House Property Deed vs Title: What's the Difference?

When you buy a home, the closing process brings its own special influx of terms, legal concepts, and requirements. And since the crux of closing is title conveyance, the biggest concern by far is the deed or title.

But what is a deed? Is it the same as the title? And what do you need to understand about titles and deeds to protect yourself as a home buyer?

Is a Title the Same as a Deed?

Deeds and titles are distinct but related concepts, both related to property ownership. It's natural that they might get confused.

When you buy a house, you get both the title and the deed. But you can only put your hands on one of them.

What Is the Difference Between a Title and a Deed?

Fundamentally, the difference between the two is that a property deed is an official written document proving that you possess a specific bundle of ownership rights, while a title is the concept of those rights.

Essentially, you prove that you have the title to a property by producing the deed.

Due to this relationship, people will use the terms as synonyms – they'll call the deed the "title." But by definition, a real estate title refers to the legal term, rather than the document.

How Do You Remember Deed vs Title?

The easiest way to remember the difference between a title and a deed is to think of a book.

A book, like a deed, is a physical object you can hold in your hand. Every book carries a title, but the title is conceptual rather than physical. You can't hand someone the book's title, separate from the book.

The book and the title go together, but they're different.

What Is a Property Title?

Many items of value have property titles, including cars, boats, and real property like land. A title refers to the legal ownership of a particular property.

Legal purchase will transfer the item's title to the buyer, but it isn't as straightforward as it sounds. Titles come with a bundle of rights, but those rights can be separated and held by different parties.

What Is a Real Estate Title and What Rights Are Included?

A real estate title conveys ownership of real property. For example, a house title conveys ownership rights to a residence.

The major rights conveyed by title are typically:

• Exclusive possession
• Exclusive use and enclosure
• Acquisition
• Conveyance
• Access easement
• Hypothecation
• Partition

When the real property includes land, the rights to the use of space and natural resources might be specified further, like water rights, air rights, mineral rights, easements to neighboring properties, and the rights for certain activities, like hunting or grazing.

Why Are Title Searches and Title Insurance Recommended?

Since title rights can be separated between various parties, getting title insurance during the purchase of a home can protect you if a third party has claim to some or all title rights.

A title search is also recommended – it's often a requirement for securing title insurance, but title searches can happen separately as well. A properly carried out title search will uncover limitations on property use, including liens, easements, and other potential claimants to the title. The result of a title search is a document called an abstract of title. It'll list the property's previous owners, as well as any past encumbrances.

The type of deed can also protect you in situations where there's a defect of the house property title – more on that below.

What is a Property Deed?

A real estate deed is the legal document used to transfer property ownership from one party to another. It documents the agreement between the property's old owner (also known as the grantor) to the new owner (also known as the grantee).

Types of Deeds

Legal deed categories vary by jurisdiction, but three are fairly universal: general warranty deeds, special warranty deeds, and quitclaim deeds.

General Warranty Deed

General warranty deeds offer the most protection to the buyer/grantee.

The grantor/seller makes a series of legally binding promises agreeing to protect the buyer against any prior claims and demands.

The seller promises that they have the legal right to convey title rights, that it's free of liens or encumbrances, that no one has a paramount title, and that they will deliver any document necessary to make the title good.

A general warranty deed also comes with certain mandatory disclosures, though the exact requirements vary by jurisdiction. Examples of mandatory disclosures include a:

• History of violent crime
• Nuisances like recurring odors
• Persistent property damage risks like flooding
• Restrictions to use/modification of the property like being in a historical district

Most house titles are conveyed by general warranty deeds because mortgage companies usually require them.

Special Warranty Deed

Special warranty deeds offer less protection than general warranty deeds.

In the case of a special warranty deed, the buyer only promises that they received the title to the property and haven't done anything while holding the title to create a defect.

Essentially, a special warrantee means the seller only promises that they haven't added any further title defects while they owned the property, while a general warranty goes all the way back.

Special warranty deeds are more common in commercial property than residential property.

Quitclaim Deed

Quitclaim deeds are also called non-warranty deeds, so it's unsurprising that they offer the least amount of protection.

Quitclaim deeds convey whatever interest the seller current has in the property, if any. Basically, the seller makes no guarantees whatsoever about the quality of the title. If the title is good, then a quitclaim deed can be just as effective as a general warranty deed, but it's less of a sure thing because the buyer has no legal recourse against the seller if a defect is found.

Quitclaim deeds are most common when property is transferred without money changing hands, like in the case of inherited property. You'd also use a quitclaim deed in the case of a deed holder undergoing a legal name change.

Deed vs Title: A Summary

A deed is sometimes called a title, but "deed" refers to the actual document while "title" refers to the legal rights of ownership. Property deeds ultimately convey title.

Title rights can be divided up between multiple parties, so it's important for home buyers to protect themselves during the closing process with a general warranty deed, title search, and title insurance.

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