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House Deed vs Title: What’s the Difference?

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Ben Naumann
Ben Naumann has been a well known figure in the real estate investing space in Houston TX for years

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Unveiling the difference between a house deed and title: what you need to know

When purchasing or selling a home, it’s important to understand the difference between house deeds and titles. A house deed is a legal document that conveys ownership of the property from one person to another. It includes information about the seller, buyer, property description, and any restrictions or conditions of the sale. A title is a record of who owns the property and also identifies any liens or encumbrances that are attached to it. While both documents are necessary for transferring ownership rights in real estate, there are significant differences between them.

Distinction #1: ownership rights

The primary distinction between house deeds and titles relates to ownership rights. House deeds are used to transfer legal possession of the property from one person to another upon completion of a real estate transaction, such as purchase or sale. The deed will identify all parties involved in the transaction as well as provide a full description of the property being transferred (e.g., address, size). After signing off on the deed and recording it with local authorities, ownership rights officially transfer from seller to buyer.

Titles on the other hand are used mainly for verifying who owns a certain piece of real estate by providing evidence that all prior owners have legitimately transferred their rights to subsequent owners — thus creating an unbroken chain of title going back all the way up until the original owner obtained title after purchase/sale was completed (or in some cases inherited it through inheritance laws). This means that even though buyers may receive physical possession upon closing escrow/purchase agreement — they won’t have full legal control over their new home until title has been properly recorded & transferred into their name as well!

Distinction #2: transferability of property

Another key distinction between house deeds and titles is how they affect transferability of property rights from one person/entity to another. When buying or selling residential real estate, both documents must be properly executed in order for transferability to take place — however, each plays its own unique role during this process! House deeds provide evidence that the initial owner has legally conveyed his/her interest in a certain piece of land/building, while titles verify that subsequent owners obtained the same right without any problems along the way (i.e., no liens against them). This combination helps ensure smooth transition when transferring ownership rights without having to worry about potential problems arising later down the line due to improper documentation at the time closing occurred!

Distinction #3: legal action limitations

Lastly, there’s also an important distinction when it comes to how each document affects potential legal actions associated with owning residential property — namely, what types of action can be taken if either party fails to comply with terms outlined within the sales contract? Generally speaking — since house deeds establish initial transferability of ownership — they tend limit what kinds of remedies available should either side not fulfill obligations stipulated agreement; whereas titles offer more protection against such eventualities since they can be used to trace back chain previous holders & help identify any potential issues may have occurred during past transactions which could affect current owner’s ability enforce contract terms against former sellers/buyers!

It’s essential for homeowners to understand key distinctions between house deeds & titles, so they know exactly what type of documentation required when buying or selling residential real estate — as well which document serves which purpose within the process! House deeds provide evidence of initial transferability, while titles verify subsequent owners did not face any problems along the way — ultimately helping protect both parties involved in the transaction from unforeseen complications arising out of improper paperwork at the time the deal was closed!

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