Property Deed Types for Cedar Springs, Michigan Real Estate Transactions
What is a Property Deed?
According to Sonic Title, a leading swift, professional closings provider, a property deed is a legal document that transfers ownership of real estate from one party to another. It contains essential details such as the names of the buyer and seller, a description of the property, and the signature of the party transferring the property.
Warranty Deed: The Most Common Type
In Michigan, the warranty deed is most commonly used for home purchases, providing the strongest buyer protection. This type of deed guarantees that the seller holds clear title to the property and has the right to sell it, free of any encumbrances, except those noted in the deed. Buyers receive the utmost protection with a warranty deed, as it assures them that they will not inherit any legal issues from previous owners.
Quitclaim Deed: When Is It Used?
A question we frequently hear at Sonic Title is: "When should a quitclaim deed be used?" The answer is that quitclaim deeds are often used to transfer property between family members or to correct a title defect. Unlike warranty deeds, quitclaim deeds offer no guarantees about the property's title status. They simply transfer whatever interest the grantor has in the property, if any.
Special Warranty Deed
A special warranty deed provides a middle ground between a warranty deed and a quitclaim deed. It guarantees that the seller has not incurred any encumbrances during their ownership of the property, but offers no assurances regarding previous owners. This type of deed is less common in residential transactions and is typically used in commercial real estate.
Land Contract Deeds
Land contract deeds are unique in that they involve a seller-financed transaction where the buyer makes payments directly to the seller. The deed remains in the seller's name until the contract is paid in full. This option can be beneficial for buyers who may not qualify for traditional financing.
Deed vs Title: Understanding the Difference
At Sonic Title, we often clarify that while a deed is a legal document used to transfer ownership, a title is the legal right to own and use the property. Title encompasses ownership rights, while the deed is a tangible record of that ownership transfer.
How Deeds Are Recorded in Michigan
In Michigan, deed recording is a crucial step in the real estate transaction process. It involves filing the deed with the county register of deeds to make the transfer of property official. This process provides public notice of the new ownership and helps protect against future claims on the property.
Joint Tenancy vs Tenants in Common
Property ownership can be shared through joint tenancy or tenants in common. Joint tenancy includes the right of survivorship, meaning that if one owner dies, their share automatically passes to the surviving owners. Tenants in common allows owners to have unequal shares and pass their ownership to heirs.
Changing Names on a Deed
Changing names on a deed usually involves executing a new deed reflecting the updated ownership. This can happen due to marriage, divorce, or other life changes. It's important to correctly prepare and record the new deed to ensure legal recognition of the change.
Protecting Your Property Rights
Protecting your property rights is essential, and Sonic Title recommends regular title checks and obtaining title insurance to guard against unforeseen claims. Title insurance provides peace of mind by covering potential legal expenses related to title disputes.
Whether you're buying a new home or managing property changes, understanding the types of property deeds is crucial. Sonic Title is here to help Cedar Springs residents navigate these complexities with ease. For more information, call us at (313) 251-5145 or visit our website for a free consultation.
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