The Home Buyer’s Guide To House Deeds

There’s a lot of paperwork created when selling or buying a home, including the house deed. Also known as a property deed, a house deed is a legal document that plays an important role in any home sale.

Read on to learn more about what a house deed is, the information it contains, the types of house deeds you might run into and how to find yours.

What Is A Deed To A House?

A house deed – or property deed – is a legal document that transfers ownership of real property from the grantor (seller) to the grantee (buyer). A house deed is a legal tool used to define homeownership. When a property is sold, the buyer and seller sign the deed to transfer ownership.

A home’s deed must accompany every purchase of a property. It must be completed, notarized and filed on public record to be legally valid. This home buying document contains a detailed description of the property. Specifically, it contains the property lines and who the property belongs to.

Comparing A House Deed Vs. Title

Two important terms with similar meanings are house deed and title. Both have to do with ownership but differ in a few ways. Let’s take a look at some of these differences below.

When you own a home, you own both the deed and title for that property. To hold title means you have ownership and a right to use the property. Titles are concepts rather than physical documents. The deed, alternatively, is the physical document that legally transfers ownership. It shows who you bought your house from, and when you sell it, it shows who you sold it to.

What Does A House Deed Look Like?

There’s no one-size-fits-all template for a property deed, but it must be a physical written document. Specific requirements vary by state, but many property deeds contain similar info. Here is some common information found in a house deed:

• Names and addresses: The grantor (seller) and grantee (buyer) list their names and addresses for further contact.
• Description of the property: This is the legal description of exact property boundaries, referencing common points like roads and sewer lines.
• Signature of the grantee: The grantee must sign their full name and it must be consistent with the grantee name listed in other documentation.
• Words of conveyance or granting clause: This clause transfers ownership to the grantee. It lays out the grantee’s rights and if any other people are also claiming title.
• Consideration clause: The deed contains a clause stating the grantor received something in return for the property. This is usually money, and the amount must be listed here. It’s common and acceptable in some areas to obfuscate the amount paid. If the property was gifted, a phrase like “for love and affection” is often used.

Additional common information depends on the type of property. If the house is in a plotted subdivision, the property deed will contain the name and details of the plot. There also may be listings of conditions or reservations that go along with the property transfer.

Types Of House Deeds

There are several types of house deeds – the differences between each type come down to the covenants and warranties conveyed by the seller. Some property deeds offer more protections to the grantor, and others favor the seller. Depending on the state of the property, the title and any real estate encumbrances, different deeds protect against different potential issues.

General Warranty Deed

A general warranty deed promises the grantor has complete legal ownership of the property. With a general warranty deed, the property is free and clear of any liens, debts or encumbrances. The grantor claims to have complete ownership before transferring it. This makes a general warranty deed the safest type of deed for the grantee.

A general warranty deed gives warranty of title. It conveys title to the grantee and assures the title is the most superior claim on the rights to the property. It also gives warranty against encumbrances by stating the only mortgages, liens or easements are those listed in the deed. This makes the grantee fully aware of what they’re getting when they buy the house.

If defects to the title come to light, the general warranty deed allows the grantee to sue the grantor for damages. The grantor is also liable for any unstated encumbrances found after the conveyance of property. This layer of protection assures the grantee that all rights and possible debts on the property are in order. It also assures that the grantor must fix any problems that arise.

Special Warranty Deed

A special warranty deed isn’t higher in providing security for home buyers than a general warranty deed. Special warranty deeds, in fact, offer less protection to the buyer. This type of deed only guarantees the property wasn’t encumbered while the seller had ownership. This means there could be encumbrances (liens, mortgages, easements, etc.) from previous property owners.

A special warranty deed is frequently conveyed with the phrase, “Grantor remises, releases, alienates and conveys.” With a special warranty, the grantor is not obligated to address any title defects from before they owned the property. The grantor’s only on the hook for what occurred during their time of ownership.

Special warranty deeds are typically used by temporary owners who don’t occupy the land. Trusts, business managers, banks and associations often use special warranty deeds to avoid liability. With a specialty warranty deed, they don’t have to worry about title defects or encumbrances leftover from when they seized the property.

Quitclaim Deed

Unlike general and special warranty deeds, quitclaim deeds carry no warranty at all. They only convey the interest the grantor had in the house. They may convey the full title, but nothing is guaranteed. There’s no protection for the grantee and no liability for the grantor.

In the past, quitclaim deeds were used on unexplored and unclaimed land. They’re fast and efficient, but if there’s a title defect, the grantee has no legal recourse against the grantor. However, they can still be used to amend defects efficiently. After the title is established, a general or special warranty deed can be issued to address transfer of ownership and purchase of the property.

Special Purpose Deed

Special purpose deeds are types of property deeds typically used in court or with a person acting in an official capacity. In general, they offer no real protection to the grantee and are used only in specific circumstances. Here are some of the most common special purpose deeds:

• Tax deed: A tax deed grants ownership of the property to the government when property taxes aren’t paid. The government then auctions off the property to cover the unpaid taxes.
• Deed in lieu of foreclosure: To avoid foreclosure proceedings on an unpaid mortgage, the borrower conveys the property to the bank or lender using a deed in lieu of foreclosure.
• Deed of gift: Just as it sounds, a deed of gift is used to transfer ownership without compensation from one person or institution to another.
• Sheriff’s deed: Similar to a tax deed, this type of deed conveys ownership to a buyer at a sheriff’s sale. The sale of the deed goes toward paying a court judgment against the property owner.
• Executor’s deed: This deed is used when someone dies with a will. The estate executor uses this deed to convey title or property to the grantee stated in the will.
• Administrator’s deed: When someone dies without a will, a court appoints an administrator who uses this deed to convey title or property to a grantee.

Can You Make Changes To Your Home’s Deed?

Even after ownership of a property has been transferred, you may need to make changes to the property deed. You might need to add or remove a homeowner, change your name or update a clerical error within the documentation.

The regulations around making changes to your house deed can vary by state. If you need to update information on a house deed, you’ll usually need to visit the county recorder’s office. You might need to record a new property deed, and there could be fees involved.

If you’re unsure whether you need to change your house deed, consult a county or real estate attorney for assistance. 

How To Get The Deed To Your House

When you buy a house, you receive the property deed when you’re transferred the title from the previous homeowner. Then, it’s your responsibility to keep the copy of the house deed. If you’ve misplaced it or need a new copy for any reason, you can contact the county recorder’s office.  

The Bottom Line: You Need A Home’s Deed To Buy Or Sell It

House deeds vary depending on the property being conveyed. When shopping for homes, the kind of deed offered can tell you about the property. General warranty deeds offer the most protection for buyers. Alternatively, quitclaim deeds offer the least protection for buyers, and come with no liability for sellers. No matter what, you need a property deed to buy or sell a house.

Both the buyer and seller should know what protections a deed grants them before signing or transferring.

If you’re ready to buy or sell a home, apply for approval online today.