A deed is a legal document that passes the ownership of a real estate deed (property) from one person to other. Whenever you buy or sell a property, supposing your house, then you will get the transaction done by the help of a deed. This instrument is involved in all the property deals. It involves two parties most importantly- the grantor (one who is transferring the property) and the grantee (one who is receiving the charge). And along with these parties, there is one more party’s intervention involved and that is the notary public. Notary public attests the deed and then there are witnesses that guarantee the occurrence of the transaction.
Key points:
A real estate deed must comply the following check points to make it a legally enforceable document.
1. On its face, the words “The Deed” or some similar term should be used.
2. It must specify the transfer of interest of the real estate property.
3. It must disclose the legal capacity of the grantor to transfer the ownership.
4. It must disclose the legal capacity of the grantee to receive the ownership.
5. It should posses the guarantee of the witnesses.
6. It should be delivered to the grantee.
There are different types of real estate deeds. Majorly there are 4 of them, namely, the easement deed, the grant deed, the quitclaim deed, the warranty deed. Let us look at the details of these sub divisions.
Easement deed is like a right to fish in someone else’s privately pond. Easement deeds are made when the right to a part of the property is transferred to other party and the right to another part is kept intact for you. Most easements fall in these 4 categories- right-of-way, easements of support, easement of light and air and rights pertaining to artificial waterways.
Grant deed is commonly used to transfer the title of the real estate to the other person. Here the property is not sold to any party. The ownership is shifted. It does not require any legal approval by the notary. But some firms do insist on getting it attested. Grant deeds are applicable only when the grantor is alive. A grant deed cannot be issued by using a dead person’s name as the granter.
Quitclaim deeds: are those deeds that convey the interest that a grantor might posses in the property. They are mostly used during divorce, to ensure that a property that is possessed by one spouse and has no relation to the other spouse is not subject to any claim by the former spouse if the deed is transferred to a third party in the future.
Warranty deeds are very similar to the grant deeds. The only difference that the two have is that the grant deeds have 2 guarantees and warranty deeds have 3 guarantees. Rest all the clauses are similar. Here also, the ownership is not transferred, the title is transferred.
“Author’s say’s” A real estate deed must comply the following check points to make it a legally enforceable document.
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