What Is A Property Deed And What's In It?

A proeprty deed is a legal document that shows and transfers change of ownership, listing the Grantor and Grantee of property rights. After being recorded at the public records office of it's respective location, it becomes official record. 

Elements of a Deed: 

  1. Grantor and Grantee: 

    • Grantor: The person or entity transferring the property (the seller). 
    • Grantee: The person or entity receiving the property (the buyer). 
  2. Property Description: 

    • A precise legal description of the property being transferred. This usually includes details such as boundaries, lot number, and location; ensuring there is no ambiguity about the lot or space being conveyed. 
  3. Consideration: 
    • The amount of money or other value exchanged for the property. Sometimes the consideration is nominal (eg: "$1 and other consideration") to maintain privacy about the actual sale price, but may be some other factor. 
  4. Granting Clause: 

    • The clause that formally transfers ownership from the grantor to the grantee; where the grantor expresses their intent to transfer the property. 
  5. Habendum Clause: 

    • Defines the extent of ownership being granted to the grantee. Eg: the transfer is for a fee simple (complete ownership) or a life estate (ownership for the duration of a person's life). 
  6. Covenants or Warranties: 

    • Some deeds include covenants (promises) or warranties. The grantor assures the grantee that the title is clear of certain encumbrances and has the right to transfer the property. 
  7. Signatures: 

    • The grantor must sign the deed for it to be valid. In some cases, the grantee's signature is also required. 
  8. Notarization and Witnesses: 

    • Nearly always a deed must be notarized. And in some jurisdictions it must be witnessed to be legally binding. This adds credence to the authenticity of the grantor's signature. 
  9. Recording: 

    • After the deed is signed and notarized, it is typically recorded in the county (parish in Louisiana, and borough in Alaska) or municipal records office (sometimes a city municipality) where the property is located. Recording the deed provides public notice of the transfer and helps protect the grantee's ownership rights. 

Deed Types: 

  1. Warranty Deed: 

    • This offers the most protection to the grantee, as the grantor guarantees that they hold clear title to the property and have the right to transfer it. The grantor also warrants there are no hidden encumbrances or claims on the property. 
  2. Quitclaim Deed: 

    • Transfers whatever interest the grantor may have in the property without any warranties or guarantees. It offers the least protection to the grantee, as the grantor makes no promises about the quality of the title or if they even own the property. 
  3. Special Warranty Deed: 

    • Provides some protection, as the grantor guarantees that they have not done anything to encumber the title during their ownership, but makes no guarantees about any prior owners. 
  4. Grant Deed: 

    • Common in some states, this deed assures the grantee that the property has not been sold to someone else, and that the property is free of any encumbrances made by the grantor. 

Significance of Deeds: 

  • Legal Transfer of Ownership: 

    The deed is the essential document that legally transfers ownership of the property from the seller to the buyer. 
  • Public Record: 

    Recording the deed provides public notice of the transfer, protecting the grantee's ownership rights and helping to prevent future disputes over ownership. 
  • Proof of Ownership: 

    The grantee holds the deed as evidence that they are the legal owner of the property. 

To get more answers and a quote for property title search, call 1-877-848-5337.

What info is in a deed?

Difference between a deed and title.

Is there a separate house deed?

What information is not on a deed?

Difference between grantor and grantee.