When buying or selling a home, you’ll hear the terms title and deed used frequently. While they are closely related, they are not the same. Understanding the difference is crucial for any homeowner or buyer.

What Is a Title?

A title refers to the legal right to own and use a property. It establishes who has ownership and who has the legal authority to sell, transfer, or modify the property. Think of a title as the concept of ownership, rather than a physical document.

Having a clear title is essential in real estate transactions. Issues like unpaid liens, disputes over ownership, or clerical errors in past transactions can create title problems that must be resolved before the property can legally change hands.

What Is a Deed?

A deed is the physical document that transfers ownership of the property from one party to another. It serves as legal proof of the transfer and must be signed, notarized, and recorded with the county to be valid.

There are different types of deeds, including:

• General Warranty Deed – Provides the highest level of protection for the buyer, guaranteeing a clear title.

• Special Warranty Deed – Guarantees that the seller has not encumbered the title during their ownership but does not protect against prior claims.

• Quitclaim Deed – Transfers the seller’s interest in the property without guarantees about the title’s condition.

Why Does the Difference Matter?

Although the title confirms ownership rights, it’s the deed that officially transfers those rights. This distinction matters because a homebuyer does not officially own a property until the deed is signed and recorded. However, even with a deed in hand, issues with the title—such as liens or ownership disputes—can affect the buyer’s ability to fully claim the property.

Protecting Your Ownership

To ensure a smooth transaction, it’s important to work with a title company that will conduct a title search and issue title insurance to protect against any unforeseen claims or defects in ownership history. Title insurance gives both buyers and lenders peace of mind that the property’s title is clear and legally valid.

Final Thoughts

A title defines who owns the property, while a deed is the legal document that transfers ownership. Both are essential in real estate transactions, and understanding their differences can help buyers and sellers avoid complications down the road.

If you have questions about title vs. deed or need guidance in your home-buying journey, Great Move Realty is here to help! Contact us today for expert advice and assistance.