Real property deed is a legal instrument that defines ownership of a piece of real estate property. Every developed piece of property is legally mandated to have a deed so that its ownership can be understood, and therefore contested for in a legal setting such as a courthouse. The deeds are needed when the owner of the property wants to sell off the property. The deed will show the name change and property transference agreement, and once the process is completed, the new owner’s name and signature are the ones that will appear on the real property deed.
There are different kinds of real property deeds, and you need to choose one based on the existing conditions. One is the general warranty deed. Offered by the seller (grantor) to the grantee (buyer), the deed is the most desired for those buying property as it conveys the highest level of protection from the seller. Given the warranties offered by the seller, it becomes easier for the buyer to obtain a loan from the bank that will allow them to own the property. A deed that shares a few similarities with this one is the special warranty deed. The only difference is, the guarantees offered by the seller to the buyer are not as many. There exists one that absolves the buyer and as such, no warranties are offered at all. This is called a quitclaim deed, and it is hardly used as many buyers find it undesirable.
As you have probably picked up by now, a real property deed is necessary when it comes to ownership transference of real estate property. The sale is considered final when there’s a deed with the name of inscribed in it. While the buyer retains the liberty to offer the type of real estate deed to give to the seller, the sellers are not mandated by law to agree. Seeking the greatest level of protection is necessary as it is a show of faith that the property is indeed worth the much you are going to pay for it. In light with this, you can ask for a general warranty from the buyer before committing to the procedure of buying and owning the property.
For first time buyers, the legality of the whole process is a little overwhelming, especially if you lack any background in real estate or law. Your real estate attorney can help advise you on decisions such as the type of real property deed that would be best for you. Additionally, they can simplify the legal language used in the deeds that may be beyond your level of comprehension.
Once you get your name on the real property deed, you need to address other details, such as getting your name on the mortgage taken by the property. This is necessary because when ownership of a property is transferred, all the obligations it had are transferred as well. It would be wise to get the mortgage under your name to avoid legal disagreements in future. The most convenient way is by refinancing and of course there are various option in financing your property purchase. Just compare and lookout for best options that suit your preferences in property planning.