Deed

A deed is a legal document that confirms the transfer of ownership of an asset. It is a binding document in courts of law and is later filed in the public record of a local government. At the time of signing, a deed will need to be notarized and some states in the United States require witnesses. Deeds are commonly used today in car and property transactions.

There are a few different types of deeds that offer varying levels of protection for the buyer and obligations from the seller. Common forms of deeds include grant deeds, warranty deeds, and quitclaim deeds.

In a property deed, both the buyer and seller need to be named, a description of the property is required, and signatures of both parties. While somewhat similar, a deed is should not be confused with a title. Instead, it should instead be seen as the way to transfer a title.

Generally, a buyer’s legal representative or title company will handle issues related to the deed at the time of the closing date.

If there is an issue with the notarization or filing of a deed it may be open to lawsuits or delays. It may cause a deed to be considered an unrecorded deed. Unrecorded deeds could cause a flurry of issues and may also cause tax implications. This includes difficulty in receiving a home loan, insuring the property, and selling the property of course.

A deed may be considered void in cases if one of the parties is found mentally incompetent, a minor or had their signature forged.