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Understanding deeds and the different kinds that exist is essential for anyone involved in a residential or commercial real estate transaction. In Florida, a deed is the title to your property and represents ownership of that property. In a real estate transaction, the buyer and the seller use the deed to transfer the title of the property. There are also many different types of deeds, so it is important to make sure you have a knowledgeable attorney who understands your wishes and drafts the deed accordingly to provide the best protection for you as a homeowner.
Title search companies examine the property ownership and identify any liens, encumbrances, or other matters, called “clouds on title,” that could affect the title to the property. Title Agents review deeds to verify ownership and consider other factors that may impact the transaction, such as an outstanding mortgage, a judgment, or a lien on the property.
A Coral Gables title and deed lawyer could ensure that deeds accurately reflect the title, identify any liens or encumbrances on the property, and help a person navigate a real estate transaction. A committed real estate attorney could answer any questions you may have and protect your rights throughout the transaction process.
Deeds are your title to the property and is a legal document that transfers property ownership from one person to another. After a real estate purchase, the title agent, or the real estate attorney handling the title, records the deeds with their local government, making them public records. In Florida, the local county clerk’s office handles real estate deeds, and it is the property owner’s responsibility to ensure that the deed is filed after the purchase. This is the role of the real estate attorney after closing.
For a deed to be valid, it must include the name of the grantor (often the seller) and the grantee (typically the purchaser). The deed must also describe the property and include two witnesses and a notary. Many counties now also require each witness to include their property address under their signature – the recorder’s office will not accept or record the deed without it.
In addition to traditional deeds that are commonly involved in property sales, there are other deeds that can impact property ownership, such as deeds in lieu of foreclosure, gift deeds, and tax deeds. A Coral Gables property title and deed lawyer could draft these deeds for property transfers.
The words deed and title can be used interchangeably. Each signifies ownership of the property. There are different manners to hold title, such as:
The most common type of deed is the general warranty deed. When this deed is used, it confirms that the real estate attorney acting as title agent has examined the title and cleared any clouds or title defects, ensuring that the title is provided to the buyer free and clear, and there are no title defects, undisclosed liens, or encumbrances on the property.
A special warranty deed is similar to a general warranty deed but with an important difference. In a special warranty deed, the seller only guarantees that the property was in good condition during their time of ownership. They cannot guarantee anything about the property’s condition before they acquired it.
A quit claim deed is the most common way to transfer ownership between related parties, divorce, or any party that wishes to get rid of their ownership rights without a closing. It is best prepared by an attorney and does require that documentary stamp taxes be paid on the transfer, which many attorneys fail to advise their clients.
A Coral Gables attorney could explain the different types of deeds to individuals and help them choose the right title and deed for their specific needs.
A Life Estate Deed is the most common way to avoid having to probate a property after the death of a parent or family member. With this type of deed, the grantor is permitted to use the property during their life and designate a beneficiary or “remainderman” who will be the new title owner at the time of their death.
A Lady Bird deed, or enhanced life estate, has similar benefits to a standard life estate deed but where the grantor is permitted to live on it during his or her life and name the beneficiary; however, it has one critical difference. The owner may still sell, lease, or mortgage the property while they are alive. They can also cancel the deed altogether. Therefore, the property owner maintains fundamental control over the property while allowing their beneficiaries to avoid probate.
A knowledgeable Coral Gables lawyer could ensure that a person’s wishes are clearly documented and that a title and deed meet all legal requirements.
Not all deeds hold the same value. Some deeds may solely describe the current owner’s interest, which can leave grantees vulnerable to risks. Conversely, owners without a clear title history may find themselves stuck with property without access to alternative deed options. To understand more about these concepts, talk to a Coral Gables title and deed lawyer today.
Jacqueline A. Salcines
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