What is a house deed?

When you purchase a home, property ownership shifts to the buyer from the seller. There’s a lot of paperwork involved to make this official, but when everything is finalized, you’ll receive what’s called a new house deed. This concept is important for real estate investors and homeowners alike to understand.

Exactly what is a deed, you wonder? Let’s take a closer look at what a property deed is, what makes it valid, the different types of property deeds, why recording a deed is important, what to look for when reviewing a deed, and more.

What is a deed in real estate?

A deed for a house – sometimes known as a property deed – is a written document and legal instrument, typically drawn up by a real estate attorney, that moves property ownership from the seller (grantor) to the buyer (grantee). House deeds are important because they show who has a legal ownership interest in a property. A deed differs from other real estate documents or contractual agreements, and a deed carries presumptions of validity under common law.

When a home is sold traditionally or by foreclosure, the grantor must provide the house deed to the grantee, who’ll likely conduct a title search to be absolutely certain the property has no liens or encumbrances on it. The deed is then notarized and filed as public record with the recorder of deeds in the county where the property is located.

A property deed must be a written, physical document. That said, there’s no standard template that’s used for all real estate transactions. What any given house deed looks like can vary from state to state.

House deed vs. house title

From time to time, people confuse the terms “house deed” and “house title” because they both pertain to property ownership rights. A deed is a physical, legal document that conveys title. But a house title is conceptual rather than tangible; it refers to the ownership rights attached to the property. A deed, on the other hand, transfers the title from the grantor to the grantee. So when you purchase a home, you’ll own both the title and the deed.

A title search will review the home’s chain of title to validate the seller’s legal ownership and reveal any claims, liens, or errors that have to be resolved before the deed can be transferred.

What makes a deed valid?

A property deed is typically signed and notarized, but the information included in a deed can vary. Each state has different requirements for what a house deed should include. Despite this, most property deeds require the following information to be valid:

• The names and addresses of the grantor (seller) and grantee (buyer)
• A legal description of the property
• Words of conveyance or a granting clause that transfers ownership to the grantee
• Words of purchase/limitation that indicate exactly what rights or interest in the property the grantee is receiving, and whether there are any ownership limits
• A consideration clause that states what the grantor received in exchange for the property. “Consideration” means the value or amount of money being exchanged for the home.
• The grantor’s signature
• Proof of certification by a property clerk

“Combined, the act and the title make the ownership legally transferred and newly registered. This is necessary to have an easy real estate transaction and a long-term protection of property rights,” says Patrick Goswitz, a real estate investor with eXp Realty inTennessee.

To be legally effective, a deed must be delivered from the seller to the buyer, showing the intention of transferring ownership. Then, the buyer has to accept the deed, which makes it officially valid and completes the transfer.

Types of property deeds

In general, deeds fall into one of two main categories: private or official. Most often, private deeds are used in the transfer of a property, while official deeds tend to be used when court rulings are involved.

House property deeds can be further classified by the amount of protection they provide homeowners. Here’s a handy table that compares several deed types:

"A general warranty deed provides the strongest protection because the seller guarantees a clear title for the entire history of the property," says California-based real estate expert Sasha Poparic. “With a special warranty deed, the seller only guarantees that there were no title issues during their period of ownership. A quitclaim deed, on the other hand, offers no warranties – it transfers whatever ownership interest the grantor has, if any. A grant deed, common in some states, promises that the seller has not transferred the property to someone else and that it's free of undisclosed encumbrances.”

Meanwhile, a bargain and sale deed “is usually used in foreclosure or estate sales; it implies ownership but gives limited or no warranties,” Poparic continues. “A deed of trust, which is used in some states instead of a mortgage, places the property in trust as security for a loan. And with a deed in lieu of foreclosure, the homeowner voluntarily transfers the property to the lender to avoid the foreclosure process."

Recording a deed and why it's important

After closing, the deed will need to be recorded, which means it has to be filed with the county recorder/registrar of deeds so that it becomes part of the public record.

“Recording is important because it protects the new owner from later claims by showing clear, public proof of ownership,” says Poparic.

Keep in mind that unrecorded deeds may still be valid between parties, but they offer less protection to subsequent purchasers. Also, be aware that recording fees can vary from state to state.

Best practices for recording house deeds

Best practices for recording property deeds include:

• Ensuring the deed is accurate, complete, properly notarized, and meets local formatting rules.
• Recording the deed at your city recorder’s or local county office promptly after closing.
• Paying for any necessary recording fees or taxes.
• Retaining copies of the recorded deed for your own records.

Making changes to your house deed

You’ll likely need to visit your County Recorder’s office if you need to make changes to your property deed. Common changes include adding or removing an individual to or from your house deed, changing your name on the deed, or updating an error in the document.

The process to get such alterations made can vary from state to state, so you may need to do some research. In some cases, you may need to present your requested changes in court since home deeds are public documents. You may also need to pay a fee to have your changes recorded.

If you’re unsure if you need to make changes to your house deed or need guidance on how to start the process, a real estate attorney is likely the best person to help you.

What to look for when reviewing a deed

When reviewing your property deed, it’s important to confirm the following items:

• All names listed are correct
• Property description is accurate
• Proper notarization and signatures are present
• Warranty language is included
• Adjoining restrictions are indicated, if applicable
• Liens, encumbrances, or mortgages that may affect ownership are indicated
• Recording information is intact
• Consideration clause indicates the correct value or transfer terms
• Rights-of-way or easements are noted
• Deed type matches the intended ownership type

Red flags to watch out for include ambiguous legal descriptions, missing signatures, an unclear warranty, and lack of recording. If any of the above items are missing from your deed, or when in doubt, it’s best to consult a real estate attorney or title professional.

Special considerations about house deeds

Be aware of deed restrictions and how they can limit the use of the property. For example, restrictive covenants are legally binding rules attached to your property deed that limit what you can do with your home and land. These rules often come from condo associations, homeowners’ associations, and builders and are intended to maintain neighborhood character and property values.

Additionally, encumbrances and liens can affect the value or transfer of your property. An encumbrance is a broad type of claim attached to a property and presented by a party who is not the property owner; it commonly limits what the owner can do with their property in some way. A lien is a type of encumbrance that provides a claim holder the legal right to seize the real or personal property of a borrower if they fail to satisfy an outstanding debt or obligation.

FAQ about house deeds

How do I get a house deed?

When closing on a home, you should receive a copy of your house deed when the title is transferred to you. You can also request an additional copy at any time through your County Recorder’s office or Register of Deeds office (the official name may vary by location).

Can I transfer my house deed?

Yes, you can transfer your house deed, though the process and costs will vary by state. Speak with a real estate attorney to determine what your options are.

What’s the purpose of the deed?

A property deed serves as a legal instrument and written document that moves property ownership from a home seller to a home buyer. This deed’s purpose is to indicate who has legal ownership interest in that property.

Can a deed be challenged later?

If there are questions about its validity, a property deed can be contested later. This can occur if lack of signatures, notarization errors, forgery, or fraud are found. Challenges can also occur if the grantor was tricked, pressured, or lacked the legal ability to transfer the property. These disputes are usually resolved in court.

How long does recording take?

Recording of a deed often takes a few days up to a few weeks, although the timing will depend on the workload of the city or county recorder’s office. After being submitted, that office will review the deed carefully for accuracy and completeness prior to entering it into public records.

The bottom line: House deeds are critical in real estate transactions

A house deed is an important legal document that transfers the title, or ownership of a property, from the seller to the buyer. Most home sales involve the use of private deeds, and different types of deeds offer various levels of protection for both the buyer and seller.

It’s a good idea to carefully plan your home purchase by crunching the numbers. Use the handy Rocket Mortgage Home Affordability Calculator to help.