A property deed is a formal, legal description or legal document that transfers the rights of ownership of one person or entity to another. The deed is the official “proof of transfer” for real estate, which can range from a plot of land alone to one with a house or other structure on it.
Deeds are essential documents in real estate transactions. Without proof of a person transferring the rights of ownership to another individual in writing, there would be no official record that could resolve disputes on the real property!
Importance of Deeds and Titles
As earlier established, a deed is an instrument used to transfer property. A property title, on the other hand, gives the legal right of ownership of a property. Titles give property owners the right to use or modify their property as they see fit. They also give them the right to sell their property at any time.
A property deed transfer document must contain certain elements to be enforceable. For example, all terms related to the transfer of property (conveyance) must be included. In addition, the grantor(s) of the property must sign the document if there is more than one owner.
Different types of deeds provide varying levels of protection, depending on what’s being granted or obliged by each party involved. A grantor’s duties are also determined by the type of deed used.
The transfer of property ownership can be complicated. In any transaction where deed transfers, titles, and other estate planning documents are concerned, such as the closing of a home purchase, a qualified real estate attorney should be consulted to get the most favorable outcome.
Common Types of Deeds Available
Warranty deeds guarantee that the title’s status is sound. The seller or grantor of the property is precluded from making any future claims to the property, which means that the buyer of the property (the grantee) has legal recourse against any future claim to it.
With this document, the grantor states that no one else has any claim or lien against the property. A warranty deed is the most common type of deed because it represents the new titleholder’s right to legally purchase, possess, and use the property.
A grant deed is a document used in Texas to convey real estate with implied covenants of title. The grantor swears that they have not sold or transferred title to the property to anyone other than the grantee. They achieve this in a grant deed by using the words “grant” or “convey”.
Furthermore, this language ensures that the property is free of any encumbrances at the time of the legal transfer, meaning that it can be legally transferred.
A quitclaim deed is a document that transfers ownership of a piece of property but does not include any warranty. It’s similar to an “as is” title deed in which the grantor conveys strictly all title, interest, and claim rights they have in the property to the grantee or the new owner.
The grantee receives whatever interest the seller has in the property, with no guarantees. If you’re thinking about a quitclaim deed, it’s important to contact the grantor’s title insurer and a real estate attorney before making any decisions. A quitclaim deed may reduce your title insurance coverage and protection against future claims.
Get a Lawyer’s Expert Help
When executing a deed transfer, it can be difficult to navigate the numerous criteria and regulations. There are a ton of legal forms to fill out and steps to take in every real estate transaction. It can be complicated and overwhelming, but luckily, you can get help from a Texas real estate lawyer.
The Kelly Legal Group specializes in real estate law and can guide you through the process of buying or selling property. Whether you need assistance with moving, drafting, or receiving a deed, you can get excellent legal counsel from the seasoned real estate attorneys at our law firm. Simply, call us at (512) 505-0053. You may also schedule a free consultation by completing our online form.