What Is A Deed?
The deed is a legal record that confers the ownership of a property in question on another individual or organization.
The property could be a home or land, and the document is signed off by the grantor (seller) and the grantee (buyer). This is to transfer the legal ownership of the property or vehicles to the receiving party.
A deed must be filed with the government to help settle any ownership disputes that may arise or make the owner able to sell, refinance it or stake it as collateral in other financial dealings.
Failure to write, file, or notarize the deed leaves the property’s ownership open to be contested or challenged, and the resulting proof tendered is called an ‘imperfect deed.’
Other documents that confer similar privileges are commissions, academic degrees, professional certifications, licenses to practice, patents, and powers of attorney.
A deed serves as a public record of who owns a home or land, and the register of deeds is usually maintained at the town, county, or state levels, available for the public to verify.
There are various kinds of deeds, including:
Warranty Deed: One used when getting a mortgage and providing protection for the buyer. It could be of two(2) variants:
— A General Warranty Deed, where the buyer is most insured, validates the seller’s claim of ownership and guarantees the property’s freedom from any debts, liens, or encumbrances.
— A Special Warranty Deed, where fewer assurances are certified and covers the state of the property for the seller at the sale and not the situation before.
Bargain and Sale Deed: It only ascertains the seller’s title to the property; it does not protect the buyers from liens or debts as the property’s history can not be determined.
Quitclaim Deed: Here, the seller relinquishes the rights to the property, but it does not guarantee the authenticity of the ownership in the first place, as is commonly used in divorce.
Special Deeds include the deed in lieu of foreclosure, deed of gift, tax deed, executor’s deed, and so on.
A deed usually contains:
- The property description.
- Information on buyers and sellers.
- The seller’s signature.
- Granting and consideration clause.
If a property is to be sold, a deed is transferred from the seller to the buyer to transfer the rights and validate ownership.« Back to Glossary Index