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Buying a house is a major investment, so it’s important to do thorough research before making a purchase. First, a buyer must understand certain real estate law terms. Two words that come up frequently when house hunting are “deed” and “property title.” Find out what they mean below.

What Is a Deed?

A property deed is a document that transfers ownership of a home from one party to another. It includes a description of the property and identifies the seller and buyer. Both buyer and seller need to sign the deed to legally transfer ownership of a property.

There are three main types of deeds. A general warranty deed provides protection across the lifespan of the property. For instance,  if back taxes are due on the property from a previous owner, the deed still ensures the buyer is the rightful owner.

A special warranty deed only offers protection from the point that new ownership is established. A quitclaim deed transfers rights of ownership without any guarantee that the seller is actually permitted to transfer these rights. This is often used when the property is given as a gift.

What Is a Property Title?

real estate lawThe title proves who the legal owner of the house is. It isn't an actual piece of paper but a concept conveyed through the deed.

The title-holder has certain rights, such as the right of enjoyment, which means they can use the property as they like. Then there is the right of exclusion, which gives them the right to say who can be on the property, and the right of disposition, which is the right to transfer ownership.

It’s a good idea to get title insurance. This protects against unforeseen title defects. If the person selling the property owes taxes on it, for instance, title insurance ensures the new owners aren’t liable. Another example would be if the person who sold you the home didn’t have the right to do so.

 

For knowledgeable legal guidance regarding complex real estate matters, trust Robert A. Schwartz. Practicing since 1982, this attorney and his legal team are dedicated to helping their clients with clear, honest advice and straightforward communication. They approach their clients with compassion and respect, whether it’s a matter of bankruptcy filing or a real estate law issue. Review the law firm’s list of services online. To request a meeting, call (585) 334-4270.

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