{"id":759,"date":"2019-10-14T06:00:03","date_gmt":"2019-10-14T10:00:03","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=759"},"modified":"2024-04-25T23:20:33","modified_gmt":"2024-04-26T03:20:33","slug":"property-title-deed-whats-the-difference","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/property-title-deed-whats-the-difference\/","title":{"rendered":"Property Title? Deed? What&#8217;s the Difference?"},"content":{"rendered":"\n<div class=\"wp-block-image\"><figure class=\"alignright is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/10\/property-title-deed-whats-the-difference-1024x538.jpg\" alt=\"Image of a legal document in background. Captioned: Property Title? Deed? What's the Difference?\" class=\"wp-image-760\" width=\"512\" height=\"269\" srcset=\"https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/10\/property-title-deed-whats-the-difference-1024x538.jpg 1024w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/10\/property-title-deed-whats-the-difference-300x158.jpg 300w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/10\/property-title-deed-whats-the-difference-768x403.jpg 768w, https:\/\/www.deeds.com\/articles\/wp-content\/uploads\/2019\/10\/property-title-deed-whats-the-difference.jpg 1080w\" sizes=\"auto, (max-width: 512px) 100vw, 512px\" \/><\/figure><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">When you buy\na home, you receive the deed. And you hold title. The deed and title&nbsp;are\ninterrelated yet&nbsp;distinct concepts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Title&nbsp;refers\nto ownership, including&nbsp;the legal right to possess and use a parcel, the\nright to exclude others from using it, and the right to transfer\nyour&nbsp;interest to others.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you do\ntransfer your property to another person, the deed is the vehicle that moves\nyour&nbsp;legal interest in the property&nbsp;to the other party.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p class=\"wp-block-paragraph\">The deed,\nthen, is:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>An integral element in a property conveyance.<\/li><li>An official document that says an owner holds title to the real estate.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Consider the\ndeed as a <em>thing<\/em>,\nand the title as a <em>concept<\/em>:\nthe legal concept that you own&nbsp;the property.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Getting\nDeeper Into the Deeds<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Your deed is\na legal, written proof of ownership,&nbsp;signed by the named buyer and\nseller.&nbsp;It states&nbsp;the address&nbsp;and&nbsp;other identifying\nfeatures of your&nbsp;property.&nbsp;It may incorporate by reference a separate\ncontract of sale that sets out further agreed-upon terms.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The deed\nincludes term of <em>conveyance<\/em>\u2014the\nkey&nbsp;legal language that transfers the property.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The deed\ntakes effect when <em>delivered<\/em>\nfrom the seller and&nbsp;<em>accepted<\/em>&nbsp;by\nthe buyer. In the middle of the two parties is the&nbsp;escrow company, whose\nagent&nbsp;receives the deed, and prepares to convey&nbsp;it to the buyer when\nthe seller has received payment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The sale\ncannot proceed if a&nbsp;title search turns up certain issues. Problems might\nbe&nbsp;liens for unpaid property taxes, construction work,&nbsp;or&nbsp;homeowners&#8217;\nassociation dues. The search might also show covenants, easements, and\npotential&nbsp;conflicting rights to use the property. If the title is clear,\nthe sale can proceed.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After\nclosing, the&nbsp;title or escrow corporation has&nbsp;the deed&nbsp;recorded\nin the county.&nbsp;<a href=\"https:\/\/www.deeds.com\/recorder\/\">Recording a deed<\/a>&nbsp;is\nnot necessary to transfer ownership, but it&#8217;s vital to&nbsp;give&nbsp;the\nproperty transfer its officially understood&nbsp;meaning. You may\nreceive&nbsp;a property, but you&#8217;ll need a&nbsp;recorded a&nbsp;legal deed to\ntransfer it. With the deed recorded, the <em>certificate\nof title<\/em> changes,&nbsp;reflecting&nbsp;changed&nbsp;ownership.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What\nKind of Deed Do You Have?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are\nseveral well-known types&nbsp;of real estate deeds for&nbsp;transferring title\nfrom a seller (grantor) to a buyer (grantee):<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>The general warranty deed: <\/strong>This is standard. It provides the fullest protection. Its recipient receives clear title and full rights to transfer the property. It&#8217;s the seller&#8217;s guarantee against unexpected title defects dating back any time throughout life of the property, including all past ownerships. <\/li><li><strong>The special warranty deed:<\/strong> This is like a general warranty deed, but usually only covers any title defects that could have taken hold during the grantor&#8217;s time of ownership.<\/li><li><strong>The grant deed: <\/strong>This affirms that the grantor has clear title to sell, and that there are no known, undisclosed title defects. It lacks a key assurance of the general warranty deed: the grantor&#8217;s agreement to defend the title against anyone throughout the chain of title. <\/li><li><strong>The quitclaim deed:<\/strong> Often used among family members and divorcing spouses, this vehicle for transferring the title relinquishes any ownership rights the grantor might have held, and no more.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">There are\nothers, but these are commonly used deeds in real estate transactions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What\nKind of&nbsp;Title Do You Have?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Title can be\nheld by a&nbsp;sole owner.&nbsp;When there are multiple&nbsp;owners,\neach&nbsp;title holder keeps a legally valid copy of the title. Co-owners may\nvest as:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Joint tenants with rights of survivorship: <\/strong>Co-owners have equal shares, and when one of them dies, the interest passes to the surviving co-owner\u2014often a spouse. If there are multiple surviving co-owners, they&#8217;ll acquire equal interests in the property.<\/li><li><strong>Tenants in common:<\/strong> These individuals (and possibly businesses) hold a specific percentage of ownership on the title. Percentages can be unequal, and they can be bequeathed in a will. Spouses can hold individual interests this way, and bequeath their interests to third parties.\u00a0 <\/li><li><strong>Tenants by entirety: <\/strong>In states that allow it, couples can use this form of title vesting so that each enjoys full ownership of the property. Depending on state law, creditors may not be able to place a lien on the property without the consent of the co-owner who is not the debtor. Each co-owner needs the other co-owner&#8217;s consent to sell their interest. <\/li><li><strong>Community property:<\/strong> In community property states, a couple owns real estate in equal shares and may transfer their interest or leave it in a will. Otherwise, the surviving partner receives it. Alternatively, community property can come with survivorship rights, if allowed by state law, and skip probate. <\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A title may\nalso be in a corporate&nbsp;name, or held&nbsp;in a trust. Families vest title\nin trusts&nbsp;to offset property tax liability, or&nbsp;have the\nproperty&nbsp;managed for specific goals. An&nbsp;administrator holds a copy of\nthe title on behalf of the&nbsp;corporation or trust.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Why\nDo You Have a&nbsp;Certificate&nbsp;of Title?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When you\nacquire a piece of real estate, you receive not only the deed, but also a\ncertificate of title in your name. This document&nbsp;attests to the title\ncompany&#8217;s opinion that your&nbsp;title is clear, based on available public\nrecords.&nbsp;This public document supports your&nbsp;property&nbsp;interests, as\na&nbsp;<em>bona fide purchaser,<\/em>&nbsp;against&nbsp;future\nclaims for unresolved debts.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">What if there <em>are<\/em> future claims? When you buy property, you&#8217;ll have to buy\u00a0<a href=\"https:\/\/www.nerdwallet.com\/blog\/mortgages\/what-is-title-insurance-do-you-need-it\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\" (opens in a new tab)\">title insurance<\/a>\u00a0to\u00a0protect\u00a0your lender from\u00a0potential\u00a0surprises\u2014an unrecorded mortgage, a mistake in the recorded information, an heir who turns up out of the blue,\u00a0or fraudulent activity. A separate owner&#8217;s policy can protect you, the buyer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The\nDifference Between Deed&nbsp;and Title: Boiling It Down<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Deeds\nand&nbsp;titles are key instruments in real property conveyances. Title\nrepresents&nbsp;ownership&nbsp;rights (&#8220;interest&#8221;)&nbsp;in\na&nbsp;property. An owner may have a&nbsp;full or partial interest.\n\nA\nproperty&#8217;s title moves from one owner to the next by a legally valid deed.\nDeeds&nbsp;provide varied assurances and&nbsp;protections to the buyer or\ngrantee, depending&nbsp;on the kind of deed involved in the transaction.&nbsp;\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When you buy a home, you receive the deed. And you hold title. The deed and title&nbsp;are interrelated yet&nbsp;distinct concepts. Title&nbsp;refers to ownership, including&nbsp;the legal right to possess and use a parcel, the right to exclude others from using it, and the right to transfer your&nbsp;interest to others. If you do transfer your property to [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[105],"tags":[],"class_list":["post-759","post","type-post","status-publish","format-standard","hentry","category-title"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Property Title? Deed? What&#039;s the Difference? - Deeds.com<\/title>\n<meta name=\"description\" content=\"When you buy a home, you receive the deed. And you hold title. 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