A deed is used to transfer ownership of real property. The deed is the instrument that represents the grantor's intent to convey a title to real property to the grantee. The grantor is the property owner, and the grantee is the party who receives title to the property. The real estate deed is often used to transfer property between a buyer and a seller. The property owner may also choose to perform an equity transfer and simply change the ownership status in the property to another individual, such as a family member.
The grantor must sign the deed. Most states require that a notary public confirm the grantor's signature; some states may require another person to witness the signing of the deed. The real estate deed includes words that show intent of the property owner to transfer title to the property to the grantee. Also, it includes a description of the property to identify the land, which may include the property address.
A warranty deed and a quitclaim deed are used to transfer real property. The quitclaim deed transfers whatever interest the property owner has in the properly. A warranty deed contains covenants of title and assures the grantee that the grantor has the power to convey the property without liens and encumbrances. A deed of trust, also known as an equity deed of trust, is an instrument used as a form of mortgage. The mortgage borrower conveys the property to the trustee, and the trustee holds title to the property until the borrower pays the total amount of the mortgage loan. If the borrower defaults on the loan, the trustee has the power to sell the property and use the proceeds to pay the loan; however, in some states, the trustee may not be given the power of sale.
When the property owner intends to change the ownership status in property, the title is transferred to the grantee. The title may be transferred to one person or two or more individuals. A property owner may choose to perform a transfer of equity for a variety of different reasons. Joint property owner may choose to transfer the ownership to a sole person; the property owner may choose to transfer shares of the property to co-owners; or an individual may obtain ownership to property by way of inheritance.
After the ownership status has changed in the property, the deed should be recorded at the county recorder's office in the county where the property is located. Recording the property gives constructive notice others of the change in property ownership.