Terms and Conditions
This glossary is provided as a quick reference for common terms used in land transactions. We encourage you extend your education with more research that what is presented here.
This glossary is provided as a quick reference for common terms used in land transactions. What is Title? – title gives you the right to enter upon the land, to possess, occupy, use, enjoy and dispose of the land as you desire. It is a bundle of rights to possess land. Title is conveyed from one person to another via a deed. A deed is a written contract between the seller (grantor) to the buyer or purchaser (grantee). Title can be conveyed through a Title Company, an attorney, a combination of title and attorney, or by a private party, depending on the state where the property is located.encourage you extend your education with more research that what is presented here.
What is a deed? – A deed is a legal document that is an official record of an agreement or official proof that someone owns land or a building.
What is vesting? In law, vesting is the point in time when the rights and interests arising from legal ownership of a property is acquired by some person.
Grantor – seller of property
Grantee – purchaser of property
Type of Deeds
There are many types of deeds, but here are 5 of the most common:
Warranty Deed: A Warranty Deed offers complete warranty of title to the Grantee. The Grantor of a Warranty Deed is guaranteeing there are no issues with the Chain of Title, or any liens against the property.
Special Warranty Deed: A Special Warranty Deed is similar to a Warranty Deed, however, the Grantor is only guaranteeing the property is free and clear of defect for only the time that they owned it.
Treasurer Deed: A Treasurer Deed is issued by the County Treasurer where the property is located as a result of non-payment of property taxes.
Quit Claim Deed: A Quit Claim Deed is typically used to give property to someone else, typically with no monetary exchange. The Grantor of the Deed is quitting their claim to the property. This deed offers no warranty to the Grantor.
Bargain and Sale Deed: A Bargain and Sale Deed conveys the property from one person to another without warranty similarly to a Quit Claim Deed. A Bargain and Sale Deed is typically used when there is a monetary exchange.
Deed Vesting Types
When the Title Document is created, please consider vesting language. There are 4 types, and we will ask you how you want the vesting to be identified on your deed document. This is very important if the person identified on the deed passes away. The type of vesting will determine how easy or difficult it will be to transfer ownership of the property to living relatives.
We are not attorneys, and we do not give legal advice. With that out of the way, here are 4 basic vesting definitions:
Sole Ownership: This is when one person or entity individually owns the property. This can be a person, an LLC or an Estate.
Tenants In Common: Tenants in Common is when more than one person or entity each owns a percentage of the property. Upon each owner’s death the percentage owned is passed to the heirs of the deceased, not to the other property owners. If the Deed does not state the tenancy, the default assumed is Tenants in Common, assuming the Deed does NOT specify they are married.
Joint Tenants: Joint Tenants is when more than one person or entity own the entire property and gives rights of survivorship. Meaning, when one person dies, their interest in the property is automatically passed to the other property owners.
Tenants by the Entirety: Tenants by the entirety is reserved for a married couple that owns property together that adds a layer of protection from creditors. Upon death, the property automatically transfers to the other property owner like with Joint Tenants.
If the owners are married and the Deed indicates the two parties are married, Tenants by the Entirety is automatically formed.