Deed is a written document to transfer ownership of real estate. The deed must be signed by the grantor, the party transferring ownership. In many cases, it is also signed by the grantee, the party receiving ownership. The deed must describe the property transferred and show the intent to transfer ownership. The deed takes effect only when it is delivered to the grantee or to the grantee’s agent.
There are two main types of deeds—warranty deeds and quitclaim deeds. A warranty deed guarantees the grantee that the grantor owns all the rights described in the deed. If it turns out that the grantor does not own the rights, the grantor must pay the grantee’s resulting damages. A quitclaim deed contains no such guarantee and therefore is used less often.
Unlike the title to an automobile, a deed does not have to be submitted to the government to become valid. However, deeds may be recorded in the office of the recorder of deeds for the county or district in which the land is located. Recording the deed gives public notice of the rights the grantee is receiving. It thus helps protect the grantee against later claims by others to rights in the property.
Many land buyers obtain title insurance to protect themselves against later claims. Before the insurance company insures the buyer, it researches the title to the property and reports its findings to the buyer. Some land buyers hire a lawyer or other specialist to research the title and prepare a brief history of the land’s ownership. The history is called an abstract of title.
