Buying a house is a major investment. Before you pay big bucks for a property, you will want to receive a thorough understanding of the process and the terminology that surrounds it. Discover the difference between two important terms, a title and a deed, as well as the importance of title insurance below.
Real Estate Title
A title determines exactly who owns a property, this is done by completing an abstract title search and allows title insurance to be issued on the deed. Holding the title to a house gives you certain legal rights. For instance, it would allow you permission to sell it. Note that a title isn’t an actual document but simply a term referring to ownership rights.
A title can be held by an individual or by multiple persons, such as a married couple. A title can also be held by an organization, partnership, corporation, or trust. For example, when a bank forecloses a home, it may become the owner.
Real Estate Deed
A title is transferred using a deed. This legal document formally transfers the ownership of a property from one party to another. It must be signed by the seller and the grantor to transfer their property rights. The grantee is the term for the person who then takes possession of the property.
Title insurance covers issues that interfere with ownership rights that weren’t identified before the deed transfer. Examples include back taxes owed on the real estate or previously unknown heirs to the estate claiming ownership. Title insurance is essential to protecting any real estate investment.
Scarab Title & Escrow Services, LLC, of New Port Richey, FL, provides title and escrow services to support reliable real estate sales. Working with realtors, listing agents, and sellers directly, these professionals serve all of Florida. They believe in open and honest client communication and make themselves available for calls after hours to ensure top-quality customer care. Learn more about their background in title insurance and real estate closing services online. For an appointment, call (727) 378-4553.