All about Deeds by The Gentleman Closer
We are no experts on Deeds but we have seen and executed thousands and thousands of them every time we conduct a Purchase Settlement. We wanted to add this page to our website to help people understand what exactly a Deed is and how it pertains to your real estate transaction. We have heard many people talk about Deeds and pretend to know what they are talking about so this page will help clarify their wrongful speech.
There is land all over the United States and long ago the government decided to incorporate land rights and usage rules. When the ownership of this land was granted to the new property owner it was Deeded to them by a legal document called a Deed. The Deed is a document that is recorded with both names of the seller and new owner that convey the transfer of ownership. People and Agents always ask me if we can add the wife to the Deed and that is incorrect. What they mean to say is can you or the Title Company prepare a Deed to add the spouse to Title. You see when the land was partitioned and the rules were set in place, there needed to be a record of this and the Title was created as a way to keep track of each of these parcels within the government. This was also a way for them to tax people on the land and property and the Title is a way for them to keep track of that. Your Title will always be in your county courthouse with a record or chain of Title as to each owner that has owned the property. Your Title will always show your taxes as they are either paid or coming due in the next 6 months. Your Title will never be clear for longer than six months because taxes are always a lien. A Title Company will clear your title so ownership can transfer with proof that taxes are paid and other liens are released.
So now you have a Deed and own your land or home outright but you need a loan. When you get a loan of land or real property, a Deed is created that transfers your rights in the property to the bank as collateral for the loan. The Title Company prepares, executes, and records this new Deed notifying the government that this property now has a lien against it which is recorded and kept on record on your Title at the courthouse. When you pay off your loan, the Bank will send you a Deed which indicates they have released that lien and send you back your deed. This is turn clears your Title at the courthouse of the lien which was your loan.
Agents and Loan officers as well as clients need to remember that if a married couple wants to buy a home and both want to be on Title, the easiest way is to make sure that both of their names are on the purchase agreement. Many lenders require this to comply with Widow laws in each state however your lender will tell you if they need a spouses income or credit for loan approval. In many instances a spouse would be left intentionally off of Title to prepare for another purchase. There are protections to each person on Title to a home and if you have any questions about who should and who should not be on Title, we would be happy to help you.
There are additional charges to add members of the family or a spouse to Title after the transaction like deed prep and recording so make sure you clear that up before your transaction gets to the closing table. We hope this helps clear up any misconceptions. If you need a Deed prepared please send us a request and we would be happy to help.