Transfer of Ownership

The Ways that Real Property Ownership is Legally Transferred

Transfer of Ownership Real estate is legally transferred through the use of a deed. A deed identifies the party transferring interest and the party acquiring interest, as well as a legal description of the property. It also identifies the type of ownership interest that is being transferred.

The Common Types of Deeds

The most desirable form of deed of conveyance is known as a warranty deed. A warranty deed expressly promises or guarantees that the seller has clear title—that there are no known liens or encumbrances held by any other party. Accordingly, the seller also acknowledges that, should any “clouds” appear on the title—unknown liens or ownership interests—the seller will compensate the buyer for loss of value. Warranty deeds also include a number of other promises by the seller.

A grant deed passes title and interests, but does not expressly warrant that there are no liens or encumbrances. Generally, it promises that the property has not already been transferred to another person, and that the only known liens and encumbrances are in the deed.

When there are liens or encumbrances—clouds on title—a seller may still transfer ownership, but the buyer will take the property with the liens and encumbrances still on the property. In these situations, it is typical for the seller to execute a quitclaim deed. The quitclaim deed includes no implied or express covenants of title/ownership, but only passes that interest currently held by the seller. Quitclaim deeds are often used within families to pass property from generation to generation.

Transferring Ownership without a Deed

If you are named on a deed as a “joint tenant,” i.e., if you own real property jointly, when one of the parties dies, all other joint tenants become the sole owners. A deed is not required to legally pass ownership interest of property held as joint tenants when one of the joint tenants dies.

If, however, you own property with another person as “tenants in common,” you may pass the property to your heirs upon your death.

The way to take property as joint tenants or as tenants in common is to specify that type of ownership in your deed. In most states, if you don’t specify that property is held in a joint tenancy, it is held as tenants in common.

Connect with Top-rated Attorneys Near You

    Latest Article

      GETLEGAL®ATTORNEY DIRECTORY

      Find Leading Attorneys in Your Area

          NEED PROFESSIONAL HELP?

          Talk to an Attorney

          How It Works

          • Briefly tell us about your case
          • Provide your contact information
          • Choose attorneys to contact you

          About GetLegal

          Our mission at GetLegal is to develop a family of sites that constitute the most useful, informative, reliable and exciting collection of legal resources on the web. We are constantly working to expand and improve many resources we offer to legal professionals and the public.

          List Your Law Firm in the GetLegal Attorney Directory
          Advertise With Us
          Newsletter Sign-Up

          By submitting information to this site, you give permission to GetLegal, or a partner of GetLegal, to contact you by email.

          © 2008-2022 LawConnect, Inc. All rights reserved. Sitemap | Copyright/DMCA Policy | Privacy Policy | Terms of Use | Disclosures/Disclaimers