They may seem like similar topics, and they are. However, there are key differences, which are important to know. A property deed and a property title, although similar, both have separate functions in the real estate world. The question is, do you know these differences? If not, that’s okay, we’ll go over them here so you can be informed on important real estate lingo.
Think of a property title as a mental concept or idea. A title is not a physical document, but rather a state of being. So, although you own a property title, it is not a written thing. You can have full ownership or partial ownership of a title, depending on the situation. Regardless, the title allows you access to the property. A property title is the mental representation of your property. But it’s important to have written ownership as well, so you can transfer the property (or which part of it you own) when you desire.
Also known as the vehicle of the property interest transfer, the property deed is the written document used to transfer a title. It needs to be recorded and handled in a courthouse as an official record.
There are a few different types of property deed. One common type is a quit claim deed. These are used when the parties all trust and know each other. It’s a quick and easy way to transfer a property title, but without warranties on it. However, when transferring to someone like family, it’s a popular option when there’s trust that the title is good.
On the other hand, a warranty property deed is used when transferring a title to a stranger or someone who requires warranty. It transfers the property title, as well as promises the title is good and legal, or else the party transferring the title will take responsibility in paying for it.
About Colony Title Associates:
Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings in Washington DC and the Delmarva area every year. The founder Tee Tillman has over 23 years of experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the Baltimore area. If you have any questions concerning issues that Baltimore title insurance protects you from, feel free to contact us at 410 884-1160 or visit ColonyTitle.com today!