Ownership, Transfer, and Title
This chapter covers the forms of ownership, how title to real estate passes from one party to another, and the deeds and recording practices that make transfers valid and public. These concepts determine who owns what and how ownership is proven.
Estates and Forms of Ownership
The most complete ownership is a fee simple absolute estate, which lasts indefinitely and passes to heirs. Property may be held in severalty by one owner, or concurrently by several owners as tenants in common or joint tenants. Joint tenancy carries the right of survivorship, meaning a deceased owner's share passes automatically to the surviving joint tenants rather than to heirs. Life estates grant ownership only for the duration of someone's life, after which the property passes to a remainderman.
Deeds and Their Warranties
A deed is the written instrument that transfers title, and to be valid it must identify grantor and grantee, contain a legal description, state consideration, include words of conveyance, and be signed and delivered. A general warranty deed offers the strongest protection, guaranteeing clear title against all defects in the property's history. A special warranty deed covers only defects arising during the grantor's ownership, while a quitclaim deed transfers whatever interest the grantor has with no warranties at all.
Title, Recording, and Evidence
Title is the legal evidence of ownership, and recording the deed in the county gives constructive notice to the world of the new owner's interest. A title search examines the public record to trace the chain of title and reveal liens or encumbrances. Title insurance protects the owner and the lender against losses from undiscovered title defects. Recording establishes priority among competing claims, generally protecting the first party to record.