When buying or selling a home, “title” and “deed” are often used interchangeably. However, they mean different things. Understanding the difference between a title and a deed is vital in real estate transactions.
House title
The title to a house and property makes you its legal owner, giving you the right to sell it. It also allows you to live on or use the property per the zoning laws.
A title company or an attorney issues a house title after conducting a title search to ensure there are no outstanding claims or disputes over the property’s ownership. This is an essential part of any real estate transaction and helps safeguard home buyers and mortgage lenders from title defects and potential losses, such as outstanding liens, conflicting wills and unpaid taxes.
More specifically, when one person holds the title, it is called a “sole ownership,” whereas when more than one person holds the title, it is called a “joint tenancy.” This type of title is often chosen by two people who are married or partners.
A deed
Continuing with the difference between a title and a deed, the deed to a property is a legal document that transfers the ownership of a property from one party to another. Both the buyer and the seller must sign this document. It must then be recorded in the public records of the local county government.
A deed needs to state who the grantor or seller is and who the grantee or buyer is. It must also contain a sufficient description of the house and property, including property lines. Additionally, a deed needs to comply with the laws of the community.
There are many different types of deeds. This includes:
- General Warranty Deed
- Special Warranty Deed
- Bargain and Sale Deed
- Grant Deed
- Quitclaim Deed
Summary
In summary, the difference between a title and a deed is that the title is a legal document that confirms ownership of a property and outlines the rights associated with that ownership. In contrast, a deed is a legal document that transfers ownership from a seller to a buyer.
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