{"id":5849,"date":"2024-07-24T21:57:54","date_gmt":"2024-07-25T01:57:54","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=5849"},"modified":"2024-07-24T21:57:57","modified_gmt":"2024-07-25T01:57:57","slug":"whether-youre-selling-or-buying-how-the-deed-works","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/whether-youre-selling-or-buying-how-the-deed-works\/","title":{"rendered":"Whether You\u2019re Selling or Buying: How the Deed Works"},"content":{"rendered":"\n<figure class=\"wp-block-image aligncenter size-full is-style-rounded is-style-rounded--1\"><img loading=\"lazy\" decoding=\"async\" width=\"1428\" height=\"752\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/07\/how-the-real-estate-deed-works.webp\" alt=\"\" class=\"wp-image-5850\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/07\/how-the-real-estate-deed-works.webp 1428w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/07\/how-the-real-estate-deed-works-300x158.webp 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/07\/how-the-real-estate-deed-works-1024x539.webp 1024w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/07\/how-the-real-estate-deed-works-768x404.webp 768w\" sizes=\"auto, (max-width: 1428px) 100vw, 1428px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Whether you\u2019re about to receive the deed to your first home, or could use a refresher on all things deed-related, we\u2019ve got you covered.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A deed is a legal document (also called a legal instrument) that serves to transfer a real estate title from a current owner to a new owner. That is, <a href=\"https:\/\/www.deeds.com\/articles\/property-title-deed-whats-the-difference\/\">the deed is not the title itself<\/a>. Rather, it represents the latest transfer in the chain of title. In other words, it\u2019s the physical document that shows who transferred legal ownership rights to whom, and when. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When buying a home from someone you don\u2019t otherwise know, a <em>warranty deed<\/em> could be the instrument of choice. In other cases, homeownership is transferred among related parties. They would typically (but not always) choose a <em>quitclaim deed<\/em> for bringing an additional owner on or off the home.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\">And the Deed Says\u2026<\/h2>\n\n\n\n<figure class=\"wp-block-image alignright size-full is-style-rounded is-style-rounded--2\"><img loading=\"lazy\" decoding=\"async\" width=\"838\" height=\"614\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/07\/and-the-deed-says.webp\" alt=\"\" class=\"wp-image-5851\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/07\/and-the-deed-says.webp 838w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/07\/and-the-deed-says-300x220.webp 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2024\/07\/and-the-deed-says-768x563.webp 768w\" sizes=\"auto, (max-width: 838px) 100vw, 838px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A deed conveys (transfers) ownership of an identified piece of real estate from a <em>grantor <\/em>(the person who transfers the home) to a <em>grantee<\/em> (recipient). A completed deed form should be signed, notarized, and filed with the county recorder of deeds. State law dictates what a deed must say. But as a general matter: &nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The deed must be in writing.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The grantor and grantee are identified on the deed. The grantee\u2019s complete signature appears.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The grantor signed it before a notary. \u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The deed being created includes a <a href=\"https:\/\/www.deeds.com\/articles\/real-estate-legal-descriptions-for-deeds\/\"><em>legal description<\/em><\/a> that perfectly matches the description on the current deed.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <em>granting clause<\/em> transfers ownership to the grantee.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The <em>consideration clause<\/em> says the grantor received value for the property, with the purchase price specified. \u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The deed must be delivered to its grantee.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The grantee must accept the deed transfer.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Those are the basics for a binding deed. If you\u2019re wondering why someone might <a href=\"https:\/\/www.deeds.com\/articles\/refusing-to-accept-a-deed\/\">refuse a deed<\/a>, it\u2019s often because the home would be more trouble than it\u2019s worth to the intended recipient. The intended recipient might not have the personal time and resources to deal with a large asset. Or the home might have liabilities that would be risky or costly to accept.<\/p>\n\n\n\n<p class=\"has-accent-5-background-color has-background wp-block-paragraph\" style=\"padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\"><em><strong>When you buy (or acquire a property interest in) a home, you get a deed. Need to find it? Here\u2019s how to <\/strong><\/em><a href=\"https:\/\/www.deeds.com\/copy-of-your-deed\/\"><strong><em>get a copy of your deed<\/em><\/strong><\/a><em><strong>.<\/strong><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Speaking of Risks\u2026<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Various types of real estate deeds offer more protection and less risk to a particular party:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>Warranty deeds<\/em> are common in most states for home sales. They assure the buyer of a free and clear title. This is least risky for the recipient \u2014 who can tell that any liens, easements, and restrictions on the title are only those already disclosed by the deed.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>Special warranty deeds<\/em> place more risk on a recipient. These deeds only assure their recipients that the property wasn\u2019t burdened with claims during <em>the seller\u2019s<\/em> time as an owner. Liens, easements, and other claims could still exist from the time before that. Homes that go into mortgage default situations are typically sold by banks or other non-occupant owners with special warranty deeds.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>Quitclaim deeds<\/em> don\u2019t offer any assurances at all. They only transfer the ownership rights that the grantor had \u2014 if the grantor actually had any. They may convey the full title, and tend to work efficiently among related parties who have no questions about the home\u2019s legal status. They can also be used to clarify ambiguous ownership status. That is, a person can quitclaim an interest to make it crystal-clear that they hold no claim on the deed.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Deeds allow you to transfer a property title to a buyer, a friend or relative, or an organization. For example, you might decide to downsize but deed the family home to a younger relation (though for tax purposes, many homeowners bequeath their homes through wills instead). Deeds also allow you to <a href=\"https:\/\/www.deeds.com\/articles\/can-i-quitclaim-my-house-into-a-living-trust\/\">quitclaim a home into a trust<\/a> on behalf of a person or family.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A deed can transfer title in a regular sale. If instead you give your home away, a gift deed shows it was conveyed to its recipient unconditionally, for no money \u2014 whether that be to a person or perhaps a <a href=\"https:\/\/www.deeds.com\/articles\/if-why-and-how-to-donate-real-estate-to-a-cause\/\">charity<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you bequeath your home, the beneficiary receives an executor\u2019s deed or and administrator\u2019s deed out of the <a href=\"https:\/\/www.deeds.com\/articles\/best-way-to-inherit-a-home-in-probate-executors-deed-administrators-deed-or-quitclaim\/\">probate court<\/a>. In some states, you can bypass probate and bequeath your home using a <a href=\"https:\/\/www.deeds.com\/transfer-on-death-deed\/\"><em>transfer on death deed<\/em><\/a><em>.<\/em><\/p>\n\n\n\n<p class=\"has-accent-5-background-color has-background wp-block-paragraph\" style=\"padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\"><em><strong>Can anyone transfer or receive a deed? Learn about <\/strong><\/em><a href=\"https:\/\/www.deeds.com\/articles\/legal-incompetence-and-deed-transfers\/\"><strong><em>legal competence and deeds<\/em><\/strong><\/a><em><strong> with Deeds.com.<\/strong><\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Now, About Condos\u2026<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here are the special considerations for the deed wherever a homeowners\u2019 association or condo association is involved.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The relative affordability of the condo market provides something of an opportunity for hopeful buyers, and for fans of downsizing and minimalism. But what kind of deed does a condo come with? Buyers need to understand how the title works when they opt into a homeowners\u2019 association (HOA).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First, yes: the buyer of a condo unit does get a deed to real estate \u2014 a deed which can later be sold. At the same time, the association holds a master deed on behalf of the collective of unit owners. The master deed for a condo development must follow state law. It\u2019s recorded with the county by the property developer, together with the Covenants, Conditions &amp; Restrictions (CC&amp;Rs), maps, etc. &nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In general, it\u2019s the association that must manage common elements (areas used by the community of unit owners). The unit owner handles everything within the four walls of the condo. Additionally, many properties allow for each unit owner to individually enjoy and tend a patio\/garden area.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Look to the condo property\u2019s Covenants, Conditions &amp; Restrictions (CC&amp;Rs) to learn the breakdown of rights and responsibilities for a specific development. Typical restrictions on ownership deal with aesthetics, pet limits, and caps on rentals.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">When It\u2019s Time to Deed a Home\u2026<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Transferring real estate can be a complicated affair. To keep things as simple as they can be, it\u2019s important to know how the deed works.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Not sure whether you\u2019ll need to update your deed? Questions about deeds, trusts and estate planning? Or any other deed-specific questions? Answer them with legal expertise. Contact an experienced attorney in your state.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A tax pro knows a good deal of pertinent information too. When you buy, sell, or otherwise transfer a deed, you\u2019ll need to be prepared for transfer tax in many cases, and potentially capital gains taxes. You\u2019ll also want to learn about the tax breaks a deed holder can claim on their mortgage interest.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But right now, we want to be sure you have a refresher on deed basics. Thank you for spending some of your valuable time today with <em>Deeds.com.<\/em><\/p>\n\n\n\n<div class=\"wp-block-group has-accent-5-background-color has-background has-small-font-size is-layout-flow wp-block-group-is-layout-flow\" style=\"padding-top:var(--wp--preset--spacing--10);padding-right:var(--wp--preset--spacing--10);padding-bottom:var(--wp--preset--spacing--10);padding-left:var(--wp--preset--spacing--10)\">\n<p class=\"wp-block-paragraph\"><strong>Supporting References<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Mia Taylor for <em>Bankrate.com<\/em>: <a href=\"https:\/\/www.bankrate.com\/real-estate\/documents-needed-to-sell-house\/\" target=\"_blank\" rel=\"noreferrer noopener\">Documents Needed to Sell a House<\/a> (Feb. 29, 2024).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Carla Ayers via <em>RocketHomes.com<\/em>: <a href=\"https:\/\/www.rockethomes.com\/blog\/home-buying\/property-deed\" target=\"_blank\" rel=\"noreferrer noopener\">The Home Buyer\u2019s Guide To House Deeds<\/a> (updated Feb. 2, 2024). Rocket Homes\u2120 is a registered trademark and part of Rocket Homes Real Estate LLC.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Deeds.com<\/em>: <a href=\"https:\/\/www.deeds.com\/articles\/with-home-prices-soaring-condos-are-a-relative-bargain-heres-how-their-deeds-work\/\">With Home Prices Soaring, Condos Are a Relative Bargain. Here\u2019s How Their Deeds Work<\/a> (Jun. 23, 2021).&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And as linked.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>More on topics: <\/strong><a href=\"https:\/\/www.deeds.com\/articles\/deed-theft-should-not-exist\/\">Deed theft<\/a><strong>, <\/strong><a href=\"https:\/\/www.deeds.com\/articles\/using-a-quitclaim-deed-top-5-reasons\/\">Reasons for quitclaiming<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Photo credits: <a href=\"https:\/\/commons.m.wikimedia.org\/wiki\/File:Couples_in_Real_Estate_Agent%27s_Office.jpg\" target=\"_blank\" rel=\"noreferrer noopener\">Mark Moz via Wikimedia Commons<\/a> (licensed under <a href=\"https:\/\/creativecommons.org\/licenses\/by\/2.0\/deed.en\" target=\"_blank\" rel=\"noreferrer noopener\">CC BY-SA 2.0 Generic<\/a>), and <a href=\"https:\/\/commons.wikimedia.org\/wiki\/File:Sign_for_Middlesex_Superior_Court,_Registry_of_Deeds;_Lowell,_MA;_2011-09-03.JPG\" target=\"_blank\" rel=\"noreferrer noopener\">Emw via Wikimedia Commons<\/a> (licensed under <a href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/deed.en\" target=\"_blank\" rel=\"noreferrer noopener\">CC BY-SA 4 .0<\/a> Int\u2019l).<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Whether you\u2019re about to receive the deed to your first home, or could use a refresher on all things deed-related, we\u2019ve got you covered. A deed is a legal document (also called a legal instrument) that serves to transfer a real estate title from a current owner to a new owner. That is, the deed [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":5850,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[131],"tags":[1625,1624,1091,1591,324,445,189,735,361,757,179,1622,380,1623],"class_list":["post-5849","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-ccrs","tag-condominium-deeds","tag-deeds","tag-hoa","tag-home-buying","tag-home-selling","tag-homeownership","tag-legal-documents","tag-property-transfer","tag-quitclaim-deeds","tag-real-estate","tag-special-warranty-deeds","tag-title-transfer","tag-warranty-deeds"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Whether You\u2019re Selling or Buying: How the Deed Works - Deeds.com<\/title>\n<meta name=\"description\" content=\"Learn how real estate deeds work, including warranty, special warranty, and quitclaim deeds. 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