house title vs deed

House Title vs Deed: What Are the Differences?

VWB Blog 2 years ago 43

In 2021, Americans sold about 762,000 properties in the US. If you are currently in the home buying process, you will undoubtedly have come across articles about deeds and titles. And, as the number of Americans putting down payments on first homes increases, this process is a big responsibility worth preparing for.

Home buyers should research the title of any home before buying, as one mistake could cost them a great deal of money. Sellers should be sure their title is in order before putting their homes up for sale. So what’s the difference between a house title vs deeds?

Read on to learn the differences between a house title and a deed.

What is the Difference Between House Title vs Deed

A house title is a legal document, whereas a house deed is a physical document. A house title comes from a government authority and is registered with a land registry office. On the other hand, a deed is a physical document signed by the homebuyer and seller and transferred to the new owner.

Additionally, a house title contains information about the property, such as size, legal description, and any easements or covenants. On the other hand, a deed transfers property ownership from one person to another.

If there are any outstanding liens or mortgages on the property, you can find them on the house title. Deeds do not contain this information.

house title vs deed

What are the Different Types of Deed

A warranty deed guarantees that the seller owns the property and that there are no liens or encumbrances on the property. A quitclaim deed transfers property between family members or close friends. Though, it does not guarantee that the seller owns the property or that there are no liens or encumbrances.

A special warranty deed is similar to a warranty deed. But, it only guarantees that the seller owns the property at the time of the sale and not that there are no liens or encumbrances on the property.

You can consult a professional realtor for more house title reviews and even get house deed guides. Visit your local realtor’s website if you’re interested in buying a property, and check these homes for sale.

What is a Title Insurance

A title insurance policy protects the policyholder from financial loss if there is a property title defect. Experts suggest that home buyers purchase title insurance or have the seller buy one before their transaction.

Conducting a Title Search

A title search is a process undertaken by a conveyancer to check the accuracy of the title deeds and to ensure there are no adverse claims or encumbrances on the property. A property buyer usually pays for a title search as part of the conveyancing process. It is important to note that a title search does not guarantee the accuracy of the title deeds or that there are no adverse claims against the property.

Having the Proper Documents in Dealing with Real Estate Properties

Learning about house title vs deed is essential when getting a new home. When purchasing a property, it is vital to ensure that you have a house title. This will give you legal property ownership and protect you if something goes wrong.

If you only have a deed, you may not be able to prove that you own the property and could lose it if there is a dispute. Always make sure you have a house title when buying a property.

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