Title Vs. Deed - What is the difference?
Two common terms you hear when buying a home are Title and Deed. What is the difference?
Simply, Title refers to the bundle of rights associated with the ownership of a piece of property and Deed refers to the document that proves ownership.
There are four types of Deeds:
General Warranty Deed - Provides the greatest protection to the buyer because the seller is legally bound to certain covenants or warranties. These warranties include:
Covenant of Seisin – Seller warrants that they have the right to sell the property.
Covenant Against Encumbrances – Seller guarantees that the property is free of any and all liens except as stated in the deed.
Covenant of Quiet Enjoyment – Seller guarantees that the title is good against any party that might attempt to establish a superior title.
Covenant of Further Assurance – Seller promises to obtain and/or deliver all things necessary to provide clear title.
Covenant of Warranty Forever – Seller promises to compensate the buyer for any loss sustained if the title fails.
Special Warranty Deed – Deed that contains only two basic warranties.
The seller received the title