What is the Difference Between a Title and a Deed?
When investing in property, the buyer inevitably shoulders a great many burdens. A host of payments, fees, moving expenses and other costs associated with the acquisition of a property can quickly overburden. In addition, the number of legal terms needing to be parsed can seem quite daunting. For these reasons, understanding the difference between a title and a deed is crucial.
Titles Determine the Rights Governing Property Use
Simply put, a title demonstrates and defines the formal rights an owner holds over a piece of property, be it a vehicle, building or parcel of land. An individual may “take title” at the time of purchase. One point from which stems a great deal of confusion is the decoupling of the multiple rights associated with a piece of property. For example, an owner may lay claim to the rights of possession as well as use, but he might legally sell off the water rights to the city.
Depending on the type of property in question, there are many different varieties of rights that can be separated and distributed among interested parties. One who sells off part of the family farm to a developer could abandon both the rights to possession and use, and the company would also retain ownership of the development rights in order to repurpose the land. An easement may also be sold, which would grant an individual or group the right to enter the property (still owned by seller of the easement, in this case) and make use of it in the manner specified within the legal document.
Upon purchase, a buyer should always fully investigate the granted title. The grantor may not be giving the grantee all the rights the latter assumes he is slated to receive. The security of his financial future depends on the degree of his knowledge. Laws and regulations differ from state to state, and even city to city. Thus, it may be in a prospective buyer’s best interest to seek competent counsel before proceeding. Visit Marina Title’s Overview page for more information.
Deeds Transfer Titles Between Parties
In order to assume control of the rights of a property, these rights must be transferred in the form of a written statement. Through these legal documents, the grantor passes the rights of the title on to the buyer. There are many species of deed, from warranty deeds, special warranty deeds, quit claim deeds and so on.
A deed may be held individually or in concert with others. Special interests, companies, trusts and other parties may each hold deeds. A buyer’s title of ownership depends upon the language in the deeds granted to him. These documents are kept at the local courthouse as matters of public record.
For further information on titles, deeds and title insurance, visit Marina Title’s Overview page or contact us by phone at (305) 901-5628 or by email at [email protected].
