House Title vs Deed: The Difference

When it comes to dealing in real estate such as selling, buying, or transferring your home, you may encounter many technical real estate terms and jargon. You must know the difference between House Title vs Deed.

Sometimes, you may also develop ambiguity or misinterpretations while transferring, selling, or buying your real estate property due to these terminologies. That’s why it is crucially important that you know what they mean so that you have clarity in your mind about the transactions or dealings that you are making.

Such most frequently used real estate terms are ‘title’ and ‘deed’. Title and deed are terms that are often used interchangeably. However, both are different concepts.

Both deed and title are very closely connected to each other and are related to house ownership. As a result, it may cause a lot of uncertainty.

So, let’s dive deep into understanding what house title and house deed mean and how they differ.

What Is a House Title?

When you buy a real estate property, owning the title is a vital aspect of the process and is legally important while complex too at the same time.

Having a title to property implies that you have legal rights relating to the ownership of the property. In simple words, a house title isn’t any physical document. But in fact, it is a concept that stands for having legal rights under the property’s ownership.

Someone else might be able to claim that they are the rightful owner of your home and that the person who sold it to you lacked the authority to do so if you don’t have a clear title to your property.

This can lead to significant legal repercussions so you should steer clear of it at all costs.

What Is a House Deed?

A house deed is a physical written document that transfers the ownership of a property from one party to another. In other words, titles are transferred by using deeds.

There are different types of house deeds such as General Warranty Deeds, Special Warranty Deeds, and Quitclaim Deeds. They are all serving their purpose.

Usually, in the buying and selling process of a house, the buyer and seller are required to sign this house deed in order to transfer the ownership of the property.

The person who signs the deed for transferring the title of the property is called the grantor. Whereas the person taking possession of the ownership rights is called the grantee.

Now that you are clear about what title and deed mean, let’s jump on to understand more in detail about how they differ.

What Is the Difference Between House Title and Deed?

⦁ Concept

As discussed above, the title conveys the ownership of a property and the associated legal rights. While a deed is a physical written document and represents the transfer of the title of ownership from the grantor to the grantee.

To understand the difference in a more simplified way, a deed is an actual physical document while a title is a concept. Also, a deed is a written document that is recorded officially in an assessor’s office or courthouse.

Despite their differences, it is also crucial to understand that they cannot exist apart. They both form part of the whole transfer process of the house.

⦁ Objective

When you claim you own the property it means you have title to it and have the legal rights to use it. On the other hand, a deed is the legal proof of this title and is a document used for the transfer of this property.

In a nutshell, the objective of a deed is to prove the transfer of ownership from one party to another. While the purpose of the title is to represent the legal rights to own, use, and modify a property.

A deed serves as the owner’s legal claim to the property. On the other hand, the title identifies the legal owner of the property.

⦁ Process

Before initiating the transfer process of the real estate property, it is to examine whether the seller owns the title and can sell the property. It is also checked if there are any associated limitations on the property for sale.

This is known as a title search. To check if there are any liens or conflicting claims against the property, public records are reviewed under the process of the title search.

After checking the public records, the title examiner will conclude and create a title abstract. This title abstract will state whether the seller has ownership or not and if he can sell the property or not.

Once the seller receives the approval for a clear title, the seller can go ahead with the closing process of selling.

Further, when the deed is received, the seller can transfer the title and ownership of the house by signing it. Then the buyer signs, inheriting the title and paying off the previous mortgage loan (if any).

This is how during the closing process, the title and the deed come into play at different points.

The Final Say

A valid sale or transfer of property requires both a proper property deed and a proper title. Both are a part of the process and play a significant role at different points.

Both concepts differ and are related to the ownership of the property, despite often being used interchangeably. However, both title and deed are important to accomplish the process and hold tremendous legal importance.

Dealings in real estate become easier when you have extended support from professionals. Elite Properties, based in New York, aims to make the process of buying and selling more manageable.

Having handled the most competitive and personalized services in real estate ensures to maintain transparency. It also has provisioning information related to real estate buying and selling.

For expert support in buying and selling your property get in touch with us today!

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