What is a Deed Transfer
Deed transfer is a commercial term that highlights the transfer of real estate from one person to another. It is mandatory to make a deed agreement if in the case one decides to transfer a particular property from one individual to another. Deed transfers are primarily of three types. Each of the deed transfer is different from the other in terms of legal effect.
The other term that comes in with this discussion is ‘transfer deed’. ‘Transfer deed’ serves as a document that specifies the transfer of legal property from one individual to the other. Transfer deed primarily refers to assignment/transfer/conveyance. Depending upon the circumstance of the transaction, different types of transfers are available. TR1 is appropriate in the case when it is necessary to transfer a whole title whereas TR2 denotes possession sales.
Purpose of Deed Transfer:
The primary intention of deed transfer is to transfer the property ownership from one entity to another. Here the term ‘entity’ defines person, business as well as a combination of business and person alike. Deed transfer enables a new owner to take full liability of the rights and responsibilities of a commercial business. There are a few examples that suggest that the right of ownership can be qualified and limited in a certain manner.
Main Aspects of the Transfer Deed:
It is mandatory for the deed transfer to satisfy certain aspects. Some of the necessary aspects that should be satisfied are as follows:
- Document List Names of All Parties
- Document is Recorded in the County of Record
- Any Member of a Family Can View the Deed
- Different Deeds with which Real Estate can be Transferred
There exists specific deed for transferring real estate property as well. A warranty deed signifies that a “Grantor” owns a title whereas a “quitclaim” primarily transfers the real estate property owned by a “Grantee”.
Types of Real Estate Deeds:
Primarily there are four types of real estate deeds. It is possible to list the four types of real estate deeds as under:
- Warranty Deed
- Deed of Trust
- Quilt claim
- Deed in Lieu of Foreclosure
Warranty deeds are primarily of two major types. The two chief types of warranty deeds are special and general. General warranty deeds are supposed to cover the property from the date of origin itself whereas special warranty primarily covers real estate only for the time until which the seller owned the property. The primary purpose/objective of a Quitclaim deed is to add/remove the name of a person against real estate titles. Deed of trust is available with a promissory note. Apart from a promissory note, several other documents including truth in lending statement are secured along with the Deed of Trust.
Local/national laws govern proper transfer of deed information. It is always a judicious/preferable option to gain detailed information about the exact type of deed under consideration. One should be equipped with detailed knowledge as what are the best possible ways to control the deed transfer. One can prevent from committing mistakes by taking into consideration the above-mentioned aspects.