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What is a House Deed?
A house deed is a legal document that shows proof of ownership for a specific property. It is an important document for both buyers and sellers of a home as it serves as proof of ownership and provides a detailed description of the property. The deed also outlines the rights and responsibilities of the owner in regard to the property. In most cases, the deed is signed by the seller, buyer, or both parties and then recorded with the county or local government. The house deed is an essential part of the home-buying process and establishes the rights and obligations of each party involved in the transaction.
Definition of a house deed
A house deed is a legal document that transfers ownership of a property from one person to another. The document can be in the form of a deed of trust or a warranty deed, depending on the circumstances. The deed may also be referred to as a title deed, a property title, or a real estate title. A deed of trust, one type of house deed, shows that a person has a legal obligation to pay a certain amount of money if another person does not pay back a loan. A warranty deed is a type of house deed that transfers ownership of a house with no obligations attached.
Components of a house deed
A house deed is typically made up of the following components:
- Property Description – This section of the deed contains a detailed description of the property, including the street address, type of property (e.g. house, condo, lot), location, and other pertinent information.
- Seller – The seller is the person who is transferring ownership of the property to the buyer. The name of the seller is listed as the grantor in the deed.
- Buyer – The buyer is the person who is accepting ownership of the property from the seller. The name of the buyer is listed as the grantee in the deed.
- Sale price – The amount of money exchanged as payment for the property.
- Date – The date of the transaction, including the date the deed is signed and the date it is recorded.
How a house deed is recorded
When a house deed is signed, it is necessary to have it recorded to provide evidence of transfer of ownership. A county or local government keeps a record of all house deeds, which can be accessed by the public. A deed recorded with a government agency has more weight than one that is not. If there is any dispute or problem with a house deed, such as a fraudulent sale or undisclosed liens or encumbrances, it is easy to check the record to see what is listed. When a house deed is executed, it is sent to the government office that handles real estate transactions. The government official reviews the deed and records it in the public record. In most states, the deed must be recorded within a certain period of time, which is usually about 30 days.
Rights and obligations of each party in the house deed
The rights and obligations of each party in the house deed depend on the type of house deed used in the transaction. In a deed of trust, the buyer is the mortgagee, the seller is the mortgagor, and the lender is a third-party beneficiary. In a warranty deed, the buyer is the grantee and the seller is the grantor. A deed of trust – In a deed of trust, the seller promises to pay the buyer if the loan is not repaid. The deed of trust obligates the homeowner to pay off the mortgage to the lender. The third-party beneficiary is the person who receives the loan payments. Warranty deed – In a warranty deed, the seller promises to take care of any issues with the property. The seller is responsible for any liens or encumbrances on the property. The buyer is responsible for paying off the mortgage.
How a house deed benefits buyers and sellers
A house deed serves as proof of ownership and prevents any disputes about who really owns the property. A house deed establishes who has the rights to the property and who is responsible for the property’s condition. A house deed also makes it easy to transfer the property from one person to another. It is important to record the deed with the government so that it is a valid legal document.
Different types of house deeds
There are two main types of house deeds: a warranty deed and a deed of trust. A warranty deed is the most common type of house deed and is used when there is no mortgage involved. A deed of trust is commonly used when a house is purchased with a mortgage. Below are the characteristics of the two types of house deeds.
- Deed of trust – A deed of trust is a document used to transfer title to real estate in the event that a mortgage loan is not repaid. The deed of trust is a type of conditional conveyance. A conditional conveyance is a promise to transfer title to real estate at a later time.
- Warranty deed – A warranty deed is a type of deed used to transfer title to real estate to another party without any conditions or liens on the title. A warranty deed is also known as an “assignment of the title”.
How to obtain a house deed
When the house purchase is complete, the seller will sign a house deed and make two copies, one for each party. The buyer and seller will then take the original and two copies of the house deed to the county or local government office that handles real estate transactions. The parties involved in the transaction will each be responsible for recording their own house deed. It is important that the house deed is recorded within the correct time period. If not, the house deed will not be valid. In some cases, it is also important to record the deed in the different government offices in counties along the border between states.
The process of transferring a house deed
A house deed can be transferred in the following ways:
- Assignment – The process of transferring the right to receive payment of a debt or mortgage. Both the buyer and seller sign the deed of trust and assign it to the lender or third-party holder. The lender or third-party holder will then foreclose on the property if the borrower does not repay the loan.
- Execution – The process of transferring the right to receive payment of a debt or mortgage. Both the buyer and seller sign the deed of trust and execute it. The deed of trust is then recorded in the public records.
- Subrogation – The process of transferring the right to receive payment of a debt or mortgage. The seller signs the deed of trust and subrogates the debt to the buyer. A third-party holder will then foreclose on the property if the borrower does not repay the loan.
Common problems associated with house deeds
A house deed can be challenged in certain circumstances, such as when a homeowner has died and the house deed is not recorded. A house deed is typically challenged in the following situations:
- Forgery – A house deed is forged when someone falsifies a house deed, such as when a seller signs a house deed but does not actually own the property.
- Undisclosed encumbrances – An encumbrance is a claim on the property that is not revealed in the house deed. These are usually debts such as a mortgage or a lien against the property.
- Unrecorded house deed – A house deed is not recorded when it is supposed to be. This can occur if the seller is not aware of the requirement to record the house deed.
How to protect your house deed
When you purchase a home, it is important to protect your house deed. A house deed can be protected in a variety of ways, including:
- Signing an escrow agreement – An escrow agreement is an agreement between a buyer and seller that puts the house deed in a neutral third party’s hands until the transaction is complete. –
- Recording the house deed – Recording the house deed with the government will provide evidence of ownership.
- Using a title insurance policy – A title insurance policy is a type of insurance that covers the cost of repairing a house deed if there are any errors.
- Obtaining a lien clearance – A lien clearance is a document that shows all liens against the property have been cleared.
- Protecting the house deed with a trust – A trust is used when a seller does not have the resources to make payments on a house loan.