FAQ

THE DEED 

EVERYTHING YOU EVER WANTED TO KNOW ABOUT A DEED, BUT WERE AFRAID TO ASK...

The Deed symbolizes the culmination of negotiations with the seller. Its sole purpose is to transfer ownership of the property from the seller to you, the buyer. It is required in our legal system because of a law known as the Statute of Frauds which requires title to land and/or houses to be transferred from one person to another through a written document.

It is also the heart and soul of your new purchase. With it in hand, you can borrow money to cover an initial purchase and later refinance the mortgage to get a lower interest rate. In addition, after years of paying the mortgage, and getting more equity in your house, you can finance an additional amount in the form of a home equity loan.

DO DIFFERENT TYPES OF DEEDS EXIST?

Yes. The most common types of deeds are warranty and quit claim deeds. The warranty deed is at the top of the food chain because the seller provides you with a warranty or guarantee that s/he owns the property. With the quitclaim deed, however, the seller only sells or transfers whatever s/he owns, if anything. Given these differences, go for the warranty deed for the most protection in the event that your ownership interest is ever challenged. In some states, other types of “deeds” are also used.

MAY I USE MY NICKNAME ON THE DEED WHEN I PURCHASE MY HOUSE? 

No. It is best to use your legal name for one simple reason. The transfer of ownership is a serious matter. It will not be a secret because the deed will ultimately become part of a public file and recorded in the Office of the Register of Deeds in the county where the property is located.

As a result, legal names must be used to indicate the names of the parties, known as the "grantor" or seller and "grantee" or buyer. Nicknames or symbols cannot be used.

But how can you be sure if you have the seller's legal name? There are a couple of ways to confirm. The safest way to confirm the validity of all of the information in the deed, including the seller's name, is by ordering a title commitment for the house from a title insurance company.

If the title commitment lists a different name from the one shown in the deed, cancel the closing. If professionals are involved, you will have discovered this problem before the closing, but it never hurts to take a second look at the deed at the closing to make sure that it reflects the seller's legal name.

If for whatever reason a title insurance company is not involved, although you should always hire one, go to the Office of the Registers of Deeds and request the prior deed. In that deed, the seller will be the person to whom the property was conveyed or sold

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