410-653-3400
100 Painters Mill Road Suite 200
Owings Mills Maryland 21117
Residential Title & Escrow Company Commercial Settlement Services, LLC

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What Is the Difference Between a Deed And a Title?

When you’re in the process of buying real estate – especially if you’re a new buyer – you’re going to hear a lot of unusual terms and jargon. For many people, this is a unsettling and awkward prospect. After all, it’s hard enough to know what you’re getting into without having to sift through an entirely new language.

Deed - Title

You need to know the difference between deeds and titles

What Is the Difference
Between a Deed And a Title?

Two of the most common words you’ll hear – and think you know what they mean – are “title” and “deed.” You will likely be inclined to think they’re the same thing, but in truth they are completely different concepts. It’s true that when you own a property outright, you will possess both a deed and a title, but a title is distinct from a deed. Not knowing the difference between the two can cause problems for the purchaser.

The Truth About Deeds

Deeds are simply the legal documents that transfer title from one entity to another, not titles themselves. They must be written documents, according to the Statute of Frauds. Another term for “deed” is “vehicle of the property interest transfer.” In most states, deeds are required to be ecorded in a courthouse or an assessor’s office to make them fully binding, but a failure to file them does not change the transfer of title. It just means that the deed is not “perfected.” An imperfect deed does not mean that there is a problem with the title. It’s just a problem with the way that the paperwork surrounding the deed was handled.

OK, and So a Title Is…?

A “title” merely describes the person’s legal relationship to the land and determines that a person owns a right to a specific property. When a person has a bank loan, for example, even though the deed is under the buyer’s name, the bank holds the title to the property until the loan is paid off. The bank transfers the title to the homeowner after the debt is cleared.

How Can We Further Help You?

At Residential Title & Escrow, we bring peace of mind to the settlement table. If you are searching for a title company to help you through the closing process, contact us today! You can also fill out our simple online title request form and one of our knowledgeable representatives will get in touch with you promptly. Be sure to follow us on FacebookTwitterPinterest, andGoogle+ to stay up to date on news, and upcoming events as well as staff and client spotlights!

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Residential Title & Escrow Company
100 Painters Mill Road Suite 200 Owings Mills, Maryland 21117
Phone: 410-653-3400