The Differences Between a Property Deed and a Property Title

Purchasing a home in Columbus is probably the largest investment many people will make in their lifetime. This huge life-altering purchase should not be taken lightly and the best purchases are made when Columbus buyers are as knowledgeable as possible about the process.

Many things that are good to know about the home-buying process. One important thing is to know the different aspects of the purchase and the documents that come with finalizing the sale. Two important documents in a home sale transaction are the property deed and the title.

The property deed

The property deed is a document that records and provides proof of a change of ownership through the sale of a property. It is physical proof that a home has been sold into new legal ownership. On the deed, both the names of the selling party and the buying party will be written. The deed will need to have at least the signature of the seller to confirm that ownership has changed hands. In some states, it is required that both a signature from the buyer and the seller be present on the deed.

A property deed is filed as a public record with the city, county, or state and is accessible through online searches and at the local tax assessor's office. In some areas, a deed may be considered valid even if it is not filed as a public record.

The property title

A title is not a document proving anything but an actual right to ownership. A title gives proof as to who has the power to transfer ownership of the property and who has the power to use the property. The title is ownership in itself. Because of this title insurance is a smart purchase to help the new owner protect against any claims brought against the property by other parties.

A challenge to a property title can be brought by several different claimants including a lien holder for unpaid work or property taxes or an unpaid mortgage. It could also come from a relative of a deceased previous owner that claims to have inherited the property. It could also come from a place of fraud. Before the closing on a real estate purchase, a title insurance company will search the property's history to ensure all claims have been resolved for ownership.

There can be different types of deeds on a property

The most common types of deeds on property include a general warranty deed, a special warranty deed or grant deed, a quit claim deed, and a bargain and sale deed.

A general warranty deed is the most common deed used in home sale transactions. It provides the highest level of protection to a home buyer. Title companies will use a general warranty deed when they are able to confirm ownership of the property is free and clear of any discrepancies that would cause title issues. It proves to the buyer that the seller has full legal rights to sell the property as the correct and proper owner.

It is a good idea for a home buyer in Columbus to know what type of deed is being included in their home sale to ensure that they are able to take on ownership of their new home without any problems. In some cases, the property deed may not fully back up the title and may not ensure there will be no issues with title discrepancies. As a Columbus home buyer, you want to make sure that you are purchasing a property that comes with a general warranty deed and a proper title.

For more information on purchasing a home in Columbus and surrounding areas please contact us anytime.