Did you think that Property Deed and Title are the same? These both are actually terminologies used in real-estate when you buy or sell some property. Most of the people believe that property deed and title are same. But you are totally mistaken! These are two different legal concepts. These terms are very close but different when it comes to mortgage processing. When you will buy a property, you will have both deed and title with you. Mixing these together can create a problem. Here we can discuss the difference and its importance thus will clarify the difference between property deed and title.
Property Deed
A property deed is a legal document through which the title of the property is transferred to another person. The Deed entry services say that deed is the vehicle that transfers interest from one to another. To avoid illegality it should be a written document, according to the statute of fraud. A property deed is the most important document through which you will earn the title. The deed has to be registered or recorded in the courthouse or an assessor’s office to make it in a legal format. But if this is not done, the transfer of title will happen, but the deed will be imperfect. An imperfect deed can be transferred, but this will be noticed that the paperwork was not done properly.
There are many types of property deeds. There are some deeds which stipulate certain conditions for transfer. There is warranty deed which is a deed written by the seller to the buyer saying that he or she has a title for the specific property and it is clean. If any discrepancy arises later, the seller will compensate the buyer. This is usually done before the transfer of property. Another deed is quit claim deed which is used to transfer the ownership of property among parties with a well-known and innocent relationship, like family members. Quit claim deeds never provides guarantees like some of the other deeds do (seller owns the property) but this lets you complete a fast and simple deal. Since the parties have a recognized relationship, the receiver of the deed believes that the owner has legal ownership of the title, and does not need a surety in the deed. In mortgage Foreclosure services, checking and verifying the title and deed are important factors as this can result in a lot of legal issues if not done properly.
Property Title
Property title is not a physical document of a property. The title is something that you own and you can use that piece of the property. Thus he or she has all the power to access or modify the property. Sometimes Title search services will reveal that you are the only owner of that whole property and that time you will have full interest in it. If you have partial interest, you hold one share of that property. If you have full interest, you can give the full property or piece of it to anyone. But if you hold only one share, you can only transfer the interest which you have. Title interest details will be there in the documents. In short, title is nothing but the ownership of the property. But if you want to transfer it to someone else, it is possible only through a deed.