• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Legal Templates

Legal Templates
  • Business Forms
    Business & Contracts

    All of our legal contracts and documents are drafted and regularly updated by attorneys licensed in their respective jurisdictions, paralegals, or subject matter experts. Save your hard-earned money and time with Legal Templates.

    Top Business Forms
    Business Formation
    • Business Plan
    • LLC Operating Agreement
    • Articles of Incorporation
    • Corporate Bylaws
    • Buy-Sell Agreement
    Business Operations
    • Business Contract
    • Partnership Agreement
    • Non-Disclosure Agreement
    • Release of Liability
    • Letter of Intent
    Sales and Payments
    • Purchase Agreement
    • Sales Agreement
    • Invoice
    • Purchase Order
    • Business Purchase
    Employment and HR
    • Employment Contract
    • Employment Offer
    • Employment Verification
    • Freelance Contract
    • Non-Compete Agreement
    View All Business Forms
  • Real Estate Forms
    Real Estate

    All of our legal contracts and documents are drafted and regularly updated by attorneys licensed in their respective jurisdictions, paralegals, or subject matter experts. Save your hard-earned money and time with Legal Templates.

    Top Real Estate Forms
    Landlords
    • Lease Agreement
    • Property Management
    • Eviction Notice
    • Late Rent Notice
    • Lease Termination
    Tenants
    • Room Rental
    • Sublease Agreement
    • Roommate Agreement
    • Notice to Vacate
    • Early Lease Termination
    Home Ownership
    • Real Estate Purchase Agreement
    • Mortgage Deed
    • Quitclaim Deed
    • Deed of Trust
    • Moving Checklist
    View all Real Estate Forms
  • Personal & Family Forms
    Personal and Family

    All of our legal contracts and documents are drafted and regularly updated by attorneys licensed in their respective jurisdictions, paralegals, or subject matter experts. Save your hard-earned money and time with Legal Templates.

    Top Personal and Family Forms
    Estate Planning
    • Power of Attorney
    • Last Will & Testament
    • Living Will
    • Advance Directive
    • DNR Form
    Personal Finance
    • Bill of Sale
    • Loan Agreement
    • Purchase Agreement
    • Promissory Note
    • Sales Agreement
    Family Matters
    • Parenting Plan
    • Child Travel Consent
    • Divorce Agreement
    • Separation Agreement
    • Prenuptial Agreement
    Affidavits
    • General Affidavit
    • Gift Affidavit
    • Affidavit of Identity
    • Affidavit of Residence
    • Affidavit of Death
    View All Personal Forms
  • Support
    Resources
    • Business
    • Real Estate
    • Personal and Family
    • Financial
    • Estate Planning
    Support
    • About Us
    • Careers
    • Contact Us
    • All Legal Documents

    Monday - Friday | 9AM - 7PM EDT

    (855) 335-9779

  • Sign In
  • :email

Home Resources Real Estate Deed vs Title

Deed vs Title: What is the Difference?

Don't be confused by deed and title jargon when transferring a home or other real estate. Our experts help you understand the difference.

Jana Freer

Updated December 20, 2022 | Written by Jana Freer

Understanding the difference between a home title and a property deed during the home-buying process is essential.

Most people assume titles and deeds are the same, but they are different.

A title proves legal ownership of real property, while a deed is a legal document that transfers the title from one person (the seller or property owner) to someone else (the buyer).

While both legal concepts are closely related, they’re distinct. To avoid unforeseen ownership problems as home buyers and feel more confident you’re the legal owner of your dream home, you must understand the differences.

Title to a property can be a condominium, townhouse, house title, or any other type of real estate.

Table of Contents
  • What is a Deed?
  • What is a Title?
  • Deed vs. Title: Understanding the Difference

What is a Deed?

Parties to real estate transactions use a deed to transfer ownership (property and title) and legal rights from the seller (grantor) to the buyer (grantee). The deed can be for a condominium, townhouse, or house.

All property deeds must contain the following elements to be considered legal, valid, and enforceable:

  • Language stating the grantor can legally transfer the property
  • Language stating the grantee can legally receive the property
  • An accurate written legal description of the property
  • The signatures of both the grantor and grantee

You must file the deed in the county courthouse, with the clerk, in the county assessors’ office or recorder’s office, or with the registrar where the property is located for the deed to be fully binding.

The three main different types of deeds related to property conveyance (real estate transfers) are general warranty, special warranty, and quitclaim deeds.

General Warranty Deed

warranty deed sample

A general warranty deed provides the most protection to grantees during a sale.

Each state has its own rules and regulations regarding how these deeds function, and it’s essential to research your individual state’s laws before signing.

In a general warranty deed, the grantor makes legally binding guarantees called covenants regarding the quality of the real estate title.

Because of these guarantees, warranty deeds are sometimes referred to as “full covenant and warranty deeds.”

There are four covenants that every general warranty deed should include:

  1. Covenant of Seisin: The grantor promises they have the legal right to convey, or transfer, the property.
  2. Covenant of Further Assurance: The grantor promises to provide all paperwork and documents necessary to validate the title.
  3. Covenant of Quiet Enjoyment: The grantor promises the grantee won’t be disturbed or removed from the home because of a discovered defect.
  4. Covenant Against Encumbrances: The grantor promises there are no liens or encumbrances against the property.

Special Warranty Deed

A special warranty deed, often used for or for commercial properties – or like a grant deed or bargain and sale deed (for sales following a foreclosure or tax sale), limits the title defect protection the grantee receives.

A grantor uses a special warranty deed, such as a grant deed or bargain and sale deed, to promise that no defects occurred when the grantor owned the property.

This means that the grantee is unprotected against problems that arose before the period of the grantor’s ownership. You’ll typically see special warranty deeds during bank foreclosures of residential property or commercial property transactions.

Quitclaim Deed

quitclaim deed template

A quitclaim deed, sometimes called a non-warranty deed, conveys the grantor’s title to the grantee without any warranties or promises.

As a result, it provides the least amount of protection to the grantee and is probably best used between family members.

If the grantor has clear title, then a quitclaim deed conveys the property as effectively as a general warranty deed.

However, if the grantor conveys a title with defects or problems, the grantee of a quitclaim deed has no protection or the ability to take legal action against the grantor.

This is why quitclaim deeds are most common in the following situations:

  • Between family members such as adding or removing a spouse, or
  • By grantors who want to fix defects, or
  • In official transactions like court and estate proceedings, mortgage defaults, and sheriff’s sales.

It’s also important to note the tax implications of using a quitclaim deed. Upon transferring ownership, the grantee must pay property taxes on the real estate from that date.

Additionally, some states may impose a transfer tax for quitclaim deeds based on a percentage of the amount paid to acquire the property (“consideration”).

Many states require you to file a deed in the assessor’s office for it to be valid.

IMPORTANT

Remember that there may be exemptions for the various taxes associated with quitclaim deeds, and you should consult a tax professional if you have any questions.

What is a Title?

A title is the legal right of ownership of a tangible asset like a home or car. Unlike a deed or a vehicle title, a property title is conceptual and isn’t a physical or legal document.

A title includes a series of benefits, known as a “bundle of rights,” often in a properly drafted deed.

As a homeowner with a valid deed, your bundle of rights includes the following:

  • The right of control: Your ability to use the property legally.
  • The right of disposition: Your right to permanently or temporarily transfer ownership of the property as long there are no loans, liens, or other encumbrances.
  • The right of enjoyment: Your right to enjoy the property in any lawful manner. (This is distinct from the right of control.)
  • The right of exclusion: Your right to choose who is allowed on the property.
  • The right of possession: Your legal right to claim property ownership.

A single individual or multiple individuals/entities, such as a married couple or a corporation, can possess title to a property.

The title must be clear to transfer a property from the grantor to the grantee. A clear title is free of undisputed claims of ownership, which means it doesn’t have debts, liens, back taxes, or other creditor claims.

Many property transfers involve an Affidavit of Title, which is a form grantors use to swear they own title to a piece of real estate.

TIP

To protect yourself against these risks, you should purchase owner’s title insurance and perform a title search if you consider buying a property.

Title Insurance

Title insurance protects grantees from hidden or unknown defects or encumbrances (like liens from bankruptcies, past due child support payments, and unpaid contractor work).

The grantee typically purchases it for a one-time cost before the property sale.

Unlike other insurance policies that protect against future events, title insurance offers protection against past events that blemished the real estate title.

Many potential issues can make a title “cloudy,” including the following:

  • Ownership or disputed ownership by another party
  • Judgments against the property, like lawsuits or mechanic’s liens
  • Forgery and fraud
  • Unresolved building code violations
  • Back taxes

In addition to the standard form of insurance the buyer purchases, sellers can buy an owner’s policy for extra coverage.

The property seller purchases an owner’s title insurance policy as another layer of protection against potential problems that appear during a title search or if someone attempts to sue the property owner, stating they have a claim to ownership.

Banks and other lending institutions often require a mortgage lender’s title insurance on a property before it will allow the closing of a loan and escrow.

Title Search

Title insurance covers the cost of a deep title search performed by a real estate attorney or title company.

Experts carefully examine all public records and legal documents during this search and create a title abstract based on data collection to identify potential title defects, claims, and disputes.

If a search identifies any problems (cloudy and not clear title), the grantor is responsible for resolving the issues before the sale occurs.

Deed vs. Title: Understanding the Difference

In essence, a title is a right to legal ownership of a property and the deed (house deed or property deed) is the document to transfer title (and the property) from one owner to the next.

A property title must be carefully examined and protected because any defect or unresolved problem can render it invalid.

It’s also essential to select the correct type of property deed and draft it carefully to ensure the legal transfer of ownership from the grantor to the grantee.

Remember that title is not a document on file in the public record but rather a legal term used to refer to the concept of property ownership. 

Buyers can rest easier with their home purchase and enjoy their new property without fearing future complex legal issues if all parties understand these terms and execute these legal documents properly.

Find out more about deeds and titles by reviewing our forms and checking out our document builder.

Jana Freer

Jana Freer

Real Estate Editor

Jana Freer is a Real Estate Editor with Legal Templates, where she creates and edits legal form descriptions and articles to help landlords and tenants better understand real estate processes. She...

Related Articles

  • Should I Sell or Rent My House?
  • 6 Types of Deeds Used to Transfer Ownership
  • What is a Quitclaim Deed?

In This Article

  • What is a Deed?
  • What is a Title?
  • Deed vs. Title: Understanding the Difference
Legal Documents
  • All Legal Forms
  • Business Forms
  • Real Estate Forms
  • Personal and Family Forms
Popular Forms
  • Lease Agreements
  • Power of Attorney Forms
  • Eviction Notice
  • Living Will
  • Non-Disclosure Agreement
Resources
  • Legal Resources
  • Business
  • Real Estate
  • Personal & Family
  • Estate Planning
  • Financial
Company
  • Pricing
  • About Us
  • Careers
  • Contact Us
  • Partner With Us
Users
  • Account
  • Terms of Use
  • Privacy Policy
  • Do Not Sell My Personal Information
McAfee - Together is power.
Trustpilot
BBB Accredited Business

(855) 335-9779, Monday-Friday, 9AM - 7PM EDT

Facebook Twitter LinkedIn youtube Youtube

Copyright 2023 Legal Templates LLC. Legal Templates LLC is not a lawyer, or a law firm and does not engage in the practice of law. Legal Templates cannot and does not provide legal advice or legal representation. All information, software and services provided on the site are for informational purposes and self-help only and are not intended to be a substitute for a lawyer or professional legal advice. Use of this site is subject to our Terms of Use. Legaltemplates.net is owned and operated by Resume Technologies Limited, London with offices in London United Kingdom.”

Thank you for downloading one of our free legal templates!

Would you leave us a review?

We hope you've found what you need and can avoid the time, costs, and stress associated with dealing with a lawyer.

A review would mean the world to us (it only takes about 15 seconds).

Please check your download folder for MS Word or open tabs for PDF so you can access your FREE Legal Template Sample

Thanks again, and good luck!

Leave My Review