Deed

A signed document that transfers ownership of property from one party to another.

There are many kinds of deed, each which define a different type of ownership. Your attorney or many consumer websites will help you understand the difference. What the deed accomplishes is to determine the quality of the ownership interest. For example, the title vested by a warranty deed means that the seller guarantees (warrants) certain statements about the property, while the title vested by a quitclaim deed means simply that the seller quits whatever interest he has. If he has no ownership rights to a property, a quitclaim deed signed by him would give you the same ownership interest -- none at all!

A special warranty deed guarantees the title only against defects arising during the period of the current ownership of the property and not against defects existing before that time.

A deed of trust involves a third party called a trustee, usually a title insurance company, who acts on behalf of the lender. When you sign a deed of trust, you in effect are giving a trustee title (ownership) of the property, but you hold the rights and privledges to use / live there. The trustee holds the original deed for the property until you repay the loan. Unlike a mortgage, a deed of trust also gives the trustee the right to foreclose on your property without taking you to court first.

Deeds used in relation to a foreclosure proceeding have the effect of transferring ownership of the property to other interested parties. A Deed-in-lieu of Foreclosure is used when borrowers voluntarily convey their rights in a property to the lender. Selling your property, if possible is usually preferable to such a deed, because a deed- in-lieu of foreclosure goes on your credit record and tells all potential creditors that you were unable to meet your financial responsibilities.

FAQ:

I don't understand some of the details of my deed.
Foreclosure law in your state

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