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What’s the difference between a deed and title?

What’s the difference between a deed and title?

When purchasing real estate property, the terms deed and title often are used interchangeably. However, the meaning between a deed and a title are entirely different. Understanding the difference can help you navigate real estate purchases and why you need to distinguish the difference.

What’s in a title?

A title can be thought of as a set of rights conferred to a person. In real estate, a title can be held by an individual, partnership, multiple people, corporations, or an entity who has legal rights. The sets of rights declared in a title can govern how a piece of property can be use, transfer, or finance. A title can be structured in various ways to define the legal rights of a party or individual who has an interest in the property. The most common types of titles are sole ownership, joint tenancy, tenancy in common, community ownership, or tenants by the entirety.

Sole ownership title means exactly as the phrase. A single person or entity has exclusive rights to the ownership and use of the property.

Joint tenancy title means that two or more person at the same time has equal rights of ownership of the property. The individuals who hold collective tenancy title need not be related. If in the event an individual die, title rights transfer to any surviving joint tenants. The remaining party members and new tenant maintains equal ownership interest.

Tenancy in common title means that two or more person can have an unequal proportion of right of ownership of a property. However, when an individual die, any surviving heirs will receive the shares of the decedent undivided.

Community ownership is a form of title that is held between a husband and wife during their marriage stating that they intend to own a property together. Either spouse can choose to dispose of one half of the property or will the property of another person however they wish.

A married couple can only hold tenets by the entirety. Property ownership is assumed to be held by a married couple as one individual. When one person dies, the title is transferred entirely to the surviving spouse. No legal action needs to take place to transfer title.

What’s in a deed?

A deed is a legal document that describes how assets or rights, in this case, a title, are transferred between parties. A deed is usually written and signed by the grantor and grantee. After both party signs the deed, the title is transferred to the grantee. For a deed to be legally enforceable, the deed must be clearly stated and recorded in the courthouse or assessor’s office.

What’s the difference anyway?

The key differences between a deed and a title can be clearly defined on the utility of the application. A deed is always written and signed by both parties, whereas a title is more abstract. A title describes who ultimately holds the property, and a deed represents the right to lay claim to a property. In general, a deed is nothing more than a vehicle to transfer property between two parties, and a title describes the rights of a person who holds a piece of property.

Need help locating property titles and 

If you need assistance to research and retrieve a title or deed, our Certified Field Agent can help you! Please call 714-632-3480 to get started and find out how we can help you.