Transfer of Title
Title is the legal evidence of ownership, and transferring it correctly is central to every sale. This chapter reviews deeds and their elements, the types of deeds, and how title is recorded and protected.
Deeds and Their Elements
A deed is the written instrument that conveys title from the grantor (seller) to the grantee (buyer). To be valid it generally must identify competent parties, contain a granting clause showing intent to convey, include an adequate legal description, and be signed by the grantor and delivered to and accepted by the grantee. Recording the deed gives public notice but is not required for the transfer between the parties to be valid.
Types of Deeds
Deeds vary by the warranties they provide. A general warranty deed fully guarantees the title against all defects and offers the buyer the most protection. A special warranty deed warrants only against defects arising during the grantor's ownership. A bargain and sale deed implies the grantor holds title but makes no warranties, and a quitclaim deed conveys only whatever interest the grantor has, with no guarantees.
Title, Recording, and Involuntary Transfer
Buyers protect themselves with a title search and title insurance, which defends against undiscovered defects such as liens or forged documents. Recording documents in the public record establishes priority among claims. Title can also transfer involuntarily by descent (dying without a will), escheat (to the state when there are no heirs), eminent domain, or adverse possession.