How to Make a Legal Property Document
A legal property document may take many forms. For example, a standard deed is a document by which the owner of real property transfers title in and right to the property to another party. A deed of trust is similar to a mortgage in that property is used as security for a debt. A quit-claim deed is an instrument that a borrower uses to transfer their remaining interest in a property. A warranty deed is used to guarantee that a title to a property is free of encumbrances. Making, or crafting, these property documents is as simple as understanding the duties of each party to the contract and the purpose of the document.
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Things You'll Need
- Standard deed
- Quit-claim deed
- Warranty deed
- Deed in lieu of foreclosure
Instructions
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1
Create two parties for standard deed documents. Separate the grantor from the grantee. Establish the duty of the grantor to transfer real property to the grantee and create a description of the property.
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2
Form three parties for deeds of trust documents. Establish who will be the trustor (borrower), the trustee (title company) and the beneficiary (lender). Structure clauses that refer to the existing condition of the mortgage in relation to the outstanding principal plus the annual interest rate. Use wording to refer to the borrower's duty to pay costs of assumption, transfer escrow balance, repair and maintain the property and pay delinquent taxes.
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3
Craft a quit-claim deed in which the seller transfers interest in and makes no warranties as to the title of the property and the buyer assumes all risks related to title claims and liens against the property. Shape wording to reflect the seller's obligation to the original mortgage and promissory note.
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Create warranty deeds for a seller who transfers his ownership in a property, free and clear of liens and title claims. Structure the property document to refer to the seller as transferor and the buyer as transferee. Fashion a clause that obligates the seller to compensate the buyer if a third-party sues for a judgment against the property.
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5
Create deed in lieu of foreclosure property documents to refer to the grantor's acknowledgment of his present default status with the lender. Customize a description for the property and include the location's address and the property's parcel number. Create a grantee and identify his role as a lien holder on the property.
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Construct signature, date, and notary lines. Create a section for the state seal near the end of the property document.
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Tips & Warnings
There is another type of legal property document. It is called special warranty deed, a document in which the grantor agrees to protect the grantee from title claims.
Language such as "grant," "sell," "bargain," and "convey" refers to the grantor's role in warranty deeds.
References
Resources
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