Property Deed

What is a property deed?

A property deed is a legal document that is used in real estate transactions to transfer real property from one person (the grantor) to another (the grantee). Most property deeds will fall into one of the following categories:

1. Quit Claim Deed: This deed type is usually used to quickly change ownership on a property title and is commonly used between family members and to transfer property into a trust. Because quit claim deeds do not provide guarantees against title defects, they are usually the quickest and easiest solution for naming new property owners.
2. General Warranty Deed: This type of deed guarantees that the property title is free and clear of any liens and other defects (unless stated in the deed) and that the grantor owns proper title to the property. These guarantees make general warranty deeds ideal for property sales.
3. Special Warranty Deed: Also known as a "limited warranty deed," this type of deed is similar to a general warranty deed, except that there are no guarantees against any liens and defects that may have occurred prior to the grantor becoming the property owner.

When to use a property deed

If you want to alter the names on a property's title, you will most likely need to draft up a deed. Since each type of deed has different legal implications, your choice of deed will depend on your specific needs. For example, since a quit claim deed does not provide guarantees against title defects, it tends to be used for specific purposes when the transfer of title needs to be done quickly between parties that know and trust each other.

Quit claim deeds are generally not used for normal sales of real estate between unknown parties. Instead, a general warranty deed or special warranty deed would be used since it would offer the buyer a higher level of reassurance when buying the property. 

Property deed guide

Property deeds are useful for quickly and easily transferring title to real estate to a new owner. LegalNature's property deed form allows you to draft the right deed for your needs.

Number of Grantors and Grantees

Remember, the grantor is the party that owns the property and is selling or transferring it to the grantee, or buyer. Grantors and grantees may be either individuals or business entities.

Grantor and Grantee Types

You will need to specify whether each grantor and grantee is a married individual, a non-married individual, a trustee, or a business.

If a party is receiving the property as a trustee, then the trustee should be named as the grantee, not the trust itself. The deed will state that the trustee is receiving the property on behalf of the trust. If there are multiple co-trustees, you may list the name of any one of the trustees.

If a business is receiving the property, then you will name the business as the grantee and enter the name of the agent who will sign on behalf of the business. The agent should be someone with proper authority to sign binding contracts on the behalf of the business, such as an owner, executive, or manager.

Grantee Ownership Type – Sole Owner or Co-Owner?

You will be asked whether the grantee or grantees are receiving title as sole owners or co-owners. You should select "Sole owner" only if no other person will share ownership with the grantee after the deed is signed. Select "Co-owner" if more than one person or business will share ownership of the property with the grantee after the deed is signed. This would be the case, for example, if the grantor is a tenant in common and is transferring his or her interest to the grantee. The other tenants in common would not necessarily join in the deed as grantors, since only the grantor is changing his or her interest.

Grantee's Property Interest

Here you should indicate what type of joint property interest the grantees are receiving. Depending on your state, you can choose between a tenancy in common, a joint tenancy, a tenancy by the entirety or community property interest, and a partnership.

Tenancy in Common

A tenancy in common is a joint property interest in which each tenant (property owner) owns an undivided share in the whole property. Each tenant may transfer his or her interest without the need for the other tenants to join in the deed. When a tenant dies, his or her share passes according to their will or under state intestacy law when no will exists. Multiple businesses sharing ownership often choose to own as tenants in common due to the simplicity and flexibility of these ownership interests.

Joint Tenancy

A joint tenancy is the same but with a few important differences. First, each tenant owns an equal interest. So if there are four joint tenants, then each has a 1/4 ownership interest in the property. Also, a joint tenant may not sell or transfer his or her interest without the consent of the other tenants. This means that all joint tenants must sign as grantors when transferring or changing ownership and must sign together as grantees when receiving ownership. Lastly, each tenant has the right of survivorship, so when a joint tenant dies, his or her interest automatically passes to the other joint tenants in equal shares.

Tenancy by the Entirety

Tenancy by the entirety and community property interests are basically identical in nature and only differ in name. They are both similar to a joint tenancy but are for married couples. The same rules apply, including right of survivorship.

Final Steps

Remember to record your deed with your local land title office, usually known as the County Recorder’s Office or County Clerk’s Office. Each county has its own unique filing requirements. Therefore, we recommend contacting your office by phone or email in order to verify that you have met their requirements.

• Be sure not to write in the margins of the pages of your deed, as your office may need to write in these. Most counties want at least a three-inch margin at the top of the first page for official use, often to stamp the date recorded.
• Do not staple the pages of your deed together.
• All signatures on the document must be originals—not copied, printed, or stamped.