Property Deed

A property deed is a legal document that transfers ownership of real estate from one person (the grantor) to another (the grantee). It outlines specific details about the property, including a comprehensive description of the property boundaries. When a property is sold, the deed is the legal instrument that conveys the property from seller to buyer.

How a property deed works

A deed conveys ownership from the grantor (current owner) to the grantee (recipient). 

Requirements vary by state, but a deed generally includes:

• Full legal names of the grantor and grantee
• Words showing the grantor’s intent to transfer the property
• A precise legal description of the property
• A consideration statement, even if the transfer is a gift
• The grantor’s signature
• Delivery to, and acceptance by, the grantee
• Any notarization, witness, formatting, tax, or recording information required by state or local law

Once executed, the deed must be recorded with the County Recorder's Office in the jurisdiction where the property is located. This creates a public record of the transfer and protects the grantee against future competing claims.

Common uses

Property deeds appear in a range of situations beyond a standard real estate sale.

• Real estate sales: A seller uses a deed to transfer ownership to a buyer at closing.
• Family transfers: A parent, spouse, or relative may use a deed to transfer property to another family member. The right deed type depends on the relationship, state law, title issues, and tax considerations.
• Funding a living trust: An owner may use a deed to transfer real estate into a revocable living trust.
• Adding or removing a co-owner: Marriage, divorce, death of a co-owner, or estate planning may require a new deed or court-approved document to update ownership records.
• Transfer-on-death deeds: In states that allow them, a transfer-on-death deed may let an owner name a beneficiary to receive real estate after death without a probate transfer. Requirements and effects vary by state.

Key deed types

Not all deeds offer the same protection. The three most common types differ in the warranties the grantor makes:

• Warranty deed: Strongest protection. The grantor guarantees the title is clear of all encumbrances and that they have the legal right to transfer. Standard in arm’s-length sales.
• Grant deed: Middle protection. It usually includes limited promises that the grantor has not already transferred the property and has not created undisclosed encumbrances.
• Quitclaim deed: No guarantees. The deed transfers whatever interest the grantor holds, with no assurances about title condition. Family members or parties with an established trust relationship typically use it, though the grantee has no recourse if title defects emerge later.

Property deed vs. property title

A deed is the written legal document used to transfer or confirm ownership. Title refers to the ownership rights a person or entity has in the property. Title may be affected by encumbrances, such as liens, mortgages, easements, leases, or restrictive covenants. A recorded deed updates the public record to show the transfer, but title issues may still exist.

Key considerations

Before preparing or signing a deed, owners and buyers should review the property, ownership structure, and state requirements:

• Existing encumbrances: Mortgages, liens, and easements remain attached to the property after transfer. The grantee takes the property subject to any existing claims unless the parties resolve them separately.
• Co-ownership structure: Joint tenancy, tenancy in common, and community property can affect inheritance rights, survivorship rights, creditor issues, and each owner’s ability to transfer an interest.
• State requirements: Deed forms, signature rules, notarization, witnesses, transfer taxes, recording fees, and required cover sheets vary by jurisdiction.
• Prompt recording: A signed deed that is not recorded may leave the grantee with less protection against later competing claims. Recording should usually happen soon after signing and delivery.

Related terms

These related terms can help explain how property deeds connect to ownership, title, and real estate transfers:

• Grantor: A grantor is the person or entity transferring an interest in property.
• Grantee: A grantee is the person or entity receiving an interest in property.
• Encumbrance: An encumbrance is a claim or restriction that can affect a property’s title, use, or transfer.
• Property title: The legal ownership status a deed conveys; distinct from the deed itself.
• Living trust: An estate planning tool that typically requires a deed transfer to move real estate into the trust.

FAQs about property deed

Who holds the deed when there is still a mortgage?

The homeowner's name appears on the recorded deed as owner of record, but the lender holds a security interest through a separate instrument, a mortgage or deed of trust, until the loan is paid off.

How do you get a copy of a recorded deed?

Recorded deeds are usually public records. You can request a copy from the county recorder, county clerk, register of deeds, or similar office in the county where the property is located. Many counties offer online search tools, while others require an in-person or mailed request and may charge a small copy or certification fee.

What happens to liens when a deed is transferred?

Liens and other encumbrances may stay attached to the property after a deed transfer unless they are paid, released, or otherwise resolved. A warranty deed may give the grantee claims against the grantor for certain undisclosed title problems. A quitclaim deed generally gives no title warranties, so the grantee takes more risk.