A deed to property is a signed writing by which land is conveyed from a seller of real property to a buyer.  A deed to property is often quite a short document, but the deed has a significant legal impact upon parties to a real estate transaction, transferring ownership of the property when the deed is delivered to the buyer.  Although a deed to property can apply to personal property, the document is most commonly associated with transfers of property in the real estate context.

A deed to property must include the names of the property seller and of the buyer, as well as a legal description of the property.  The seller of the property must sign the deed, usually making him or her responsible to the purchaser for any claims against the property or conditions on the property.

A deed to property is required to be in writing, as are all contracts related to the transfer of real property.  Every state has its own laws regarding what a real estate transaction must include, including specifications for what must be contained in a deed to property, and the requirements of the specific jurisdiction must be met in order for the deed to property to be a valid legal document that is enforceable in a court of law.

Deeds to property may be recorded.  While not a legal requirement, recordation of a deed to property is a good idea, in that it makes the change in ownership of the property a public record.  This is useful for subsequent transfers of the property, so that a chain of title can be established by prospective future buyers-that is, the history of who owned the property in question and what interests they had therein, and during what time frame.

Recording of a deed is done at a county office, usually called the recorder´s office, the land registry office, or the register of deeds.  Most often, a real estate broker or a title company involved in the transaction will take care of the recordation. 

Many types of deeds to property exist.  The two most common types are a warranty deed and a quitclaim deed.

A warranty deed is a deed to property that transfers the legal ownership of a parcel of real property from the seller to the buyer, and which promises specifically that the seller has good title to the property which he or she is legally able to transfer.  This is crucial, so that a buyer is not faced with an impairment of his or her title once the transfer of the property is complete.  A warranty deed provides the buyer in a real estate transaction with the greatest security and the utmost protection of interests in the property; the seller must warrant that no liens or encumbrances not disclosed in the deed exist against the property.  In addition, a seller in a warranty deed transaction agrees to personally defend against any defects subsequently found in the deed.

One variation on a warranty deed is called a special warranty deed.  Special warranty deeds are similar to general warranty deeds, but whereas a general warranty protects the purchaser against any and all claims against the property, a special warranty deed limits the seller´s responsibility to claims that arose during the time in which the seller owned the property, and not to any time prior to that ownership.

A quitclaim deed is a deed to property that allows the seller to transfer to the buyer his or her own interest in the property, but which does not guarantee the extent of that interest.  Quitclaim deeds are a riskier proposition for the buyer in a real estate transaction, since although he or she is being transferred all of the ownership rights and responsibilities that the seller possesses, there is no requirement that those rights and responsibilities are exhaustive with respect to that particular real property.  Quitclaim deeds are especially common in divorce situations during the division of assets; one spouse will usually grant his or her interest in a marital property to the other spouse by use of a quitclaim deed.

GBrey

more about Deeds...

The Deed Explained

Anyone who has ever bought property is aware of the importance of the deed. When the issue of the deed is discussed, most people will nod sagely and discuss the matter as though they were experts just because they possess one. As in a lot of other areas with a lot of other terms, though, having some notion of what a deed is does not mean that the holder of a deed realizes all that that possession implies. Here are some thoughts that should help clarify what a deed is, and some different scenarios that pop up from time to time where deeds are concerned.

What is a deed?

The term deed does not only apply to real estate. The term deed can apply to any document used to grant some kind of right. This includes powers of attorney and university degrees; both are legal instruments that confer rights on the individual that holds them.

In real estate, the term deed refers to the rights of ownership of a piece of property. The deed is used to transfer title (owner´s interest) from one person to another. A deed will often include a description of the piece of property (metes and bounds) so that all confusion as to the extent of the property is recognized. A deed must be granted by the legal owner of the property in question, and the receiver of the deed must be legally able to receive ownership.

Special warranty deed

Deeds are divided in part according to the promises implied by the seller and the remedies to fix any problems that are provided in case the promises (warranties) are not met. Special warranty deeds are limited only to claims that occur after the old owner (grantor) obtained the real estate. In other words, a special warranty deed will only apply to a claim on a claim against a rotting foundation if this occurred when the previous owner held title. If the foundation was rotting when the grantor took possession and the grantee wishes to file a claim, then a general warranty deed is needed. Bargain and sale deeds release the grantor from responsibility of any claims, as the property in question has most commonly been seized and sold at auction by a bank or other official body.

 What a deed is not

A deed is not a contract. What it is is a documentation of the transfer of real estate (or real property, as opposed to personal property). Deeds should be singed by a witness or notarized in order to be considered public including constructive notice. Some areas may require that deeds are recorded within a specified time period in order to remain valid. At other times, deeds are just verbal agreements between the grantor and the grantee, but in this case the specificities apply to the two parties only.

What is not a deed

There are several real estate terms that include the term deed. These terms are misleading, as the documentation in question is not really a deed at all. An example of this is the quit claim deed. The quit claim deed is actually the opposite of a deed, as it cedes all claim to a piece of property rather than laying ownership to it.

Deed of trust (Not Used in Florida)

A deed of trust also does not transfer ownership of a piece of property to a new owner. Instead, it acts in the same way as a mortgage. The title of the property is held by a lending company, who holds the title against money owed for the possession of the property by the owner. This title is held in escrow by the lender until such time as the loan is paid off. The title is then transferred to the owner.

Deeds are the most commonly used term in real estate, and they are a pretty basic concept. However, real estate is governed by law, and nothing in law is ever allowed to remain a simple concept. It is important for all property owners to understand what a deed is and what a deed is not, and which documents are actually considered to be deeds. It is also important to understand the various other terms related to real estate that include the word deed.

GBrey

Note:Contact an attorney on all legal questions or legal issues. A real estate agent is not qualified to give legal advice or tax advice and is not licensed to give legal advice or tax advice.