Homebuyers need to know what the differences between a deed and a title are when purchasing a house. Basically, a deed and title differ in their declaration of ownership.

A “deed” is a physical legal document that gives rights to the owner to claim the property. In contrast, a title is an understanding of who has the rights to that property. They work hand in hand as a way of stating ownership of a specific property, however, the key differences between them can clearly be seen here, to help any homebuyer before entering into any contract.

Deed vs Title: What is the Difference?

What is the difference between a deed and title terms? This is one of the most common questions asked inside a real estate office because, let’s face it, homebuyers just don’t know. The difference between deed and title is an essential need-to-know fact before you step foot into a real estate office to speak to a broker.

Don’t be afraid to flat out ask, “What is the difference between a deed and a title?”

  • Deed

A deed is a legitimate document used in the home buying process to convey and confirm the rights of property during the sale. It is a means of interest transfer, in writing, to claim the ownership of a property.

  • Title

A title is used to describe the legal position of a homebuyer. The buyers right to use the property is an abstract declaration of the ultimate property holder.  

Homebuyers need to know the differences between a deed and a title beyond a simple comparison. Here’s more.

Deed

This document is written in a form used to pass or confirm interest, assets, and rights. In order to enforce the deed, it must be clearly defined as a “deed,” in the face of the document. Properly stamped, attested to by witnesses, and signed by a grantor, the deed is delivered, and then a copy of the document is sent to the authorities to transfer property ownership.

The document itself is written in a specific way to help organize the information. If you are new to the world of real estate documents, a deed contains the following:

  • Title of the document
  • Date
  • Place
  • Name, address and other details of the parties
  • Terms and conditions
  • Jurisdiction
  • Signature of all parties and witnesses

Each paragraph of a deed is made to follow this basic legal format. The document can take other forms like a partnership deed, gift deed, trust deed, or lease deed.   

deed

Title

Ownership of a property must be assessed lawfully. The proof of legal rights to a property can be described as the title. Simply put, the proof of property ownership is represented as a title. The rights of the title handler can also include the right to use, sell own, control, and get rid of the property.

Differences Between a Deed and Title: the Conclusion

The differences between a deed and a title are clearly drawn but for homebuyers, the two documents can get confusing. The major things for a new buyer to look for can be seen on these grounds:

A “deed” is a legitimate document used by an individual to give the ownership rights to a specific property to another person. It is a physical form that must be signed by both the homebuyer and seller.

A “title” is known as a lawful position of an individual regarding something. In the case of a property, a title can be used to describe ownership. It is not a physical document however, it does mean that you have legal rights to a property.

Understanding the differences between a deed and title can make a BIG difference in your home buying experience. Use these tips to help avoid dangerous pitfalls of not knowing how a deed vs title works.