Stacie Saunders

What’s the Difference Between a Title and a Deed?

4 min read. Jan. 21st. 2023, by Stacie Saunders

When it comes to buying or selling property, the terms “title” and “deed” are often used interchangeably, but they actually refer to different things. Understanding the difference between a title and a deed is important for anyone involved in a real estate transaction.

A title refers to the legal right to ownership of a piece of property. It is a document that establishes the identity of the property owner and the property’s legal description. A title also includes information about any liens, mortgages, or other encumbrances that may be on the property. When a person buys a piece of property, they are buying the title to that property.

A deed, on the other hand, is a legal document that transfers ownership of the property from one person to another. A deed includes the names of the current and new owners, the legal description of the property, and any other relevant information. It is signed by the current owner and notarized, and then recorded with the appropriate government agency. When a person sells a piece of property, they transfer the ownership of that property to the buyer through a deed.

In short, a title is the proof of ownership, while a deed is the document that transfers ownership.

It is important to note that a clear title is vital for the transfer of property ownership, as it guarantees that the property is free from any legal encumbrances or claims. A title search is usually performed before the sale of a property to ensure that the title is clear and that the person selling the property has the right to do so.

In conclusion, a title and a deed are important legal documents that are used in real estate transactions. A title establishes the legal right to ownership of a property, while a deed transfers ownership from one person to another. Understanding the difference between these two documents is essential for anyone involved in buying or selling property.

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