A real estate deed is the legal document that dictates who owns a piece of property. A real estate deed grants ownership rights in the property to another person because it symbolizes the transfer of ownership. Generally, a real estate deed will include the party names, real estate description, and signature. However, you should check with your state’s laws to determine if there are any special requirements for real estate deeds to ensure it is a valid and legal document. Having a lawyer for property deeds is important because a lawyer can draft and review the deed to ensure it will be binding and complies with all applicable laws. Having a lawyer for property deeds provides an extra layer of protection for each party and will keep deed transfer transactions running smoothly. Additionally, if any conflicts arise a lawyer can help handle them and reach a conclusion.
Utah Real Estate Deeds
General Warranty Deed
In addition to transferring ownership to the real estate in its entirety, this deed promises clear and frees title. This deed will generally account for compensation where promises about title turn out to be false.
Quit Claim Deed
This type of deed will transfer whatever ownership rights currently exist in the real estate, even when it is unclear what those rights are exactly. This means that there could be other partial owners on the property or unknown liens.
In addition to transferring ownership interest to the real estate, this type of deed generally contains a promise that the current owner did not previously transfer the real estate to someone else.
Other deeds besides these common ones include special warranty deeds, fiduciary deeds, and trust deeds. Talking to a lawyer will help you determine which type of deed is the best way to transfer real estate ownership interests in your particular situation.
Legal Deed Review
Deed review refers to the process of a third party looking over a deed before executing the transfer. This will generally be a real estate lawyer or other experienced real estate professional. However, real estate agents are generally not equipped to do as thorough of a deed review as an experienced lawyer could provide. Deed review is important because it checks that the specific deed contains all relevant information, complies with state law, and will be enforceable by the courts. Deed review provides an opportunity to catch mistakes and correct them before executing the transfer and recording the deed with the appropriate county office. If mistakes are not caught before transferring property and recording the deed, both parties can face a lot of issues and liabilities down the road.
How Are Real Estate Deed Disputes Handled?
Real estate deed disputes can occur in a variety of situations, but most commonly occur with deeds that do not offer as many protections as a general warranty deed. Disputes generally focus on there not being clear title or promises made that turn out to be untrue. In order to handle this dispute you would need to present as much evidence to support validity of the transfer. Having the deed recorded would be best, but if this did not occur other helpful evidence would include written communication, witnesses to the actual transfer, and proof of the original transfer to show how much title or interest existed before the quitclaim deed occurred. An easier real estate deed dispute to handle would be with a general warranty deed claiming there were no liens on the real estate. If after the transfer it comes up that there was a lien, the grantor would need to pay it off and compensate the homeowner according to the applicable state laws. These disputes are fairly easy to handle since general warranty deeds offer the most protection to buyers. In order to prevent future conflict over a real estate deed, documentation is crucial. It is always important to ensure everything is in writing so there is proof of action if and when a conflict arises. Offering up a contract or agreement outlining the terms of a transfer and how to handle future disputes will help prevent conflicts and better navigate those that arise. Another ways to prevent conflicts include running a title search. This will confirm that the seller legally owns the real estate. It will also reflect any co-owners, liens, or other things that could cloud title like fraud. Purchasing title insurance will also provide another layer of protection for the buyer.
Legal Remedies for Real Estate Deed Disputes
There are several remedies that can apply when dealing with a real estate deed dispute. This includes:
• Compensation to remedy an unknown lien or other defect, depending on the type of deed involved;
• Other monetary damages for economic losses suffered;
• Equitable remedies where there are boundary disputes with a neighboring property. For example, a court could order the homeowner to move a fence if the property was incorrectly described on a deed.
There are several benefits of hiring a real estate lawyer for deed transfers. Having an extra layer of protection ensures that all laws are followed and mistakes are corrected before it is too late. A real estate lawyer can research all requirements, negotiate, draft the deed, and represent you in court if necessary. A lawyer can also help sellers decide the best type of deed transfer to perform depending on the circumstances of the sale. The real estate deed is the document used to transfer property. It includes the names of the current owners and the new owners, and it also includes a description of the property. The seller’s signature on the deed indicates his intent to transfer title to the buyer. Before a home is closed on, the real estate deed is executed on behalf of the seller. The seller or the seller’s broker will hire an attorney to prepare the real estate deed to ensure that all of the requirements in the creation of a valid deed are met before the seller conveys title to the property. All real estate deeds must be in writing. The deed must contain a formal legal description of the property, which contains a granting clause and evidence of consideration. The granting clause includes wording that demonstrates the seller’s intent to transfer the title to the buyer. The consideration is the amount of the purchase price or some other value given by the buyer.
Delivery and Acceptance
The real estate deed must be signed by the seller and notarized. Also, some states require one or more individuals to sign the deed as witnesses. The buyer is not required to sign the deed. The seller’s attorney is responsible for delivering the deed to the buyer, and the buyer must accept the deed. Before title is transferred to the buyer, the buyer’s attorney will perform a title search to determine if the seller’s title to the property accurately corresponds with the purchase agreement. A title search also shows the seller can transfer title to property that is free of liens, when the seller uses a warranty deed rather than a quitclaim deed. The buyer’s attorney will order the title report and send copies to the seller’s attorney. The real estate deed must be prepared accurately to prevent any title confusions and ambiguities in the future. The buyer must record the deed at the recorder’s office in the county where the property is located. This is to provide constructive notice to anyone who claims title to the property in the future and to anyone who records subsequent real estate documents, such as mortgage liens or lease agreements. Recording also protects the buyer’s ownership interest in the property, if the seller attempts to transfer title to another buyer. For future inquiries, attorneys and title insurers also depend on properly recorded documents to determine who owns the property and whether any liens are attached to it.
Differences Between a Deed and Title
• A deed is a legal document; a title describes a legal position of ownership.
• A deed is a means of transferring interest; a title is a legal right to use something.
• A deed must be captured in writing; a title is an abstract concept.
• A deed represents a right to claim something; a title is owned by the ultimate owner.
These differences between “title” and “deed” are in the very meaning of the words, what they express, and what they represent. In summary, a title indicates ownership of something whether it’s real estate, a vehicle, or a business while a deed is a legal vehicle comprised in writing and validated by preordained procedures (such as witness signatures) that facilitates the transfer of ownership. In some cases, a deed does not even transfer the entire title. For example, a property owner can issue a deed granting partial ownership of their property to another party.
Statute of Frauds
A deed is a legal document. According to the statute of frauds, this legal document must be captured in writing, signed, and witnessed. There are several categories of deeds, some of which might surprise you, but keep in mind that a deed is a document conveying a title. A conveyance is the transfer of real property (real estate). A license is a type of deed granting permission to do something whether that’s driving, hunting, or doing electrical work. A patent is a deed granting the creator of intellectual property to exclude others from benefiting from it without the creator’s permission. Even a college diploma is a type of deed granting the title of a particular degree upon the recipient. Power of attorney (POA) arrangements can also be executed as deeds, granting a legal representative the right to act on behalf of someone else. All of these documents are types of deeds. When it comes to deeds of conveyance—those types of deeds that pertain to buying and selling land or property—there are several types of deeds: warranty deeds, bargain and sale deeds, quitclaim deeds, and deeds of trust. The differences between these various types of deeds of conveyance are defined by the degree to which the issuer of the deed is granting title to the recipient (for instance, with or without certain limitations or conditions). These various types of deeds of conveyance will be discussed in more detail when we cover how ownership of property is transferred.
In the United States, property buyers are looking to secure estate as a fee simple, which derives from the word “fief” or domain. Fee simple is noted in writing with a property deed but keep in mind that there are many types of property deeds. The property deed that will concern most readers is the one that involves homeownership. Most homes are bought and sold using something called a general warranty deed (in the Utah, this is often called a transfer deed). This deed was created to protect both members of the transaction and minimize legal complications. It contains four main parts, or covenants. The covenant of seizing means that the grantor guarantees they actually own the property and can legally transfer it to the grantee. The covenant against encumbrances guarantees the property is free from any liens or encumbrances unless they are specifically stated (an example might include a public pathway that goes through a property or a utility line). The covenant of quiet enjoyment guarantees that the grantee will enjoy the use of the property without facing claims against their title. A covenant of further assurance is the grantor’s promise to deliver any necessary documentation. As you can see, a general warranty deed is a fairly all-encompassing document. This, of course, is to limit legal problems, which would quickly multiply and burden the local government with extensive disputes, which in times past, could even result in violence. Note, however, that some states only require a grant deed, which is similar to a warranty deed, but without a covenant that the grantor will defend the grantee against third-party claims. There are other types of deeds. A bargain and sale deed states that the grantor can hand over the property but cannot guarantee against encumbrances. This type of deed might be used by court officials seizing a property with unpaid taxes. Another type of deed used in these or similar occasions would be a limited warranty deed. This deed guarantees that the grantor holds legal title over the estate but makes no guarantee about what happened before.
For example, some investors focus on acquiring bank-owned properties that were acquired by the lender in a short sale (a sort of mutual arrangement between the homeowner and the bank), or auctioned properties that went to sale after a tax deed or lien was ignored. These investors will want to buy a title insurance policy in case the title ends up being questionable or unsalvageable due to numerous encumbrances. If there are any issues, the investor’s losses will be rectified through the insurance policy.
A quitclaim deed transfers interest in real property, but without any guarantees, not only against encumbrances but also without any promise that the grantor actually owns the property and can legally transfer it; hence it is also called a non-warranty deed. Because the primary function of a quitclaim deed is to help the grantor relinquish their hold of the title, a quitclaim deed is sometimes used to rectify any existing deeds that are questionable in nature, and redraft deeds that facilitate a perfectly clean title. Sometimes, this process of securing a title is called an “action to quiet title.” Bargain and sale deeds and quitclaim deeds will most likely not be used in any transactions you come across, unless you are a real estate investor who flips distressed homes or acquires severely discounted properties from tax sales. If that’s the case, you’ll want to learn a few other things about real estate investing for beginners as well.
Family Real Estate
Alternatively, you might be looking to solidify your ownership (in writing) of a family property that has been passed down through generations, which a quitclaim deed could help facilitate. If you’re buying a property, you will first have to work out a deal with the seller. This is often facilitated with the help of an experienced real estate agent, who often specializes in the area and is familiar with the price of comparable properties in the area. A building inspection, negotiations, and a down payment are all part of this process, as is applying for a mortgage which can take months. In some cases, after months of waiting, the bank will still not approve the potential homebuyer for a mortgage, which can be very frustrating. Before getting ready to close the deal, it’s important that a title search is performed on the property. This search will go back over the history of the particular parcel of land and establish a chain of title—that is, a history of estate ownership. It’s important to establish this history and get a certificate of title obtained for the grantee (seller) so that no surprise encumbrances, claimants, or inheritors can threaten to repossess the estate after its transfer. In most cases, once a home buying consumer has negotiated a deal with the help of their agent, it’s time to close.
Lawyer For Real Estate Deed In Utah
When you need legal help with a real estate deed in Utah, please call Ascent Law LLC for your free consultation (801) 676-5506. We want to help you.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506