Now what about the deed? Jennifer Billock is an award-winning writer, best-selling author, and editor. A year later, the buyer who thought they covered all their bases with their new home’s title, comes to discover a hidden title issue with the house that will cost them thousands of dollars to remedy. But what actually are title deeds? Does Joint Survivorship on a Deed Mean I Own the House Too?. The deed is the physical document that conveys the title to the new owner when you sell your home. The buyer moves forward with the purchase, and you sell the house no problem. When title to a property isn't registered the old paper deeds are of huge importance as they prove the seller owns the property. Mo Choumil, founder and CEO of ATG Title in Fairfax, Virginia, recently ran into an issue like this. Individuals commonly believe that if they own a piece of real property then they can sell it when they want, transfer it to whomever they want, or devise it through their estate planning documents however they choose. First American Financial Corporation explains that: “Even the most skilled title professionals may not find all problems associated with a property. When buying a property it is useful to keep copies of other documents relevant to it, such as the contract, searches, planning and any listed … The property deed will include a description of the property and identify the grantor (seller) and grantee (buyer) for a particular transaction. Better Business Bureau. While we’re talking about deed vs. title, there’s another term worth explaining: abstract of title. It proves ownership to the land. We regret that questions cannot be answered individually, but we will try to feature them here. Because it is such a major sale, it is regulated by the government. Selling the Impossible: How to Win Expired Listings and Become a Referral Machine, 12 Final Walkthrough Tips and Hacks — So You Stay Sane and Don’t Miss a Thing, title issues due to filing errors, forgeries, or undisclosed heirs, seller will pay for the buyer’s title insurance policy, Contractor liens put against your house for that kitchen remodel, Improper title transfers due to a past paperwork error. But there wasn’t one documented, so now the house won’t sell without a correction to the deed, which would cost tens of thousands of dollars, Choumil said. Typically the seller will pay for the buyer’s title insurance policy, while the buyer pays for the lender’s title insurance, but this may be up for negotiation. If you have similar issues, you should obtain advice from a solicitor. For deed issues, you need to have a corrective deed drawn up, and get it notarized and recorded with the appropriate legal office in your town. “Title,” though it sounds like a document you’d find in a three-ring binder somewhere, is a concept, not a piece of paper. The deed to a house is a legal document showing transfer of ownership from one party to another. No company will insure the house until the easement issue is resolved. What exactly are title deeds and why should we keep documents relating to the sale of a property? Although “title” is a concept rather than a document, material facts related to a property’s title may be documented in the form of an abstract. A Special Warranty Deed is similar to the General Warranty Deed with one exception—it only promises clear title for the time you’ve owned the home. Essentially the buyer of your house (and the lender financing the transaction) doesn’t want to take on any of your old IOUs that use the property as collateral. It is also useful to keep old pre-registration documents, which can provide valuable information about boundary ownership, rights of access etc. Answer: If title to a property is registered at HM Land Registry, then the title deeds comprise an official copy of the Title Register and Title Plan, and copies of any documents mentioned in the Title Register that have been filed at the Land Registry. Buying a home is often the most expensive purchase a person makes in his lifetime. And now they’re the ones on the hook to fix it. The property would then belong to the chosen family member and they would take on any responsibilities that go along with owning the home. It's then registered with them, and the deeds are no longer of much use - so in this case they were probably sent back to you. How Much House Can I Afford If I Make $70,000 a Year? Ideally they should be kept in fireproof storage until the land is registered at the Land Registry and added to the electronic register. Why should we register our property with the Land Registry? Answer: If title to a property is registered at HM Land Registry, then the title deeds comprise an official copy of the Title Register and Title Plan, and copies of any documents mentioned in the Title Register that have been filed at the Land Registry. The title company comes back to you and the buyer and says, “You’re good to go! Here’s How Much Money You Need to Build Your Dream Home. When someone purchases a home, they're given a deed that becomes part of that home's chain of title. What Upgrades Increase Home Value? Wonderful. Quite common for a person to own land, and lease it to someone else who may build a house. Property deeds are legal documents used in real estate that transfers ownership of real property from a grantor (seller) to a grantee (buyer). If your home is being sold in a tax sale or foreclosure the property may be sold with a Bargain and Sale Deed. Since your name was not on the original deed you do not own any part of the house (with certain exceptions for divorce situations where a judge can ignore how title is held). And the current owner can’t just write in the corrections, either. The seller may not even legally be allowed to sell the house, but the buyer wouldn’t be able to take any recourse against the seller after the fact if that was the case. This sale can go ahead and move forward.”. A Grant Deed, like the two types of warranty deeds, shows that you have clear title to sell and no knowledge of anything that might impact the title. Can we use our neighbour's driveway to access our garage. If you have a question for Fiona McNulty, please email legalsolutions@standard.co.uk or write to Legal Solutions, Homes & Property, London Evening Standard, 2 Derry Street, W8 5EE.