A real estate deed is the official paper stating that a property is transferred to the buyer. Generally, it states that the grantors or property owners agree to legally transfer the property to the grantee or buyer. Likewise, the full information about the estate being sold is detailed on the deed.
The deed is then signed by both former and new homeowners. Nevertheless, a deed does not take effect unless it is in the position of the new property owner. The exemption to this is if both parties have agreed on a specific date of effectivity.
Difference Between Deed and Title
There is a common misconception between deeds and titles. The deed states that the ownership of the estate is legally transferred to the buyer and proves their ownership of said property. Meanwhile, the title is the document that states their right to the property and their limitation (full or partial interest). In layman’s terms, the title is the certificate the says you own the property.
Types of Deeds
Most real estate transfers fall under private deeds, but there are other deeds as well that buyers and sellers would encounter. The quitclaim deed that waives all liabilities of the grantor. Any problem that would incur after the transfer can’t be held against them.
On the other hand, the general warranty deed states that any issues with the title and other ownership-related problems are to be cleared by the grantor. Moreover, the special warranty deed exempts grantors of issues that arises after transfer.