Documents such as titles and deeds play a crucial role in transferring and establishing ownership during real estate transactions.
Understanding the differences between deeds and titles is important if you are buying or selling property. Furthermore, you should learn about the purpose of these documents and possible problems you might encounter.
Deeds and titles
Deeds are legal documents that enable the transfer of property ownership between two parties. There are different varieties of deeds depending on the nature of the real estate transfer. For example, there are specific gift deeds you can use if you transfer ownership of a real estate property to a loved one. A title, on the other hand, describes a property’s size and location as well as who owns it. Titles also often list encumbrances, including mortgages and liens on the property.
Creating and altering deeds and titles can be complex. There are many problems related to documentation you might encounter while buying, selling and transferring real estate. For example, inaccurate information regarding the boundaries and ownership of your property can cause serious legal issues in the future.
In addition, you could discover a lien on your property that you did not realize existed. For example, liens related to child support payments or mechanic’s liens for contract work are common. Mortgages can also cause encumbrances. Fortunately, you can file additional documents, such as a release of lien, to help resolve these situations.
Creating clear and accurate documentation, including deeds and titles, can help you avoid legal disputes regarding your property. Furthermore, you can take steps to solve issues and facilitate the process of buying and selling real estate.