A Deed is the document that transfers ownership of real estate. It contains the names of the old and new owners as well as a legal description of the property, and is executed by the parties transferring the property.
Do I need a Deed to transfer property?
Almost always. You can’t transfer real estate without having something in writing. In certain situations, a document other than Deed is used-for example, in a divorce; a court may order the transfer of property from joint tenancy to an individual.
There are various types of Dedds. The following are examples of some of the most common types of Deeds
A Quitclaim Deed transfers whatever ownership interest you may have in the property. It makes no guarantees about the extent of your interest. Quitclaim Deeds are commonly used by divorcing couples; one spouse signs all his/her interests in the couple’s real estate over to the other party. This can be especially useful if it isn’t clear how much of an interest, if any, one spouse may have in the property that’s held by the other spouse. Quitclaim Deeds are also used to cure technical defects in a title. They can be used eliminate any potential claims against the property from a person with an uncertain or potential interest to the property.
Deed of Trust:
A written instrument by which title to an interest in land is transferred by the trustor to a trustee as security for a loan or other obligations due a beneficiary. Also called “trust deed.”
A Grant Deed transfers your ownership and implies certain promises-that the title hasn’t already been transferred to someone else or been encumbered, except as set out in the Deed. This is the Deed most commonly used in the most states.
A Warranty Deed transfers the ownership and explicitly promises the buyer that you have good title to the property. It may make other promises as well, to address particular problems with the transaction.
Does a Deed have to be notarized?
Yes. The party transferring the property will need to execute the Deed in the presence of the notary public. The notary public will then sign and affix their notary seal to the original document. The notarization process means that the notary public has verified that the signature(s) on the Deed is true and genuine. The signature must be notarized before the Deed will be acceptable for recording.