed

Quitclaim deeds are typically used when a property is transferred from one legal entity to another without any money changing hands. Popular examples of transfer via quitclaim include:

Parents transferring property ownership to children

One spouse transferring property ownership to the other

Individuals transferring property ownership to trusts or LLCs

Another relatively common use of quitclaim deeds is to change the legal name written on a deed in the case of a name change. Quitclaim deeds do not come with the protections for the recipient that a buyer receives with a conventional deed.

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Carmel, In 46032


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