What Is Deeded Property?
When a piece of property is totally paid and duly recorded in the public records, the owner of record can do anything within the law with it. The uniqueness of a deeded property lies in the fact that there is no outstanding financing on it. Property deeds come in many different variations. However, the owner can choose any one of four things with it: sell, rent, bequeath or give it away.
Other People Are Reading
-
Definition of a Deed
-
The deed transfers ownership of real estate. Certain pieces of information must be present on the deed. Names of the old owner and the new owner are imperative. A legal property description along with the signature of the person making the transfer must appear on this deed.
Some types of deeds are quite common and others are special occasion deeds. The list includes a contract for deed, covenant deed, deed of lease, fiduciary deed, grant deed, quitclaim deed, tax deed, deed of trust, warranty deed and others more common in other countries.
Common Types of Deeds
-
Three common deeds are the quitclaim, the grant and the warranty. The grant deed makes a promise that the property title is available to this one buyer and no one else has a lien or a claim to the property. If the title does have a cloud on it, the owner has an obligation to disclose it. A clean title means that a different type of deed should be the vehicle of choice.
A warranty deed unequivocally promises a clean title--that is, no lien or claim to the property exists. If it turns out that a lien or claim is on the record, the seller will agree to compensate the buyer. It is imperative upon the seller to disclose any other quirks of the property.
The most common property deed is the quitclaim deed. The seller makes no promise involving his amount of ownership interest. A quitclaim deed is often the method of property transfer for divorces. It is also the deed of choice when title to a piece of real estate has a cloud of ownership.
-
"Non-Deed" Deeds
-
Two documents for deeded property are not real estate deeds at all. A deed of trust is not for transferring property. It transfers title to a trustee or a title company who holds it until the mortgage is paid. The borrower gets the title at that time.
When the seller is financing property for a buyer, a land sale contract (contract of deed) spells out the terms of that agreement. The seller keeps title to the real estate until payment of the loan is complete.
Not So Common Deeds
-
All of the deeds mentioned involve the title to property and an action by the current owner. A deed of lease pertains to an owner's access to owned property that a renter now occupies. This is necessary when a property is a rent-to-own. The tax deed gives property title to the buyer who pays all back taxes.
The executor or trustee of an estate gains authority to sell property belonging to the estate through a fiduciary deed. A court grants a fiduciary deed when beneficiaries of the estate confirm that the trustee or executor is acting in their best interests.
Deeded Property Restrictions
-
You could own a property free and clear, have the title in your possession and still be subject to restrictions on use. There could be a covenant in place for a certain number of years to keep the uniform look of a development. The title could also limit parking to a given number of vehicles. This issue is common with condominium homes and new developments and limits vehicles to the number of bedrooms.
Specific land purposes are subject to zoning restrictions for the neighborhood. There is a requirement to reveal long-standing easements, such as a shared driveway, a right of way for an access road to land-locked property or rights for utility companies to lay cables, drainage pipes. Building is not allowed over any easement.
Recording a Deed
-
The person transferring a deed to property needs to appear before a notary public, who witnesses the signing of the deed by the seller. In some parts of the country, two witnesses are required to sign the document.
Ideally, the person signing the deed should be the one to file [record] it properly. Most of the land record offices are located in or near the county courthouse and the closing transfer usually occurs in or near that office. Deeds are part of real estate law and this is a specialty area of some lawyers. It is the usual practice to have a real estate attorney present. This person now files the transfer record.
A clerk stamps and dates the document, adding a group of numbers that identifies the location that the deed is to be stored. The owner gets the original deed and the land office keeps a copy.
-
