In this article:
- What Is a Deed?
- What Is a Title?
- Do You Need a House Title and Deed?
The deed and title of a home are closely related, but have important differences. When you own a home, the deed is the physical document that proves ownership. The title is the concept of legal ownership that the deed grants you.
You can think of the deed as the document that transfers, or passes on, the title or the right to ownership. When you buy a home, you need both. Below are the important elements to know about how deeds and titles work.
What Is a Deed?
A deed is a tangible document signed by the seller, or grantor, of a property. It confirms transfer of ownership from one party to another if, for example, you're buying a home. It's the seller's responsibility to get the deed to the buyer, either at or after closing. The deed will also be filed at the local courthouse or county assessor's office, depending on where you live.
Often, a real estate attorney will draft the deed and the seller will sign it and get it notarized. A deed includes a legal description of the property and property lines, the full names and addresses of the grantor and grantee and specific language that officially transfers ownership.
How to Get a House Deed
If you're the new owner of a home or property, you will receive a copy of the deed during or just after closing. But you may also want to get an additional or replacement copy of your deed for other reasons long after you've purchased a home.
To request a copy of your deed, follow these steps:
- Identify the government entity that manages property records in your county. This may be the courthouse's land records office, the county department of records, the county recorder's office or another agency. A good place to start is to visit your county's official website and search "services," "citizen services" or the like.
- You may need to conduct an initial online search of county records to find your deed's document number, then request it in person. Some records divisions allow you to access your deed on your own online, for a fee. The process will vary by jurisdiction, and steps should be listed online.
- You'll typically pay a nominal fee to get a copy of your deed. Check to see which types of payment are accepted, or carry an extra fee, before picking up your deed.
What Is a Title?
A title is a claim to several rights related to property, including the right to own, control and use that property. The title incorporates all prior transfers and usage of the property or land. So when you take on ownership, it's important to ensure that there are no outstanding title issues, such as a mistake in the deed or a previous owner's unpaid taxes on the property. Otherwise, handling those issues as the new property owner could be expensive and time-consuming.
What Is a Title Search?
To check the history of your title, a title company or attorney will search all public records relating to it. A title search will identify if there are any concerns with ownership, including making sure the seller truly has the authority to transfer the title or if there are other claims to it. They'll also check if there are any judgments or liens against the property as a result of a previous owner's unpaid debts.
What Is Title Insurance?
Owner's title insurance is a policy that protects you from the fallout of past title issues you didn't know about when you bought the property and that didn't come up in a title search.
For example, say a previous owner's heir suddenly makes a claim to the home after you've bought it, and that circ*mstance is covered in your policy. Your title insurance company will represent you in court and also cover the fees you're required to pay to settle the matter, up to your coverage amount.
If you borrow money from a bank to buy the home, you'll likely also need to pay for a lender's title insurance policy to protect the mortgage lender from title issues related to the loan. In fact, when you buy a house with a mortgage, the lender holds a lien against the property until the loan is paid off. That shows that the lender is using the property as collateral in case you don't make payments.
Do You Need a House Title and Deed?
To own a home, you need both the house's deed and title. But since the two are so interrelated, this will happen naturally during the process of buying a home. When you receive the deed in your name, legally transferring ownership of the home, you will also take on the title.
Even though a mortgage lender will hold a lien against your home while you're paying off the loan, you are considered the home's owner as long as your name is on the deed. The lender simply has temporary control of the title while you're making loan payments, and you receive that control back once you pay the mortgage in full.
The Bottom Line
The terms "deed" and "title" can sometimes be used interchangeably, and while they both have to do with home ownership, they refer to different concepts. The deed is the document that transfers title. When your name is on a home's deed, you also take on title, or the abstract idea that you own the property and have certain rights to it.
Allow me to dive into the intricacies of the concepts discussed in the article, demonstrating my expertise on the topic.
Deed: A deed is a tangible legal document that serves as proof of the transfer of ownership from one party to another, typically from a seller (grantor) to a buyer (grantee) in the context of real estate. This document includes crucial information such as a legal description of the property, property lines, full names, and addresses of both parties involved, along with specific language officially transferring ownership. The responsibility for providing the deed usually lies with the seller, and it is commonly filed at the local courthouse or county assessor's office.
How to Get a House Deed: As outlined in the article, obtaining a copy of your deed involves identifying the government entity managing property records in your county, such as the courthouse's land records office or the county recorder's office. The process may include an online search for the deed's document number and a subsequent request, either in person or online, often accompanied by a nominal fee.
Title: A title represents a legal claim to various rights associated with a property, encompassing ownership, control, and usage. It consolidates all prior transfers and historical usage of the property. Ensuring a clear title is crucial when acquiring property, as any outstanding issues, like errors in the deed or unpaid taxes by previous owners, may lead to complications for the new owner.
Title Search: To verify the history of a title, a title company or attorney conducts a title search by scrutinizing all relevant public records. This process helps identify potential concerns with ownership, ensuring that the seller has the authority to transfer the title and revealing any other claims or issues tied to the property.
Title Insurance: Title insurance is a protective policy that shields property owners from unforeseen title issues not discovered during the title search. This can include scenarios where a previous owner's heir asserts a claim to the property after the sale. Owner's title insurance covers legal representation and associated fees in such cases. Additionally, a lender's title insurance policy may be required when obtaining a mortgage to protect the lender from title-related issues associated with the loan.
Ownership and the Relationship Between Deed and Title: To own a home, one needs both the deed and title. The deed serves as the document officially transferring ownership, while the title represents the abstract concept of legal ownership and associated rights. Even if a mortgage lender holds a lien on the property during the loan repayment period, the individual whose name is on the deed is considered the home's owner. The lender's control over the title is temporary, reverting to the homeowner once the mortgage is fully paid.
Conclusion: In summary, while the terms "deed" and "title" are often used interchangeably, they refer to distinct concepts in the realm of home ownership. The deed is the tangible document facilitating the transfer of title, while the title is the legal abstraction signifying ownership and related rights to the property. The understanding of these concepts is crucial for anyone involved in real estate transactions to navigate the complexities of property ownership successfully.
