Property Deed – Why It’s Important When Selling or Buying a House

The real estate world is filled with tons of jargon. But one term we’re all familiar with is the idea of a deed for a home. But what exactly is a deed? 

Well, in short, this piece of paper is incredibly important. It’s vital to the whole home selling and buying process. For both parties involved in the whole real estate transaction, it all rotates around this document. 

Before we go any further let’s investigate what exactly a title deed is.

What is a Real Estate Deed?

If you were wondering and typed into Google, “What is the document that changes ownership from the seller to buyer and vice versa?” The short answer is that the document you’re looking for is a house deed.  

When you want to transfer ownership, you need the physical document, which indicates who owns the property, or who the new owner is. It indicates who owns the estate or has interests in the property. 

This document will lay out a description of the property, and it will identify who the grantor (seller) and the grantee (buyer) are for the transfer. 

For the deal to be closed, both parties need to sign the property deed. The parties signing this document need to be of lawful age as the land will be transferred from one legal adult to another. 

As the deed is an actual piece of paper, the new owner will take possession of the document at the time the home is sold, meaning they now own the home or have the deed to the property.  

Also, a county clerk may refuse a real estate deed for recordation if it does not contain the original signatures of the grantor and grantee. 

There are a number of types of deeds. These include:

General Warranty Deed

Arguably the most commonly used deed in the traditional home sales process, that provides the best protection for the individuals buying the home. It means the owner will have a clear title and the right to sell the property, as well as having no knowledge of any hidden issues that might pop up on the title for the life of the property. It also says that no one else has the rights to the house and the property. 

Special Warranty Deed 

Similar to the general warranty deed, but with one difference: it only guarantees the clear title status for the time the homeowner owns the house. This is used not for private homes, but in commercial real estate deals, and can also be referred to as a Covenant Deed. 

Grant Deed 

A Grant Deed is like the usual warranty deed, which shows that the owner of the home has a clear title to sell, and no knowledge of anything that might affect the transfer of the title. But it doesn’t include the warranty that you’ll defend the title against other people who may end up having claims to it after the sale of the house takes place. 

Quitclaim Deed 

This type of deed offers the least amount of protection for a buyer of the home. A Quitclaim deed is usually used when someone is trying to give the home to someone else. In a Quitclaim deed, the owner transfers rights of ownership to the reciprocate, but without any guarantees that the seller is actually in the position to do so. This seller may not be legally allowed to gift/sell the house, but the giftee wouldn’t be able to take any action against them after the fact if this was the case. 

Bargain and Sale Deed 

This type of deed is used if your home is being sold in a tax sale or foreclosure of the property. A bargain and sale deed means that the seller doesn’t need a clear title and there are no protections for the buyer. 

When someone files with this document, there are liens on the property. They stay with it after the sale, and the buyer will be responsible for cleaning everything up after they’ve taken possession of the house. 

So, now we fully understand the specific types of deeds. But there are some reading this wondering how a title works its way into the process? 

But let’s define the difference between title and deed.

Deed vs. Title 

What is the difference between title and deed? To answer this in the simplest terms, a title is simply the legal term that refers to your ownership of something. If you’re still wondering, “Is a deed the same as a title”, an easy example to compare it to is securing a job. You say you have a job title. This isn’t an actual contract. 

A title gives you the right to live at the property as you see fit. There is no real paper trail, other than the deed. 

If this doesn’t seem like a concrete basis for claiming ownership of a home, know that the ways you hold a title are just the manner in which you’re given possession of a “bundle of rights” to a property that, if you sell, will get transferred from the seller (you) to the buyer. 

These rights include: 

• The right of possession, which says that you own the property. 

• Your right of control, so you can use this property as you please, as long as you don’t break any laws.

• The right of exclusion gives you the right to ask unwanted guests to leave your property.

• Your right to enjoy the land, or your right to perform activities on the property, as long as they are legal. 

• And finally, your right of disposition. This right gives you the power to sell off the home as you see fit, as well as the right to transfer ownership to whoever you see fit. 

While at first glance this may seem like as soon as you “take the title” on the home you own it, and also that the title gives you, the owner, the legal right to go ahead and sell it off in the future: It’s not that simple. 

The manner in which the title will be held can differ. A “clear title” means you, as the owner, don’t owe anyone money, or that your house is free of any mountains of debt, defects, judgments, or bankruptcies. 

Buyers of homes and their financial lenders will want to know if the home has a clear title. Because if they close on the deal with these aforementioned IOUs attached to the property, they may need the assistance of lawyers to break apart the tied debts. Which is bound to add to those closing costs for the buyer and seller. 

There are a number of usual defects or issues on titles, some of which include:

• Contractor liens put against your house for the kitchen remodel

• Improper title transfers due to a past paperwork error

• Unpaid taxes

• Bankruptcy filings

• Outstanding child support 

• And boundary encroachments 

There are many more, but this means, even as a seller, you should make sure you have a clear title before listing your home. 

However, if you are selling to a buyer needing financial help from a bank, you will be required to produce a clear title, or marketable title, to transfer to the buyer. If you can’t, the sale will come to a grinding halt.  

In short, if you have a clear title, and the piece of paper that is the deed, you can answer your pleas of, “Sell my home”.

But what if you’re struggling to find someone willing to take ownership of your deed, and want someone to answer your cries of, “Sell my house now”? 

You can always sell your home to House Buyers of America for cash! But why would you choose us from all the other cash home buyer services?

Why Trust House Buyers of America to Buy Your Home? 

Since 2001, House Buyers of America has bought and sold homes in Maryland, Virginia, and Washington, DC. During this time we’ve innovated the real estate game, as well as impressed thousands of customers. It’s this longevity and success that sets us apart. 

And if you don’t trust us, you can trust our hundreds of references. Not many companies in our industry are as well respected as House Buyers of America. 

Currently, we have over 100 reviews with 5 stars
with testimonies from a select few! Most of these reviews highlight that House Buyers of America will: 

• Sell houses fast

• Pay cash for homes

• Treat you with the utmost respect

House Buyers of America has also earned an A+ rating with the Better Business Bureau (BBB), which is an organization that helps United States consumers find businesses they can trust. 

But it’s our positive rating on Facebook and Google we’re most proud of, with hundreds of positive reviews. 

When you’re selling your home, you want to be 100% sure that you can trust the company you’ve contracted to help you. And nothing will put your mind at ease more than reading our clients’ reviews of our services. 

And because our clients have spoken about us with such fondness, we’ve been asked to contribute thought leader comments to various publications. 

Submitting our professional opinion to America’s most trusted media outlets, like: 

• USA Today

• The Wall Street Journal  

• CBS News

• ABC

• NBC

• And Fox

But how does House Buyers of America work? 

How House Buyers of America Works

We’ve ensured that every step is simple, quick, and efficient. That’s why our first step is you approaching us. Simply give us a call at 855-659-3289 or use our online form to get started!

Within 10 minutes, if the call is made during office hours, we will have a fair cash offer for your property. 

Once we’ve gathered your information, we will arrange a time for us to come by the house to finalize that important paperwork. 

And once you’ve signed on the dotted line, the money will be in your bank account in a matter of days. It’s never been easier to sell your house fast.