{"id":6171,"date":"2024-12-09T08:14:55","date_gmt":"2024-12-09T13:14:55","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=6171"},"modified":"2024-12-09T08:15:47","modified_gmt":"2024-12-09T13:15:47","slug":"biggest-deed-slip-ups-and-how-not-to-make-them","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/biggest-deed-slip-ups-and-how-not-to-make-them\/","title":{"rendered":"Biggest Deed Slip-Ups (and How Not to Make Them)"},"content":{"rendered":"\n
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Mistakes happen. When they happen to a deed, they can go unnoticed for a long time \u2014 sometimes leaving a clouded title<\/a> through a chain of owners.<\/p>\n\n\n\n

But at some point, a deed mistake catches up to an owner, buyer, or heir.<\/p>\n\n\n\n

So, let\u2019s take a look at 8 common homeowner deed mistakes, and how to avoid them.<\/p>\n\n\n\n\n\n\n\n

Whoops #1. Not Reading the Deed.<\/h2>\n\n\n\n

After closing, look for your new deed<\/a> and review it. Your deed is proof of ownership. It also shows how your ownership will go to someone else after your life. More on that in a bit.<\/p>\n\n\n\n

Look for the typos that can creep into property deeds during transfers. Look for small details out of whack. Legal names could be missing; maybe someone\u2019s nickname<\/a> appears instead. Addresses can be off by one or two numbers or letters. Wrong dates can be entered into the system. And so forth.<\/p>\n\n\n\n

Clerical bloopers can slip through title searches. If you find something like this, it\u2019s usually a good move to file a corrective deed.<\/p>\n\n\n\n

Whoops #2. Not Fixing an Incorrect Legal Description.<\/h2>\n\n\n\n

All property deeds include a legal description of the boundaries of a property<\/a>. This description normally gets copied over whenever one owner transfers the deed to the next. Typos sometimes creep in.<\/p>\n\n\n\n

Changes in boundaries also throw off the accuracy of deeds. Problems can go unnoticed for some time from owner to owner.<\/p>\n\n\n\n

When you become an owner of property, get familiar with your deed. Do its written details match what\u2019s in the inspector\u2019s and appraiser\u2019s reports, and listing information? Discrepancies could highlight a mistake in copying the legal description.<\/p>\n\n\n\n

For harmless errors such as misspelled or incomplete names, the solution could be a corrective deed or a <\/strong><\/em>quitclaim deed<\/em><\/strong><\/a>.<\/strong><\/em><\/p>\n\n\n\n

Whoops #3. Not Recording the Deed.<\/h2>\n\n\n\n

What is recording a deed? Recording a deed involves submitting it for the public record with the county or city deed recorder\u2019s office.<\/p>\n\n\n\n

Is the deed valid if it\u2019s transferred but not recorded? Yes, but recording is important to give the public notice of the ownership of the property. Otherwise, the owner named on the public record could actually be someone who\u2019s already handed the deed over to an unnamed party.  <\/p>\n\n\n\n

So, when a deed is left unrecorded, expect confusion down the road. Worst-case scenario? Someone could sell the home with a different deed and record that later deed. Then two parties think they own the same property. It happens.<\/p>\n\n\n\n

When you acquire a deed, be sure it\u2019s complete and error-free \u2014 and recorded, too.<\/p>\n\n\n\n

Our <\/em>deed forms<\/em><\/a> are designed and regularly updated to meet legal requirements to transfer the property in your state and county.<\/em> <\/strong><\/p>\n\n\n\n

Whoops #4. Losing Track of Heirs to the Title.<\/h2>\n\n\n\n

Now and then when a property owner dies, an heir gets passed over. What if such an heir turns up one day (a blast from the past!) claiming a property interest?<\/p>\n\n\n\n

With developments in heir-tracing technology, we could be seeing more such claims. Some surprise claims have legs. It all depends on how state law interacts with the facts of the case. For the innocent deed holder, that can lead to a trip to the courthouse for a quiet title action<\/em><\/a>.<\/p>\n\n\n\n

Are you becoming a deed holder? Consider buying owner\u2019s title insurance. <\/em>For a one-time premium at closing time, it offers protection from certain claims that have fallen through the cracks. (An owner\u2019s title insurance policy, which is optional, is not<\/em> the title policy that covers a mortgage lender.)<\/p>\n\n\n\n

Is title insurance a junk fee<\/em><\/strong><\/a>? Learn more and decide for yourself.<\/strong><\/em><\/p>\n\n\n\n

Whoops #5. Impersonations and Forgeries<\/h2>\n\n\n\n

A notary<\/em><\/a> witnesses signatures going onto legal documents. But unless the state law says otherwise, notaries don\u2019t verify a signer\u2019s ID. Deed forgery can occur.<\/p>\n\n\n\n

A deed holder wouldn\u2019t necessarily have reason to know a signature was faked. Nor, for that matter, would it be obvious that someone in the title history transferred the deed under pressure, or without full understanding. Impersonations and concocted paperwork sometimes even find their way to a closing table without being discovered.<\/p>\n\n\n\n

This one is tricky. How would you notice a forgery in a past deed in the chain? Here again, selecting a robust owner\u2019s title policy<\/a> may be your best bet.<\/p>\n\n\n\n

Whoops #6 Adding Names Merely to Avoid Probate<\/h2>\n\n\n\n
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Many people add others\u2019 names to their deeds to keep the home out of probate. Some bring on adult children, giving them vested rights<\/a>.  <\/p>\n\n\n\n

When you add someone else\u2019s name to your deed, go over the possible consequences. Like these:<\/p>\n\n\n\n