Guide to Property Deed Types for Wixom, Michigan Real Estate Transactions
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What is a Property Deed?
A property deed is a legal document that transfers ownership of real estate from one party to another. In Wixom, Michigan, as in other parts of the state, deeds must be properly executed and recorded to ensure clear and legal title to the property. Deeds are critical in defining the ownership and rights associated with real estate transactions.
What is a Warranty Deed?
In Michigan, the warranty deed is the most common type of deed for home purchases, providing the strongest buyer protection. A warranty deed guarantees that the seller holds clear title to the property and has the right to sell it. It also ensures that there are no undisclosed encumbrances or claims against the property. This type of deed offers the highest level of protection for buyers, making it the preferred choice in most real estate transactions in Wixom and throughout Michigan.
What is a Quitclaim Deed?
A quitclaim deed is often used when transferring property between family members or when no money is exchanged. Unlike a warranty deed, a quitclaim deed offers no guarantees about the title's status, which means the buyer assumes any risks associated with existing liens or claims. In Wixom, quitclaim deeds are commonly used for adding or removing a name from a deed, such as after marriage or divorce.
What is a Special Warranty Deed?
A special warranty deed provides a limited guarantee. It assures the buyer that the seller has not encountered any title issues during their period of ownership. However, it does not cover any claims that may have arisen before the seller acquired the property. This type of deed is less common in residential transactions in Wixom but may be used in certain commercial transactions.
What Are Land Contract Deeds?
Land contract deeds are used in seller-financed transactions, where the buyer makes payments directly to the seller until the purchase price is paid in full. In Wixom, this type of agreement is often used when buyers cannot secure traditional financing. The seller retains the title until all payments are completed, at which point a warranty deed is typically issued to the buyer.
Deed vs Title: Understanding the Difference
While often used interchangeably, a deed and a title are distinct legal concepts. A deed is the physical document that transfers ownership, while the title represents the legal rights to use and modify the property. Understanding this difference is crucial for anyone involved in real estate transactions in Wixom.
How Are Deeds Recorded in Michigan?
In Michigan, deeds must be recorded with the county register of deeds to be legally recognized. This process involves submitting the deed along with any required fees to the Oakland County Register of Deeds, which serves Wixom. Recording the deed provides public notice of the ownership change and protects against future claims.
Joint Tenancy vs Tenants in Common
Property ownership in Wixom can be held as joint tenancy or tenants in common. Joint tenancy includes the right of survivorship, meaning that if one owner passes away, their share automatically transfers to the surviving owners. Tenants in common allows each owner to hold an individual share, which can be sold or transferred independently. Choosing the right ownership structure is important for estate planning and managing future property rights.
How to Change Names on a Deed
Changing names on a deed in Wixom involves recording a new deed with the Oakland County Register of Deeds. This might occur due to marriage, divorce, or transferring property to a trust. It's essential to draft the new deed accurately and ensure it's properly executed and notarized to maintain clear title.
Protecting Your Property Rights
Protecting your property rights in Wixom involves ensuring that deeds are properly drafted, executed, and recorded. Working with professionals like Sonic Title can provide peace of mind. Our team catches title issues others might miss and ensures a smooth closing process. If you have questions about property deeds or need assistance, Sonic Title is here to help. Call us at (313) 251-5145 for a free consultation.
Whether you're buying a new home or managing your existing property, understanding the types of deeds and how they affect ownership is crucial. Sonic Title is committed to providing swift, professional closings with genuine care for Michigan families. Contact us today to learn more about protecting your real estate investments in Wixom.
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