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What's the difference between a title and a deed?

QUESTION:

I am always hearing that when property is sold or purchased, the seller’s title is checked. Isn’t title just the same as a deed?

ANSWER:

There are many different ways of acquiring and transferring title to real estate. The following methods are just a few ways: 1) deeds of conveyance; 2) adverse possession; 3) condemnation; 4) dedication; 5) escheat; 6) abandonment; and 7) wills and inheritance.

The word "title" may be defined as "evidence of ownership" or "the method by which an owner’s right to property is established or evidenced." It is in this sense that one speaks of "examining the title."

The most familiar method of transfer of title to real estate is by deed.

A deed is briefly described as a written instrument, executed and delivered, by which the title to real estate is transferred from one person, called the grantor, to another person, called the grantee.

There are many different types of deeds that could be found in a seller’s chain of title. Not all deeds are the same; and there are specific requirements for a valid deed.

The following deeds have been held to be void and pass no title even if given to an innocent purchaser: 1) a forged deed; 2) a deed from a person who has been judicially determined to be incompetent; 3) a deed from someone who is entirely without understanding of what the deed means; 4) a deed from a minor under 18 years of age; 5) a deed executed in blank, where the grantee’s name is inserted without the grantor’s authorization or consent; 6) a deed materially altered in escrow without the knowledge or consent of the grantor; and 7) an undelivered deed, such as a deed stolen from the grantor, or a deed delivered by an escrow holder in violation of the grantor’s instructions.

Title which is based on one or more of the other methods mentioned above will involve a more complex analysis and examination to determine the validity of the transfer or acquisition, as opposed to a deed transfer.

In order for a seller’s title to be "good and marketable", every step in the chain of ownership leading up to this seller must be examined and determined to be valid. "Off-record" matters or information that would only be known by survey or inspection can also have detrimental effects on one’s title. Checking someone’s title does involve much more than just examining the seller’s ownership of deed.

This information is not intended as specific legal advice to anyone and is based upon facts that change from time to time. Individuals should seek legal counsel before acting upon any matter involving the law.

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