Q:

What is the difference between a property deed and title?

A:

Quick Answer

Title is a legal term that means ownership while a deed is a legal document that serves to transfer the title of a piece of property from one party to another. The terms are used most often in the field of real estate, but deeds are also used in other circumstances.

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What is the difference between a property deed and title?
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Full Answer

"Title" in real estate refers to the legal concept of ownership. A title may be full or partial, meaning that other parties also have rights to the property. Possessing the title to a property implies several rights, including the right to have access to the property, to use it and to transfer that title to another party in whole or in part.

The deed, as the legal instrument that transfers the title from one party to another and under the Statue of Frauds, must be a written document signed by both parties. The seller is known as the grantor and the buyer as the grantee. In most states, the deed must be registered with a courthouse or assessor's office to be fully binding but non-registration does not invalidate the actual sale. It only produces an irregularity in the sale's documentation, referred to as an "imperfect deed."

Deeds are also used in specialized circumstances, such as a tax deed that is issued when property is sold to pay unpaid taxes, or an executor's deed, issued by the executor of an estate when selling the estate's assets.

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Related Questions

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    What is a "gift of deed"?

    A:

    A gift of deed is a legally binding contract that transfers the ownership of a real estate property from one person to another, according to the Real Estate Lawyers. The donor, the person that gives the gift of deed, hires a real estate attorney to draft, review and file the necessary legal paperwork required to transfer the property to the donee, the person who receives the gift.

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    What is a fee simple title holder?

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    A fee simple title holder is someone who owns a piece of property and has absolute ownership and rights to that property. This ownership includes the land and any improvements on the land, and no one has the right to take away the fee simple title holder's property, states Zillow.

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    What is a special warranty deed?

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    A special warranty deed is used to convey a real estate title to the buyer and grants a warranty against the seller's actions during the seller's ownership only. It has fewer protections for the buyer compared to a general warranty deed, which warranties against defects through all ownerships.

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  • Q:

    When do you use a deed in lieu of foreclosure?

    A:

    A deed in lieu of foreclosure transfers the title of a house from the homeowner to the bank collecting on the mortgage. This is done when the homeowner defaults on the home loan and wants to avoid foreclosure.

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