How to Transfer a Title of Real Estate

The transfer of a real estate title occurs when the legal ownership rights to a property are conveyed from one person or entity to another. A title refers to the legal evidence of ownership in real estate, and the instrument used to transfer the title is a deed. According to "Mastering Real Estate Principles" by Gerald R. Cortesi, it is also important to note, "A deed can transfer title only if it is in proper legal form and conforms to the requirements of the state in which the property is located."

Instructions

Requirements for a Valid Deed

1. Check your state law regarding deeds. According to Cortesi, a deed must include all of the parts that are required by various state laws; however there are basic requirements that must also be met for a deed to be considered valid. The deed must be in writing, and must state who is transferring the title, the grantor, and who is receiving the title, the grantee.

2. Identify the grantor of the deed. The grantor of the deed must have the legal capacity to transfer the title, and cannot be a minor or or someone who is considered legally incompetent.

3. Identify what items will be exchanged. A deed needs to also include the consideration, or what item of value was given in exchange for the title.

4. Include a granting clause. A granting clause stating the owner's intention to transfer the title to another person or entity must also be in the deed.

5. Define what is being granted. The habendum clause must define the quality and quantity of ownership being granted. According to Cortesi, reservations or exceptions are also often included here, for example if the grantor would like to keep any rights to the property, or easements, as well as any deed restrictions there may be.

6. Include a description of the property. A deed needs to include a legal description of the real estate being transferred.

7. Sign the deed. The grantor, or the person transferring the title, must sign the deed.

8. Notarize and record the deed. The deliverance and acceptance of the deed needs to be acknowledged by either a notary public or officer of the court, and then recorded. Deeds are usually recorded on file at a local registry of deeds, and some states require that when real estate titles are transferred that a transfer tax be paid when the deed is recorded.

Tips & Warnings

• Since a deed is a legal document, it should be prepared by someone who is familiar with the local laws and procedures to ensure the transfer is done correctly for a particular locale.

References

• "Mastering Real Estate Principles"; Gerald R. Cortesi; 2004