The property deed is an essential document in transferring property from a buyer to a seller. While your lawyer can help you manage the sale, that sale can’t move forward without that document. This overview explains more about property deeds and the role they play in selling the real estate you own.
What You Should Know About Deeds Before Contacting a Real Estate Lawyer
What is a Property Deed?
A deed is different from the property title in that the deed is the document that allows you to transfer ownership of the property. A title, on the other hand, merely establishes your ownership of that property. Realtor explains that the title is the proof that you have the right to enjoy the property, while the deed grants other rights that are associated with the buying and selling of property. Although a lawyer can assist in the selling of the property, both the buyer and seller must sign the deed in order for the transaction to be formalized.
What Are the 3 Different Types of Deeds?
In this type of deed, property ownership is transferred under the promise that the property hasn’t already been transferred to another individual, or entity.
Here, the ownership of the property is transferred in good faith. The quitclaim deed is differentiated from a grant deed in that the seller, or grantee, may not be fully aware of their rights to the property.
General Warranty Deed
The grantee is transferring ownership of the property and pledging that the property is free of other claims. Since the buyer will be compensated if a claim against the property does arise, the seller will likely ask their lawyer to conduct a title history search before offering a general warranty deed.
How Does a Deed Affect the Sale of Real Estate?
A deed must meet certain requirements set out in real estate law in order to be considered valid. It must be a written document, signed by both the seller and buyer, and must be notarized. In witnessing the signing of the deed, the public notary must verify the identity of each party and determine that they’re each competent to sign a legally binding document.
Once this step is complete, the buyer will have to file the deed with the county clerk’s office. This will finalize the transaction by establishing the buyer as the new owner of the property. The transferred deed will become publicly searchable, allowing anyone to verify the new owner of the property.
This is just one part of a complex real estate transaction that often requires the expertise of a lawyer. Located in Sanford County, NC, Stephenson & Stephenson, PA is a smaller law office that has been offering real estate legal services since 1984. They will be happy to answer any questions you may have about real estate, estate planning, and family law. You can contact them online, or by calling (919) 774-6182.