How to Transfer a Real Estate Deed or Property Deed Transfer? Types, Steps, Mistakes to Avoid: Real estate in the U.S. has a lengthy and important past. It is necessary to register or document all assets in the United States. The office of the County Recorder maintains these files. They are a public record, and anyone who wants information can get them. It also means that you have to change the official documents to reflect the transfer when transferring property from one owner to the next. If you don’t record the required documents correctly, it invalidates the transfer.
Deeds over rights to property occurs often enough and the whole process requires a sound understanding of Real estate property deed. A standard form deed must purport all the essentials needed for its validity, including a vivid description of the property. Before delivering or accepting a deed, the Grantor and Grantee should have adequate knowledge of the legal language used in the deed to describe the transfer of the property, the contract should have effectual words of the transfer.
There are various deeds, these include:
- Quitclaim deed
• Warranty deed
• Bargain or sale deed
- Special warranty deed
• Grant deed
They all provide different levels of title. The deed right for a property transfer will vary based on the deed-title and how the transaction occurred.
Property Deed Transfer
A property deed is a formal written and signed, a legal document that is used to pass ownership of real property from one individual to another. From the seller (grantor) to the Buyer (grantee).
Invariably, deeds are used to do real estate transactions. In it, there’s an elaborate description of a property traded and the parties involved in the trade.
There are different types of deeds, and each type mirrors the title transfer process. It must declare itself with an accurate description of the property, reflect the signatories to the transfer and provide adequate information on who is relinquishing the property and who is taking title to it. Different deeds safeguard the interest of the grantee and outline the obligations of a grantor differently.
In transferring property without difficulties or complications, take certain cautious steps.
- Before drawing out the deed-contract, they hold a meeting between the old owner and the new owner (s). Here, they iron out issues regarding the new title. If an individual buys the property or if it’s more than one person, i.e. a tenancy in common or a joint tenancy, they should declare it at the meeting to determine the appropriate form of transfer.
• A competent attorney is indispensable in transferring property because accuracy is one feature of a deed. He’ll take charge of translating the desires of both grantor and grantee into the actual, usually a deed. He’ll give an accurate description of the property and detailed background information of the Seller and Buyer. He’ll determine the appropriate form of the deed for the transaction, outline the new title as joint tenancy or tenancy in common, and decide who will sign. Deeds require little information, the document itself is often very precise. But, the document may also encompass information on conditions or assurances that go along with the transfer. You must hand over each deed to the individual taking ownership of the property.
• After we draw the deed, engage in an overview; to note and correct errors. You should ensure all descriptions are standard and also ensure that you don’t omit legal names and addresses of the grantor and grantee.
• Following this, sign the deed in front of a lawyer and witnesses. Then they should notarize and seal it. They will commit the deed officially to Public records.
• As a final process in the property transfer, send the deed to the local county recorder’s office for filling. This might attract a small fee. Note, this is a crucial step, failure to record the deed may question genuineness and cause complications that’ll attract a fee levied as a punishment.
Transfer of Title from Parent to Child.
Perhaps you’re planning to sign your property in your child’s name. Estate planning becomes an increasingly common issue as house price rises. As a household owner, you can, even if you live there, give your property to your child, at any time.
The title of the deed outlines the transfer of ownership from a parent to a child, using a quitclaim deed.
A deed is relatively different from a title. While a deed is a document detailing the transaction, a title shows legal rights to ownership of property.
A quitclaim deed is more often used for transferring property in a family. It only carries the interest of the property owner and transferring this interest to the new owner without warranties.
In using a quitclaim deed to transfer property from a parent to a child, the steps explained above on how you can transfer property. In the deed, state if the child buys the property or is a gift from the parent to the child.
Mistakes to Avoid While Writing Real Estate Deed or Property Deeds?
Real Estate Deeds are lengthy documents and can be tedious to organize and go through. But due to the nature of the business they refer to, there is no detail you can leave unturned with these deeds. Even a single mistake has consequences, both on economic and legal grounds.
So how do you ensure you a real estate deed or property deed does not leave you in a pickle? Through the study of past deeds, some mistakes tend to make an appearance more than others. The foremost thing to watch for are these mistakes that other people make. Once you get past the basics, you can focus more on the details of the deed, and ensure everything is up to standard and correctness.
The common mistakes to avoid while setting up a real estate deed or property deed are:
Legal Description Error
A real estate deed refers to a property through an address and a legal description. The correctness of both parts is equally important. More often than not, there are no issues with the property address in a deed, but the same does not hold for legal descriptions.
Every single detail of the legal description must be accurate towards the property. You must pay special attention to all the words and numbers in this section to ensure none of it is incorrect. But this does not mean you can get away with a short legal description. It must provide the necessary details of the property, and insufficient information can cause a lot of controversy. As such, double-check the legal description of your property deed for all details.
Error in Party Names
Most real estate deeds involve more than a single individual, referred to as a party in the contract. The correctness of the names of all parties is essential to a real estate deed. But a lot of times, these names get recorded wrongly due to hastiness or carelessness.
Make sure you check the names of all parties so that there are no misspellings or omissions in them. It takes very little time to do this at the making of the deed. But once recorded, it is an understatement to call it a hassle to correct it later.
Incorrect or No Consideration Amounts
The consideration amounts or contingencies is a vital part of a real estate deed. They help process deals much more efficiently and avoid inconveniences in case a deal falls through. One type of consideration amount is a loan contingency, which states the legal terms of a loan deal.
Stating the consideration amounts is a must for property deeds. Without them, you will find it tough to conduct business seamlessly.
No Notary Stamp or Effective Date
A notary stamp is an official seal on your real estate deed that gives it recognition as a legal document. It is a necessity of the contract, without which it has no value. Even so, quite a few property deed makers forget this all-important stamp. You must make sure not to forget a detail as crucial as this one.
Another part of the deed that is often left empty is the effective date, which marks the time the contract starts to take effect. Whether you are contracting a property or passing it over to new owners, always include a date that marks the change in its ownership.
Conclusion – Mistakes to Avoid
Almost all real estate deeds involve an agent at some stage, who prepares the contracts for all parties. But it is not enough to leave all the details to this third-party personnel. You should always look through the deed to ensure all its sections are up to scratch.