If you are about to get into a real estate transaction, you may have heard the word ‘deeds’ come up in conversation with your real estate agent. Real estate transactions have their own jargon with meanings not commonly known, and it is easy to confuse things. This reason and much more financially significant ones are why you need an expert real estate attorney. You are better off having legal counsel before entering into any real estate transaction.
This blog post covers the basics of what you need to understand about deeds
What are Deeds?
A deed is a legal document used to transfer property rights from a seller to a buyer. It is an official document on paper that is recorded in a courthouse or assessment office. For a deed to be legally valid, it must be signed by the parties selling the property and those buying the property. A deed must also contain a statement of ownership.
Every property deed must be handwritten and include the words of conveyance, a description of the interest in ownership of the property, and a description of the property itself. The deed must also describe the boundaries and location of the property for future reference and clarification. It is essential to ensure that the deed is easy to understand and read in case any problems arise. A deed must be registered in the county where the property is located to protect your property from previous owners.
Why are Deeds Important?
Deeds are very essential because they are the final step in transferring title to a property. Having a deed provides absolute protection, but this depends on the type of deed. Deeds are significant legal documents, and this is why it is vital to have a real estate attorney go through the deed process with you to make sure you are on the right track to a successful transfer of ownership.
Are Deeds different from Titles?
Some people use deeds and titles interchangeably in the real estate industry. However, these are two very different legal concepts. A deed is a publicly recorded physical document that transfers a title from a seller to a buyer. A title is a conceptual term that indicates a person’s legal right to property. This means that while a deed is tangible, a title is not a physical document. It helps to think of a deed as a document and a title as a concept.
What are the Types of Deeds?
Several deed types exist, including grant, warranty, quitclaim, bargain, and sale deeds. Each of these applies differently and has its own specific preparations and requirements. To be considered a legal deed, it must be stated in the real estate deed that it is truly a deed and must be endorsed by a guarantor and a witness to the guarantor’s signature.
What does it mean if my name is on a Deed?
Having your name on the deed means that you legally possess the associated property. If you own a home with your partner, but your name is not on the deed, your partner can legally sell the home and keep the proceeds. If your partner dies and your name is not on the deed, you cannot inherit property unless the will says otherwise. For these reasons, your name should be on the deed if you share a home with your partner. Doing so allows you to occupy, sell, or mortgage that property. However, a deed should not be confused with a sales contract. This concept differs as it refers to a contract allowing the right to sell a property.
If you are looking to own a property or you need to create a deed, discuss with one of the most trusted real estate attorneys in Illinois here.