Definition of Abbreviated Title & Warranty Deed
Though rules vary from state to state, a certificate of title identifies the owner of a piece of land or property, and a warranty deed guarantees that the property has no liens or encumbrances on it. Abbreviated titles are granted when changes in property ownership occur.
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Certificate of Title
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Titles are issued new, altered or transferred. All mortgages, liens or other changes to property ownership are recorded with the deed and abbreviated title to the property. Abbreviated titles occur when marital status changes, when mortgage or home equity loans are assigned or discharged or, in the case of business property, when the partnership or corporation changes.
Mortgage
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A deed of trust is a record of a mortgage or loan against a property as collateral to secure a promissory note. The Mortgage Electronic Registration System (MERS) houses mortgage data, collateral security documents and information on property owners. Assigns and discharges of mortgages on property are recorded in the MERS system and on the abbreviated title and warranty deed.
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Death
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When a property owner dies, survivors inherit the property with (1) a license to sell, (2) a sale under the power of a will or (3) a transfer of title. If one property owner dies, surviving owners do not need a new title, but must file a certified copy of the deceased owner's death certificate. Heirs may petition the land court for a new certificate of title. A new title search is not required, and an abbreviated title may be granted.
Life Estate
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Life estate deeds convey ownership of real estate or right to sell property to another while retaining a lifetime right to live in the house. The owner and lifetime right are both recorded on the abbreviated title and deed.
Sheriff's Sale
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A sheriff's sale is for a mortgage company, lien holder or a municipality for nonpayment. The abbreviated title is transferred to the mortgage company or a trustee, who sells the property after following all the legal procedures. The new owner acquires the abbreviated title and warranty deed under power of sale.
Lis Pendens
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Lis pendens on a deed or abbreviated title indicates that the property is involved in litigation or that there is a lien or encumbrance on a property. Phase-in assessments are changes in tax rates or changes in property value recorded with a deed or title. For example, say a percentage of the changed rate is paid in the first year and a larger percent in the second year until the total changed rate is applied in the third year. If the property owner changes, the new owner owes the full amount.
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