Difference between deed and title in Florida

The Difference between Deed and Title in Florida

The real estate world has distinct terms that refer to a vast array of concepts. In Florida, sellers and homebuyers sometimes are often overwhelmed by all the legal jargon involved in a simple transaction. 

Even though the terms “title” and “deed” are closely related, they are not the same. In this article, you will discover the difference between deed and title in Florida. 

Title in Florida – Explaining the Concept 

The title of a property refers to the legal ownership of it. Hence, as long as someone has the title of a property, he/she has the right to occupy it, live there, and use it as they wish. 

Although many people think that a title is a physical document, it is not necessarily a piece of paper. 

The most important aspect of a title is the bundle of rights. In this context, the term “bundle of rights” refers to a set of legal privileges that are afforded to the buyer after the real estate transaction is concluded and the title is transferred. 

In the following topics, you will discover what are the legal privileges granted to the buyer by the bundle of rights. 

The Right of Possession

As the legal owner of the property, the buyer has possession of it.

The Right of Control

As the legal owner of the property, the buyer has the right to utilize it as he/she pleases. It is worth noticing that when there is an HOA associated with the property, the entity can restrict some usage of the property (e.g., pet ownership). 

The Right of Exclusion

As the legal owner of the property, the buyer is allowed to limit who may enter his/her property. 

The Right of Enjoyment

As the legal owner of the property, the buyer can do what he/she pleases inside the property – as long as it does not break the law.

The Right of Disposition

As the legal owner of the property, the buyer can transfer ownership of it. 

Why Is It Necessary To Have a Clear Title in Florida? 

In this sense, the owner of a property in Florida cannot transfer its ownership until the property’s title is deemed as clear. A clear title is a title proven to be free of any encumbrances or defects (e.g., liens, judgments, bankruptcies). 

In Florida, no real estate transaction can be concluded without a clear title. 

A clear title is necessary to firmly establish who is the property’s legal owner. Plus, if there is a mortgage/financing involved, the lender will surely require a clear title to protect its interests on the property. 

Before the closing occurs, it is essential to proceed with a title search to identify any potential problems. During the examination, the title expert will look for problems such as: 

• Liens 
• Judgments
• Improper title transfers due to a past paperwork error
• Improperly filed documents
• Foreclosure issues
• Unpaid taxes
• Bankruptcy filings 
• Survey and boundary disputes
• Probate issues
• Erroneous surveys 
• Unresolved building code violations 

Until the title examiner can confirm the absence of any title defects, the title cannot be deemed as a clear title. Hence, the transaction will be delayed until the problems are solved or, depending on the severity of the situation, the deal can be canceled before closing. 

Deed in Florida – Explaining the Concept 

On the other hand, the deed is the legal document that conveys the title to the buyer once the transaction is concluded. 

At the closing process, both the buyer and the seller must sign the deed to settle the real estate transaction. Unlike the title, the deed is a physical document that must be kept in a safe place by the buyer. 

The document will include a detailed description of the property and identify the seller (referred to as the “grantor”) and the buyer (referred to as the “grantee). Once the transaction is concluded, the buyer receives the deed in his/her hands at the closing. 

There are distinct types of deeds, such as special warranty deeds, grant deeds, quitclaim deeds, and bargain & sale deeds. 

In Florida, the most common deed used in home sales is the general warranty deed. Essentially, it provides the most protection to buyers, as the document states that no one except the new owner has ownership rights over the property.

Work with Marina Title to Ensure a Smooth Real Estate Closing  

At Marina Title, we offer a streamlined experience to our customers since we perform all necessary title and escrow services within a single company.  

Our team will ensure your peace of mind when dealing with a closing process in Florida. Call us today at (305) 901-5628 or email us at [email protected] to schedule a consultation.