The term deed and title often get confused for being the same thing. While they are similar, they actually have two different meanings.
Let’s start by covering what a deed is.
A deed is a physical document that is signed to transfer the ownership of an asset, most commonly used in the transferring of property.
In real estate, a deed transfers a title, the legal ownership of a property, from one party to another.
So, are a deed and a title the same thing? Not exactly.
The biggest difference between a title and deed is that one is a physical document and one is a concept. While a deed is a signed document that can be held in a person’s hand and should say who is the owner of a property, a title is the concept of that person’s ownership.
Let’s look at this from a different angle.
Think about the difference between a deed and a title as you would a book. You can own a physical copy of a book, which would be equivalent to a deed. The title of that book is a concept, similar to that of a title on property. From this perspective, a title of a book and title in real estate are both concepts.
Let’s explain this a bit further.
A title gives a party the legal right to own and sell a property. When an individual holds the title of a property, that means that they own it, can sell it, and use it in any way they please under the zoning restrictions.
The term ‘title’ is commonly used in reference to a ‘title search’. A title search is a search of public records for information such as deeds, liens, mortgage, wills, and divorce settlements that would affect the title (ownership) of a parcel.
Let’s shift our attention back to a deed.
Because a deed is a written document, all deeds are going to include certain components. Every deed will include:
- A description of the property, including the property lines
- The name of the seller, called a grantor
- The name of the buyer, called a grantee
To make a deed official, both the transferring party and receiving party must sign the deed.
The purpose of a deed is to provide evidence that a title has transferred from one party to another. It shows who has the right to the title of a given property. In other words, who has the ownership rights.
To recap, a deed is a legal document whereas a title is the concept of ownership of a property.
If you want to see some examples of questions that will be on the actual real estate exam, check out our free real estate practice exam. We have been named as the best real estate exam practice for 7 years in a row!
If you need to get your required educational hours done, check out our partners for online real estate education that can be done at your own pace from home or where ever you have internet access.
What Is A Planned Unit Development (PUD) In Real Estate?What is a Planned Unit Development in Real Estate? If you’re studying for your real estate exam, you’ve probably heard the term “planned unit…
What Is A Net Listing In Real Estate?What is a Net Listing in Real Estate? When you’re getting ready to take your real estate exam, it’s important that you know all…
Unilateral and Bilateral Contracts in Real Estate ExplainedWhat is The Difference Between Unilateral and Bilateral Contracts in Real Estate? There are a few key concepts that real estate students need to…
What You Need To Know About Estates For Years In Real EstateWhat is an estate for years in real estate? An estate for years in real estate? This is a question that often confuses people…
What Are Emblements In Real Estate?What are emblements in real estate? One of the topics you will come across when studying for your real estate exam is emblements. As…
What Is An Attorney In Fact In Relation To Real Estate?What is an Attorney in Fact Real Estate? When it comes to real estate, there are a lot of legal terms and concepts that…
Share This Article