Understanding The Difference Between a Title and a Deed

Jan 19, 2018

If you have title to a piece of real estate, it means you have the right to use, modify, and access the property. The deed is a legal document that transfers the title from one person to the next, and it is usually recorded at the county courthouse.

However, the deed does NOT guarantee clear title. A clear title means the property is free from encumbrances, liens, or conflict of ownership.

Here is a breakdown of the different types of deeds that can be recorded, and a few of the items required to make the deed legal.

Warranty Deed

This type of deed guarantees or warrants the title is clear. The only items that can be on the title are items that are also noted on the deed. These items are usually easements, restrictions on the property, such as no farm animals, and other rights, regulations, or requirements. The warranty deed offers the most protection.

Quitclaim Deed

The quitclaim offers NO guarantee or warranty regarding any matters affecting the title. This deed does not protect the grantee (buyer) at all, and if a lien or defect is discovered on the title after the recording, the buyer has no legal recourse. If the grantor (seller) has a clear title, the quitclaim deed is as solid as the warranty deed.

Deed of Trust

A deed of trust is used when there is a mortgage or loan on the property. A trustee holds the property for the lender. Once the loan is paid off, the title, free of the loan, will be given to the property owner.

Some Deed Requirements

  • It must be in writing.
  • The grantor (seller) and grantee (buyer) must be identified.
  • The property must be identified.
  • The deed must be signed by all parties. For example: if there are two sellers, both sellers must sign.

If you have more questions about deeds and titles, contact Beaches Title today.