Property ownership is arguably the top goal for many young people—a luxury home, no less. This might sound old and outdated, but there are studies that show how the new generation of workers (also dubbed as Gen Z) still wants to buy homes. However, owning a property seems to get harder and harder each day. Property prices are skyrocketing and appreciating in value at a really fast pace that even adults with considerably good-paying jobs cannot keep up. At the end of the day, it is no longer a choice but an inevitability. People want to, but they simply cannot.
Getting past the issues of affordability, commencing the buying process of any real estate property takes a lot of commitment and hard work. Most especially if the property is going to be someone’s home.
Choosing a place, size, design, and neighborhood takes time and dedication, and there might be a long list of items to consider according to a family’s needs and preferences. Buying a home can even be considered a sport at this point. This is why these days, many real estate companies tailor-fit their developments to cater to a target audience—which is where luxury homes come into the picture to make it easier for buyers to choose a property that will fit to their liking.
Once the choosing part is over and buyers are already set on purchasing their new luxury home, there is one item that they need to make sure to receive before accepting the property’s turn over. Actually, it applies to all real estate transactions; anyone who already made any will be familiar to this: the deed.
House deeds or property deeds are signed legal documents that transfers ownership of a real estate property to a new owner. In fact, deeds are not only used for real estate but are also used to transfer ownership of other legal assets such as vehicles.
Though closely linked to each other, a deed and a title are totally different from each other. Both are legal documents usually used during a sale of a property or asset but each serves a different purpose.
A deed is the document that transfers the legal rights to an asset or property from one owner to another. It is the proof that there has been a transaction wherein the asset or property has been transferred, which is why all the names of all the parties involved are specified along with their signatures.
The title, on the other hand, is the concept of property ownership that gives the owner the legal rights of possession and use. There are times, the title does not even exist in any physical form.
To sum up and easily understand the use of each document: a deed is the proof that someone is the owner of the house, commercial property, or any other asset. The owner holds the title to that property or asset.
Simply put, the purpose of a deed is to transfer the legal ownership of a property from one owner to another. This legal document is being filed through the local government where the property or asset is located. There are also other purposes of a property deed, not just when someone sells a property or asset. It can also be used when an owner is going to refinance or obtain a line of credit for their property or asset. Since it is a legal procedure, most of the time this task requires the assistance of the buyer’s buyer’s attorney or title insurance company.
Since the deed is being used for many different types of assets and properties, one could expect that there are also various types of deeds with different purposes.
First is called a grant deed. This type of deed provides two guarantees:
Second is a warranty deed, which is sometimes called a special warranty deed. From the name itself, this type of deed refers to a protection that is given to its holder. It declares that the grantor has not caused any title defect while owning the property.
Lastly, a quitclaim deed which releases the interest of a person or a party in an asset. Both the grantor could be a legal owner or not, and makes no promises.
There are also other types of property deed documents such as a general warranty deed and bargain and sale deed but the three types mentioned above are mostly the ones homebuyers will encounter. There is also something called a deed of trust which refers to a real estate transaction that involves a lender such as a bank as well as a buyer and a seller. The deed of trust inserts a fourth party, usually a title company, into the transaction called a trustee.
Once the deed has been filed in the public record by a local government official, it becomes a binding document in a court of law. The signing of a deed requires notarization and some places even require witnesses for this legal procedure to be completed.
One of the top things to do before commencing the buying process is checking the property’s deed. For this purpose, the register of deeds is usually available for public viewing and is maintained by the local government where the property or asset is located. Title search is also a thing that homebuyers need to do.
In reality, a deed does not have to be filed with the local government in order to be valid. Although, doing this step will help in avoiding trouble and possible delays down the road in case the property owner wants to sell it. If a deed is not written, notarized, and registered into the public record, it may cause an ownership dispute and will be referred to as an imperfect deed.
Unless specifically indicated that there is an expiration date, a deed does not expire.
There are times that a perfected deed can still be muddled with issues along the way. One example is is caused by the death of a property owner without indicating who should be in control of the property title in case of this incident.
Also, having granted the title through a deed does not necessarily mean that the new owner can do whatever they want with it. The deed can actually indicate provisions that the new owner is restricted to do with the asset or property. For example, an individual who signs a deed for a real property has a legal right to possess it but might be restricted to develop it.
Avoid the hassles of home buying process by making real estate transactions with trusted developers! One of the top real estate developers in the Philippines, Brittany Corporation, is known to provide the best luxury living experience with its luxury real estate developments all over the country. Receiving recognitions all over the globe with its world-class thematic communities, Brittany Homes is the best place to build that dream life for you and your loved ones.
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