To most people, the words ‘deed’ and ‘title’ are interchangeable. But there are actually major differences between the two that are important to understand before you start the process of a real estate transaction.
What is a Deed?
A deed is the actual physical, legal document that confirms ownership of a property and typically has information like property lines, a property description, and officially denotes the owner.
When a property is sold or transferred, both parties must sign it to make the transaction legal.
What is a Title?
A real estate title is not always an actual document, instead it’s a legal right and ownership of a property which gives the holder the ability to do things like sell the property.
When you buy a property and receive the deed, the title is transferred to you and you become the official titleholder of that property, receiving it from the previous owner—barring a failed title search which found liens, owed taxes, etc.
The Difference Between a Title and a Deed
While both are legal ways of showing ownership, the difference between the two comes down to what they represent and the fact that a deed is an actual physical document while the title simply represents who has the power to manage the property.
How to Obtain a Deed and Title of a Property
To obtain the deed of a property, you must purchase it and legally transfer the deed over to you by having both you and the owner sign it. Once the purchase goes through, the deed is yours.
The same goes for the title, for the most part. When purchasing a home, your lender will typically do a title search of public records to make sure the seller not only has the title—and the right to sell the property—but also to ensure there are no liens, disputes, back taxes, etc. against that property which might interfere with the transaction.
If all goes smoothly, the title will transfer to you and you will obtain the deed.
When Do You Need Title Insurance?
If all does not go smoothly, you will probably be glad that you had title insurance which is a coverage that protects you from any financial loss that comes due to problems with the title transfer (liens, taxes, claims, etc.).
Title insurance comes in two forms: one for lenders and buyers and one for the homeowners. Both do essentially the same thing and protect the holder from major financial losses that come with title issues.
Though most people think deeds and titles are mostly the same thing, they are two different parts of owning a piece of property and it will benefit you to not only know the difference, but to know how each affects your real estate transactions.
All purchase transactions need to take place at a Plymouth Title Guaranty Corp. closing office
- If a party to the closing is not feeling well, please contact your closer prior to the closing so appropriate precautions can be taken.
- We ask visitors to utilize the restroom in our building upon arrival to thoroughly wash hands before entering our office.
- Only individuals required to sign and/or deliver documents at closings will be allowed in our office. Specifically, closings will be limited to borrower(s), seller(s), agents, and lenders.
- All pens used in the closing will be given to the client after use.
- All closing rooms will be cleaned and disinfected in-between each closing.
- Those picking up checks at our office will be instructed to call our main line and request to speak to a staff member who will plan for delivery to the lobby or parking lot of our office.
- All staff will refrain from shaking hands before or after closings and ask clients do the same.
Please be advised that our staffing may be impacted during this unprecedented event. While we are committed to continuing to provide outstanding service, we ask for your patience in the face of this pandemic.