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Deeds FAQ |
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They're not just for playing Monopoly -- answers to
frequently asked questions about deeds.
What's Below:
• What is a deed?
• Do I need a deed to transfer property?
• I'm confused by all the different kinds of deeds --
quitclaim deed, grant deed,
warranty deed. Does it matter which kind of deed I use?
• Does a deed have to be notarized?
• After a deed is signed and notarized, do I have to put it
on file anywhere?
• What's a trust deed?
What is a deed?
A deed is the document that transfers ownership of real
estate. It contains the names of the old and new owners and
a legal description of the property, and is signed by the
person transferring the property.
Do I need a deed to transfer property?
Almost always. You can't transfer real estate without having
something in writing. In some situations, a document other
than a deed is used -- for example, in a divorce, a court
order may transfer real estate from the couple to just one
of them.
I'm confused by all the different kinds of deeds --
quitclaim deed, grant deed, warranty deed. Does it matter
which kind of deed I use?
Probably not. Usually, what's most important is the
substance of the deed: the description of the property being
transferred and the names of the old and new owners. Here's
a brief rundown of the most common types of deeds:
A quitclaim deed transfers whatever ownership interest you
have in the property. It makes no guarantees about the
extent of your interest. Quitclaim deeds are commonly
used by divorcing couples; one spouse signs all his rights
in the couple's real estate over to the other. This can be
especially useful if it isn't clear how much of an interest,
if any, one spouse has in property that's held in another
spouse's name. A grant deed transfers your ownership and
implies certain promises -- that the title hasn't already
been transferred to someone else or been encumbered, except
as set out in the deed. This is the most commonly used kind
of deed, in most states. A warranty deed transfers your
ownership and explicitly promises the buyer that you have
good title to the property. It may make other promises as
well, to address particular problems with the transaction.
Does a deed have to be notarized?
Yes. The person who signs the deed (the person who is
transferring the property) should take the deed to a notary
public, who will sign and stamp it. The notarization means
that a notary public has verified that the signature on the
deed is genuine. The signature must be notarized before the
deed will be accepted for recording (see the next question).
After a deed is signed and notarized, do I have to put it
on file anywhere?
Yes. You should "record" (file) the deed in the land records
office in the county where the property is located. This
office goes by different names in different states; it's
usually called the County Recorder's Office, Land Registry
Office or Register of Deeds. In most counties, you'll find
it in the courthouse. Recording a deed is simple. Just take
the signed, original deed to the land records office. The
clerk will take the deed, stamp it with the date and some
numbers, make a copy and give the original back to you. The
numbers are usually book and page numbers, which
show where the deed will be found in the county's filing
system. There will be a small fee, probably about $5 to $15
a page, for recording.
What's a trust deed?
A trust deed (also called a deed of trust) isn't like the
other types of deeds; it's not used to transfer property.
It's really just a version of a mortgage, commonly used in
some states (California, for example). A trust deed
transfers title to land to a "trustee," usually a trust or
title company, which
holds the land as security for a loan. When the loan is paid
off, title is transferred to the borrower. The trustee has
no powers unless the borrower defaults on the loan; then the
trustee can sell the property and pay the lender back from
the proceeds, without first going to court.
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