Answers to commonly asked questions concerning deeds, including quitclaim deeds, grant deeds, warranty deeds, and trust deeds.
Table of Contents
Questions
How can you acquire property as tenants in common or joint tenants? What’s the distinction?
Is it necessary to notarize, witness, or submit a deed?
Is a trust deed or a deed contract a genuine deed?
What exactly is a deed of transfer on death?
What exactly is a deed? What form of deed should I use—grant, quitclaim, or warranty?
How can you acquire property as tenants in common or joint tenants? What’s the distinction?
If you are purchasing property with one or more other individuals, you must decide how you want to acquire title. It’s a big choice since there are big distinctions between tenancy in common and joint tenancy.
Property held as “joint tenants” allows two or more persons to share ownership of real estate. Except in a few jurisdictions, joint tenants must have equal interests in the property; for example, if you purchase a house with two other people, you each own one-third of it.
When one of the joint tenants dies, the remaining owners inherit the dead owner’s stake in the property. For example, if a parent and kid jointly own a home and the father dies, the youngster instantly becomes full owner. Because of this right of survivorship, no will is necessary to transfer the property; instead, the property is transferred straight to the surviving joint tenants without the time and expense of probate.
Holding property as “tenants in common” is another option for two or more persons to jointly own real estate. Tenants in common, unlike joint tenants, may possess property in unequal portions. And, unlike the surviving co-owners, each of you may leave your stake to beneficiaries of your choice. Unless they agree differently in writing, two unmarried persons are deemed to possess property as tenants in common in various jurisdictions.
Married spouses may also acquire title as “tenants by the entirety,” “community property,” or “community property with right of survivorship” depending on where the property is located. Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin are community property states. (In Alaska, couples may enter into an agreement that makes particular assets common property.)
You do not require a separate document to take property under joint tenancy, tenancy by the entirety, or tenancy in common. Simply state how the new owners will take ownership in whichever deed you choose.
Is it necessary to notarize, witness, or submit a deed?
A deed must always be notarized and recorded in public; it may also be witnessed.
The individual signing the deed (the person transferring the property) should take it to a notary public, who will sign and stamp it after seeing the person sign it. A notary public has confirmed that the signature on the deed is authentic by notarizing it.
Deeds in certain states must also be witnessed by witnesses who are present when the owner signs the deed.
The deed should be “recorded” (filed) with the land records office in the county where the property is located by the person who signed it. In various states, this office is referred to as the County Recorder’s Office, Land Registry Office, or Register of Deeds. In most counties, it is located in the courthouse.
It is straightforward to record a deed: Simply take the original, signed deed to the property records office. The clerk will take the deed, stamp it with the date and certain numbers, create a duplicate, and return to you the original. The numbers are often book and page numbers that indicate where the deed may be located in the county’s filing system. For recording, there will be a nominal cost per page.
Is a trust deed or a deed contract a genuine deed?
A trust deed (also known as a deed of trust) differs from other kinds of deeds in that it is not used to transfer property. It’s basically simply a mortgage variant that’s widespread in several areas (California, for example). A trust deed gives title to property to a “trustee,” who is generally a trust or title business that holds the land as collateral for a loan. When the debt is paid off, the borrower receives title. The trustee has no authority until the borrower fails on the loan; in that case, the trustee may sell the property and repay the lender without going to court.
A contract for deed is not a true deed. A contract of sale, also known as a “land sale contract,” or “installment sales contract,” is used when a seller funds a property for a buyer. According to the deal, the seller will retain ownership to the property until the buyer pays off the debt.
What exactly is a deed of transfer on death?
Transfer-on-death deeds, also known as beneficiary deeds, are similar to conventional deeds with one major exception: they do not take effect until your death. They are used to bequeath real estate to someone after your death without having to go through probate court.
Using a TOD deed avoids probate since the beneficiary designated on the deed gains title of the property immediately after your death.
TOD deeds are now permitted in more than half of the states.
When you create a TOD deed, you identify the beneficiary of your house or real estate, sign the deed, get it notarized, and file (record) it with your local land records office (also known as a county recorder’s office or register of deeds).
What exactly is a deed? What form of deed should I use—grant, quitclaim, or warranty?
A deed is a legal document that transfers property ownership. It includes the names of the previous and new owners, as well as a legal description of the property, and is signed by the person transferring ownership. Real estate cannot be transferred without anything in writing, which is nearly often a deed.
Here is a list of the most prevalent sorts of deeds:
A quitclaim deed conveys a person’s ownership interest in a property. It gives no promises concerning the scope of the individual’s interest. Divorcing couples often employ quitclaim deeds, in which one spouse transfers all of the couple’s real estate rights to the other. This is particularly important if it is unclear how much of an interest, if any, one spouse has in property held in the name of the other. (However, a quitclaim deed does not release the party transferring title from any mortgage.)
Quitclaim deeds are also often used when there is a “cloud” on title—that is, when a search finds that a prior owner or another person, such as a previous owner’s heir, may have a claim to the property. To transfer any residual interest, the person might execute a quitclaim deed.
A grant deed conveys ownership while also implying certain assurances, such as that the title hasn’t previously been transferred to someone else or that it hasn’t been encumbered, save as specified in the deed.
A warranty deed conveys ownership and expressly guarantees the buyer that the transferor has sound title to the property, which means it is free of liens or claims of ownership. The transferor assures that if this is shown to be incorrect, he or she will reimburse the buyer. Other guarantees may be included in the warranty deed to address specific issues with the transaction.