Understanding Property Deeds & Real Property

Transactions come in all shapes and sizes, but they usually involve two parties: the buyer and the seller. Once a buyer pays for an item or service, they can take ownership of it. However, purchasing property is a bit different in that there’s usually a lot of paperwork involved before you can claim ownership. One of the most important documents you’ll come across when buying property is the property deeds.

What are Property Deeds?

Property deeds are legal documents that establish the new ownership of real property. Real property is land or anything attached to it, like buildings or roads. A deed must identify the grantor and grantee, and provide a sufficient description of the property. It’s important to understand how property deeds work to ensure a smooth transition of ownership.

Deeds are legal documents and they are used to transfer ownership of property. In order for a deed to be legally binding, it must contain certain information, such as the names of the parties involved, a description of the property, and the date of the transfer. There are different types of deeds that can be used for different purposes, such as warranty deeds, quitclaim deeds, and special purpose deeds.

Livery of seisin was the old-school way of transferring real property. The person giving up the land would hand over a twig or clod of turf to the person receiving the land. A verbal or written statement would accompany the gesture, but it was the livery of seisin that made the transfer legal. Real property is conveyed by a paper deed.

Deeds are often seen as more official than other types of documentation. They are often a result of a court or legal ruling. However, they can also be private. They are executed by a deal between two or more individuals or businesses.

Necessary Information included in Deed

The content of a deed varies depending on the type of deed, but most deeds will include the following information:

• The property description, including its boundaries, adjacent roads, and utilities;
• The names and signatures of the seller and buyer;
• A clause authorizing the transfer of ownership of the property; and
• The final price of the property.

Critical Deed Elements

While each state has its necessities, the majority of deeds must contain several critical elements to be legally valid:

• They must be in writing.
  The majority of deeds come in printed forms and have no legal constraint on them. All it should include are the essential elements of deeds.
• The grantor must possess the legal capacity to transfer the property and the grantee must be capable of receiving the grant of the property. If a person can draw a contract with legal force, that individual is considered to be competent to serve as a grantor.
• The grantor and grantee must be recognized in such a way as to be ascertainable.
• The property must be sufficiently described.
• Operative words of conveyance must exist. All standard form deeds contain the necessary legal language that essentially transfers the property.
• The deed must be signed by the grantor or grantors in case the property is owned by more than one individual.
• The deed must be legally conveyed to the grantee or someone acting on the grantee’s behalf.
• The grantee must recognize the deed. But he can refuse delivery of the deed in certain circumstances.

Types of Deeds

Deeds are of various categories. They may be official or private. Official Deeds and implemented under court to legal proceedings. Most property transactions, though, contain individuals and business entities using private deeds.

We can classify deeds according to the type of title warranties. The different types of deeds are as follows:

General Warranty Deed

The general warranty deed bids the grantee the utmost protection. With this type of deed, the grantor makes a series of legally binding promises (called covenants) and warranties to the grantee (and their heirs) agreeing to safeguard the grantee alongside any prior claims and demands of all persons whomsoever in regards to the conveyed land. The usual covenants for title involved in a general warranty deed are:

• It is the covenant of seisin, denoting that the grantor warrants they possess the property and has the legal right to transfer it
• This is as the covenant against encumbrances, signifying that the grantor warrants that the property is free of liens or encumbrances, excluding as specifically stated in the deed
• the covenant of quiet enjoyment. It signifies the grantee will have quiet possession of the property. And it will be true if the grantor has a defective title.
• There is a covenant of further assurance, where the grantor assures to deliver any document necessary to make the title good

Special Warranty Deed

Whereas in a general warranty deed, the grantor assures to warrant and defend the title carried out against the claims of all persons, the grantor of a special warranty deed warrants that they acknowledged the title to the property and that they have not done anything while holding the title to create a defect.

The defects that arose during the grantor’s ownership are in warranty. Because of this restraint, the special warranty provides the grantee less protection than the general warranty deed. Several purchasers of real estate will assert a general warranty deed to guard against problems that could arise as a consequence of a special warranty deed.

Quitclaim Deed

The quitclaim deed, also called a non-warranty deed, offers the grantee the least amount of protection. This type of deed conveys whatever interest the grantor currently has in the property—if any. There are no warranties or promises of the quality of the title. If the grantor has a good title, the quitclaim deed is essentially as effective as a general warranty deed.

However, if the title contains a defect, the grantee has no legal recourse against the grantor under the deed. A quitclaim deed comes into use when the grantor wants to avoid the liability under title covenants or is unsure of the status of the title.

Special Purpose Deeds

Special purpose deeds exist in connection with legal procedures and situations. It happens when the person acting on behalf of the government executes the deed. Utmost special purpose deeds offer little to no protection to the grantee. They are quitclaim deeds. Below are examples of special purpose deeds:

• Administrator’s Deed: This deed is viable when a person dies intestate. The court-appointed administrator reviews the decedent’s assets. This helps to transfer the ownership of the real estate to the grantee.
• Executor’s Deed: When a person dies estate, the executor’s deed comes to use. The estate’s executor will distribute the asset of the decedent. He will convey the title to the grantee.
• Sheriff’s Deed: A successful bidder at an execution sale receives a sheriff’s deed. It equates to the judgment that has been against the owner of the property.  The grantee accepts whatever title the judgment debtor has.
• Tax Deed: When a property is in trade for delinquent taxes is a Tax Deed.
• Deed in lieu of Foreclosure:  This is a legal document between the borrower and the lender who is in default on a mortgage. The lender agrees to allow the borrower to avoid foreclosure proceedings. This happens if the lender agrees to take the deed instead of foreclosure. Many lenders favor foreclosing to clean up the title.
• Deed of Gift (Gift Deed). Deed of gift transfers Real Estate title without contemplation or token consideration. It is mandatory to record the gift deed within two years in the near states.  

What is Real Property?

Real property is not just a piece of land that you can touch and see, but the real property is also the materials that make up the land, such as buildings, trees, and any other structures. Real property is also known as real estate. It is a legal interest in land and anything permanently attached to the land. Real property can also include items that are above the ground, like antennas. In the US, real property is usually refer to as a real estate.

Real property works in a legal context. It is a property in which there is a real right to possession and use. You have to fill out forms for the transfer of Real Property.

The Bottom Line

However, refer experts from Elite Properties who can assist you in making the right decision.

We are a cash buying company that suggests we provide fast closings. Call us at 718-977-5462 today.