When it comes to real estate transactions, the deed is one of the
most significant components. The contract will generally specify the terms and details for the sale, but it is the deed that outlines transfer of ownership (title) from the seller to the buyer.
A deed must be in writing and signed by the seller and buyer. You can have your real estate broker or attorney assist you in creating this document. The county recorder’s office in the county where the property is located is the location where the documents can be signed.
There are several types of deeds, but the warranty deed offers the best protection for the buyer. The seller will promise that no “encumbrances” or “defects” will affect the terms of the deed and transfer of property. A grant deed is similar to a warranty deed.
The deed with the most risk is the “quitclaim” deed, which provides no warranties. Buyers are recommended to consult with their attorney regarding the type of deed they will be receiving.
Since transfer of ownership documents are critical to the transaction, you must carefully check if the deed identifies the seller by name and as the “grantor”, the buyer is recognized as the “grantee”, and the property is described by lot number, section, metes, address, and bounds.
A deed will only become valid once it has been delivered to and accepted by the buyer and seller.