In real estate, it is common to have certain terms thrown around quite often. Words like fair market value, land lot, subdivision, foreclosure, mortgage, etc., appear very frequently in the real estate landscape. So, those entering the property arena must enrich their vocabulary to walk through the uncharted territory easily.
Among all, two such common jargons unique to the industry are deed and title. Since these terms are closely connected, people tend to use it interchangeably. However, these are two separate terms with referring to two distinct legal concepts. Understanding of these terms can help the potential investor in navigating the home-buying process smoothly. So, in this blog, let's talk about how one is different from another.
A title is simply a legal way of saying that a person owns a right. It gives the owner the right to use the property. The person who owns the title can modify the property as required. The rights of the titleholder can also include the right to own, use, control, sell, and/ or dispose of the asset, in the way regarded suitable. In a nutshell, the title is conceptual and is a term for the person who owns the property. It states, "who is the ultimate holder of the property."
In addition, a title also means that the owner can transfer it in full or parts to others. However, since an individual or more people can hold titles, the owner cannot transfer more than what s/he owns.
A property deed is also known as a sales deed. A property deed is always in a documentary form. In other terms, it is a document or a paper associated with the property that confirms or conveys the right. The document can be used to transfer the title from one person to another. The transfer can be less than the title or as stated in the document.
Furthermore, an imperfect deed does not mean that there exists a problem with the title; instead, it is just how paperwork surrounding the deed is handled. And, to make it legally enforceable or to avoid confusions, the deed must be clearly specified. It is thus appropriate to have it recorded in the courthouse. Also, it must be duly stamped and attested in the presence of a witness.
So, when a person finally owns a property entirely, both title and deed are in the name of the same person. While the title represents the ultimate ownership, deed represents a formally executed written document instating the rights. It is therefore essential to have the deed recorded to make them fully binding on the parties involved in the transaction.
In general, real estate dealers take care of all the necessary paperwork so that the buyer doesn't have to worry much. Projects like The Oasis by KGK realty come in a ready to shift condition where homeowners can move just after purchasing the flat. The real estate developer ensures that the process of transferring remains as smooth as possible.