Property Deed Types for Troy, Michigan Real Estate Transactions
What is a Property Deed?
In Troy, Michigan, a property deed is a legal document that transfers ownership of real estate from one party to another. It is a crucial component in real estate transactions, serving as the official record of ownership. The deed specifies the type of ownership and any conditions or restrictions on the property.
Warranty Deed (Most Common)
According to Sonic Title experts in Metro Detroit, the warranty deed is the most common type used for home purchases in Michigan. This deed provides the strongest buyer protection by guaranteeing that the seller holds clear title to the property and has the right to sell it. It also assures the buyer that the property is free of liens or encumbrances, except those listed in the deed.
Quitclaim Deed (When Used)
A common question we hear at Sonic Title is: "When is a quitclaim deed used?" The answer is that a quitclaim deed is typically used in non-sale situations, such as transferring property between family members or correcting a title defect. It offers no warranties about the property's title, meaning the buyer receives only the interest the seller has, if any.
Special Warranty Deed
The special warranty deed is less common but sometimes used in commercial transactions. This deed guarantees that the seller has not incurred any title defects during their ownership but does not cover any issues prior to their ownership.
Land Contract Deeds
In Michigan, a land contract deed is an alternative financing method where the buyer makes payments directly to the seller until the purchase price is paid in full. Only then is the deed transferred to the buyer. This can be beneficial in situations where traditional financing is not possible.
Deed vs Title: Understanding the Difference
A question we frequently hear at Sonic Title is: "What is the difference between a deed and a title?" While the deed is the physical document that transfers property ownership, the title represents the legal rights to use and modify the property. Title is the concept of ownership, whereas the deed is the means to transfer that ownership.
How Deeds Are Recorded in Michigan
After a property transaction, the deed must be recorded with the appropriate county office, such as the Oakland County Register of Deeds for properties in Troy. This recording process is essential to establish public notice of the change in ownership and protect the buyer's rights.
Joint Tenancy vs Tenants in Common
When purchasing property, buyers in Troy often choose between joint tenancy and tenants in common. Joint tenancy includes rights of survivorship, meaning if one owner passes away, their share automatically transfers to the surviving owner(s). In contrast, tenants in common allows owners to hold different percentages and pass their share to heirs.
Changing Names on a Deed
To change names on a deed in Michigan, parties typically use a quitclaim deed. This process is often utilized after significant life changes such as marriage or divorce. It is crucial to ensure the new deed is recorded to maintain clear title.
Protecting Your Property Rights
Protecting your property rights begins with understanding the type of deed you hold and ensuring it is properly recorded. Working with a trusted title service like Sonic Title can provide peace of mind, as our team catches title issues others might miss and ensures a smooth closing process.
Whether you are buying, selling, or transferring property in Troy, Michigan, the team at Sonic Title is ready to assist. For a seamless closing experience and professional guidance, call us at (313) 251-5145. Our expertise in Metro Detroit real estate transactions ensures your interests are protected throughout the process.
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