Real Estate Law..

 What's in a Deed?

In our last blog, we discussed one of the most important documents of a real estate transaction: the deed. In our discussion, we explained the different types of deeds that you make encounter at closing: Warranty Deed, Special Warranty Deed, Sale Deed, and finally the Quit Claim Deed.

Now in this post, we will discuss the crucial elements that a deed must include in order to be considered a valid and legal transfer of title.

1)      Must be written In order for a deed to be legally enforceable, it must be written. It does not have to be a 12-page, typed, academic dissertation but, it does need to be legible.

2)      Parties of Transaction The parties of the transaction need to be must be stated.  The giver of a property is known as the “grantor” of the deed and the receiver of the deed is known as the  “grantee” of the deed.  An important thing to know is that the grantor‘s name must be spelled exactly the way that it appeared on the deed that gave them title, even if it is misspelled. If not, it’s a possibility that the deed can be viewed as  invalid. Another good thing to know is that in some states, both spouses own all marital assets regardless if both of their names are on the title.

In community property states (Arizona, California, Florida, Idaho, Louisiana, Nevada, New Mexico, Texas, and Washington), the law presumes that both spouses own all marital assets, regardless of how they are titled. Thus, you also need a separate quitclaim deed from the grantor’s spouse, even if her name does not appear on title.

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3)      Consideration You must acknowledge that the grantor has received consideration  for the title. For example,        “ The grantor has  received considerations of the sum of (fifteen thousand) $15,000 dollars in hand and other good and valuable from grantee, the sufficiency of which is hereby acknowledged."

4)      Legal Description The legal description of the property must appear exactly as it does in the previous deed.  For example, “ Lot 16, Block 35, Harrisburg  Community, County of Richmond, State of Georgia”

5)      Words of Conveyance This section explains what kind of deed is being given in the agreement. Ex. “The grantor hereby grants, conveys, and …. ( quitclaims, warrants, sales) ”

6)      Signature of the Grantor Self explanatory

7)      Acknowledgment This section declares that the person signing the deed is who they say they are and it being done voluntarily. A deed must be signed before a notary public in order to be considered valid.

Hopefully this post will help you understand the legal mechanics of a real estate transaction.

- Auben Realty Improving Augusta One Home At A Time