03 Sep Deed vs. Title: What’s the Difference?
“Deed” and “title” are two of the most commonly used terms in real estate, but they’re not the same thing.
A deed is a legal document that transfers ownership of a property from one party to another. Title, on the other hand, represents the legal rights of ownership.
While the deed is signed and recorded, establishing ownership of the property, title insurance gives you the right to own, use, and transfer the property and provides the security that your home and/or investment is protected.
Understanding the difference is important because both play a critical role in every real estate transaction. Before closing, a title search helps confirm that ownership is clear and identifies any issues that need to be resolved so the property can be transferred with confidence.
Deed
A legal document that transfers ownership from seller to buyer.
Title
Your legal right to own and use the property.
The Key Difference
The deed is the document. The title is the ownership right.
Why It Matters/h3>
Both are essential in every transaction.