the difference between a title and a deed

The Difference Between a Title and a Deed

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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.

Do you need help along your real estate journey? Continue reading our blogs for more information and tips, and keep up with LCAR on Facebook, X, Instagram and LinkedIn.

benefits of owning a home

6 Benefits of Owning a Home

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Owning a home has many benefits, from building equity to having the peace of mind of knowing that where you live is yours and yours alone. The Lee County Association of Realtors has compiled a list of benefits of owning a home. Then, when you decide that you want to buy, we’ll also assist you in finding your new place!

The benefits of buying a home

For many, buying a home stands out as the ultimate dream. If you’re considering that option, here are some of the pros!

Building equity

Buying a home is an investment—with the idea that hopefully your house will appreciate in value over time. This leaves you with added value if or when you decide to sell. In other words, buying a home gives you a way to get a return on your investment.

When paying a mortgage, think about it as contributing back to your own investment, as opposed to paying rent, which is not an investment in anything you own.

Opportunity to tap into your investment

As an investment, owning a home gives you ways to tap into your equity should you need it. This could be in the form of a home equity loan, refinance, home equity line of credit or reverse mortgage.

Improving your credit score

Staying in line with the financial benefits of buying a home, doing so can help improve your credit score. This is especially important if you don’t already have much of an existing credit history. A well-managed mortgage can drive up your credit score by showing that you’re a responsible borrower.

Control over customization

Among the benefits of owning a home is the opportunity to make home repairs, upgrades and customization at your discretion without interference from a rental company.

Want to hang up a painting using nails? Thinking of repainting? Or do you want to redo the kitchen? When you own a home, the sky’s the limit as to how you customize it!

Lower costs over time

If you live in a rental, your rent may increase over time at the discretion of the leasing company. However, when you buy a home and put down a fair down payment, you may actually be paying less over time to live there than you would with a rental—especially if you have a fixed-rate mortgage.

Peace of mind

Owning a home is a gratifying experience that provides you peace of mind each and every day. Your home is yours—and no one else’s!

Summary

When it comes to home ownership, the Lee County Association of Realtors is here to assist you every step of the way. We are a team of experienced Realtors ready to help! So, contact us here to get started! Finally, for more tips and guidance, check out our blog.