Transfer of Title
Title is the legal evidence of ownership, and this chapter explains how it is transferred and protected. Topics include deeds and their covenants, voluntary and involuntary transfer, and the importance of recording and title insurance. Clear title is essential to a marketable transaction.
Deeds and Their Covenants
A deed is the instrument that conveys title from grantor to grantee and must meet legal requirements such as a competent grantor, identifiable grantee, granting clause, and legal description. A general warranty deed offers the broadest protection with full covenants covering the entire history of the title. A special warranty deed covers only the grantor's period of ownership, and a quitclaim deed conveys whatever interest exists with no warranties. Delivery and acceptance are required to complete the transfer.
Recording, Title Insurance, and Involuntary Transfer
Recording a deed in the public records gives constructive notice and helps establish priority among claims. Title insurance protects the insured against covered defects discovered after closing. Title can also transfer involuntarily through adverse possession, escheat, eminent domain, or foreclosure. A title search and marketable title help ensure the buyer receives ownership free of undisclosed liens.