Definition
A deed is a signed legal instrument that transfers ownership (or an interest) in real property or other titled assets from one party to another. It is the written evidence of a conveyance; the document itself, when properly executed and recorded, is used to prove who transferred what to whom.
Key points — what deeds do and why they matter
– A deed effectuates a transfer; the act of recording the deed in public land records gives notice to third parties and helps protect the grantee’s claim.
– Recording is separate from ownership: a deed is the means to transfer an interest, not the same thing as the “title” (the legal concept of ownership rights).
– Properly executed deeds reduce the risk of future disputes, enable sale or mortgage of the property, and put lien-searchers on notice.
– Formalities (signatures, notarization, witnesses where required, and accurate property description) matter: missing formalities can delay or complicate any later legal challenge.
Common deed types (short definitions and purpose)
– Warranty deed: The grantor guarantees clear title and promises against undisclosed claims; offers the strongest protection to the buyer.
– Grant deed (or general conveyance deed in some states): Implies some limited assurances (e.g., the property hasn’t been sold to someone else during the grantor’s ownership). Terms vary by jurisdiction.
– Quitclaim deed: Transfers whatever interest the grantor holds without any warranty. Used to clear title issues, transfer between family members, or remove an interest quickly.
– Deed of trust: Used in some states instead of a mortgage. A trustee holds the deed as security for a loan; the trustee can sell the property on borrower default under the deed-of-trust terms.
– Deed in lieu (of foreclosure): The borrower voluntarily transfers the deed to the lender to avoid foreclosure; usually negotiated with the mortgage holder.
Essential content requirements (common elements)
– Identification of grantor (transferor) and grantee (recipient).
– A clear legal description of the property (not just street address): lot, block, parcel number, metes and bounds, or recorded plat reference.
– Statement of conveyance (words that indicate transfer).
– Consideration clause (what, if anything, was exchanged; see below).
– Signature of the grantor(s), often acknowledged before a notary public. Some states require witness signatures.
– Any express covenants, exceptions, or restrictions.
– Recording information (county/town recorder, date, book/folio or instrument number) once filed.
The role of consideration
Consideration is the value exchanged to support the transfer—money, other property, or a statement like “for good and valuable consideration.” Including consideration demonstrates intent to create a binding transaction and distinguishes a sale from a gratuitous transfer. The amount listed doesn’t have to equal market value but can have legal and tax consequences if it is substantially different (for example, a nominal $1 consideration could be treated as a gift in some contexts).
Deeds vs titles — short comparison
– Deed: The physical legal document that conveys an interest.
– Title: The legal concept of ownership rights and interests in the property.
A recorded deed is strong evidence of title, but title quality depends on absence of liens, competing claims, defects, or unresolved probate issues.
Deed restrictions and covenants
– Deed restriction (restrictive covenant): A limitation written into the deed that constrains how the property may be used (e.g., setback rules, limits on building types, prohibition on certain commercial uses). Restrictions “run with the land” and bind future owners if properly recorded.
– Covenants: Promises by property owners to abide by certain rules; often used in planned communities or subdivisions and may be enforced by other owners or an HOA. Enforcement and scope depend on the wording and applicable state law.