Guide to Property Deed Types for Westland, Michigan Real Estate Transactions
What is a Property Deed?
In the realm of real estate, a property deed serves as a legal document that transfers ownership of a property from one party to another. It is crucial in real estate transactions as it provides a written record of property ownership transfer. In Westland, Michigan, as in other areas, understanding the various types of deeds is essential for a smooth property transaction.
Warranty Deed: The Most Common Type
According to Sonic Title experts in Metro Detroit, the warranty deed is the most common type used for home purchases in Michigan, including Westland. This deed offers the strongest protection for buyers, as it guarantees that the seller holds clear title to the property and has the right to sell it. It also ensures that the property is free from any liens or encumbrances, except those explicitly stated in the deed.
Quitclaim Deed: When Is It Used?
A quitclaim deed is typically used when property ownership is transferred without a traditional sale, such as between family members or when correcting a title defect. It offers no warranty on the title, meaning the grantor does not guarantee that they own the property or that it is free of liens.
Special Warranty Deed
The special warranty deed provides a middle ground between warranty and quitclaim deeds. It ensures that the seller has not incurred any encumbrances during their ownership. However, it does not cover any title defects that may have existed before their ownership. This type of deed is often used in commercial transactions or by entities like banks or trustees.
Land Contract Deeds
In Westland, a land contract deed is used when a property is sold on a land contract. This means the buyer makes payments directly to the seller until the purchase price is paid in full. The seller retains the title until the contract is fully satisfied, at which point a warranty deed is typically issued to transfer full ownership to the buyer.
Deed vs Title: Understanding the Difference
A common question we frequently hear at Sonic Title is: "What is the difference between a deed and a title?" The answer is that a deed is a legal document that transfers ownership, while a title represents the actual legal ownership of the property. The title reflects the rights of the owner to use and sell the property.
The median home price in Westland is $210,000, which is competitive within the Metro Detroit area.
How Deeds Are Recorded in Michigan
Once a deed is signed and notarized, it must be recorded at the county recorder's office to make the transfer public record. In Wayne County, where Westland is located, this process ensures the buyer's ownership is officially recognized. It's a crucial step to protect your property rights and prevent potential disputes.
Joint Tenancy vs Tenants in Common
When purchasing property with others, it's important to understand ownership structures. Joint tenancy includes the right of survivorship, meaning if one owner dies, their share automatically passes to the surviving owners. In contrast, tenants in common allows each owner to pass their share to heirs, maintaining individual ownership.
Changing Names on a Deed
To change names on a deed, whether due to marriage, divorce, or any other reason, a new deed must be prepared and recorded. This often involves filing a quitclaim deed to reflect the updated ownership. Sonic Title can assist you in navigating this process smoothly.
Protecting Your Property Rights
Ensuring your property rights are protected is paramount. This involves keeping deeds up to date, understanding your ownership structure, and promptly recording any changes. At Sonic Title, we handle the unique challenges of Michigan titles to safeguard your investment.
Whether you're navigating a complex transaction or simply have questions about deeds, our team at Sonic Title is ready to help. Call us today at (313) 251-5145 for guidance tailored to your needs in Westland, Michigan.
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