Do you think title and deed have any difference? Let’s explore together.
The world of real estate is full of jargons. The jargon which are unique to the industry. When I first stepped into the world of real estate, I spend most of my time in Googling terms. Even I asked my couple of friends to further elaborate on real estate terms. I wasn’t surprised to learn a common confusion of the title and deed. The two terms are very closely interlinked, which produces a lot of confusion in the description and also how they differ. Understanding the real estate jargons can assist me in better navigating the home buying process.
WHAT DO I MEAN BY A TITLE?
A title is a legal term that refers to the legal ownership of anything. Titles are applied to all property items of value. For instance, such as a car or a boat. They are held by individuals or by groups of people. In the real estate world, a title applies to the ownership of a home or property. Holding a title on a home provides a bundle of legal rights. The rights of:
- Possession
- Control
- Exclusion
- Enjoyment
- Disposition
SIGNIFICANCE OF A TITLE
I have also the legal right to resell the home. However, the owners with title ownership are unable to do so unless they got a “clear title”. This means that I have to prove that my title is clear of liens, judgments, bankruptcies, unpaid taxes, or any other faults. First-time buyers and their lenders don’t want to take on my old debts that use the property as collateral. This is why it’s substantial to perform a title search before moving forward in closing on a house.
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WHAT IS A DEED REFERS IN REAL ESTATE?
Where a title is the legal confirmation of ownership, a deed is the actual legal document that transfers the title of a property from one individual to another. The person selling the home (the seller who now serves as a grantor) will sign the deed to transfer property rights to the buyer (the buyer who now serves as a grantee). The deed contains a detailed description of the property, as well as indicates the grantor and grantee. Both parties have to sign the document to make the title official.
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WHAT IS THE DIFFERENCE BETWEEN A TITLE AND A DEED?
A deed is a legal document stating that the deed holder has legal ownership of a piece of property A property title is simply the concept of the homeowner’s theoretical rights to a piece of real property and not a physical document. The deed provides a public record of the property owner’s title.
The rights given by a title can differ depending on the deed. A clear title grants absolute rights of ownership to the titleholder, but depending on whether a title search has been undertaken, and how the title is outlined in the title abstract in the deed, the validity of the title represented in the deed can be contested.
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