Understanding Property Deeds

Humans have long been steeped in rituals involving the transfer of property and the marking of boundaries. Ancient Romans planted “witness” trees and stones as permanent property markers.In Europe and North America, the “livery of seisin” was observed when sellers would hand buyers both a twig and a clod of turf. The soil represented ownership of the land, while the twig symbolized the right to its bounty. Centuries ago in England, a ceremony was held on the land being transferred, and the seller would physically hand some of the soil to the buyer to commemorate the transfer of title to the buyer. Often performed before witnesses, these acts served as living documentation of property transfers in primarily oral societies. These ceremonies are not done today, but other requirements must be satisfied to signify that title has been transferred.

In modern culture, real estate ownership is transferred from a seller to a buyer through a legal document called a property deed. The deed serves several functions beyond just transferring ownership. It creates a clear paper trail of property ownership, helps prevent ownership disputes, and may provide various legal protections to the buyer depending on the type of deed used.

There are two broad categories of deeds. Official deeds result from court proceedings or legal rulings. The most common are private deeds, which are transactions between individuals or businesses.

There are 12 types of deeds in real estate transactions, but seven are more likely to be used when buying or selling a home. The type of deed used depends on the circumstances of the transaction.

The seven most common types of deeds are:
1. Quitclaim Deed
2. Deed of Trust
3. Warranty Deed
4. Grant Deed
5. Mortgage Deed
6. Bargain And Sale Deed
7. Special Purpose Deed

Each state has specific requirements and essential elements for a deed to be legally valid. It must state the names of the buyer and the seller, describe the property being transferred, and include the signature of the party transferring the property. Not only must a deed be signed, but it must also be delivered to be effective and pass title.