Property Deed Types in Franklin, Michigan Real Estate Transactions
What is a Property Deed?
According to Sonic Title experts in Metro Detroit, a property deed is a legal document that transfers ownership of real estate from one party to another. It outlines the rights and obligations associated with the property. In Franklin, Michigan, understanding the various types of deeds is crucial for buyers and sellers to ensure a smooth transaction.
Warranty Deed (Most Common)
The warranty deed is the most common type of deed used in Michigan real estate transactions, providing the strongest protection for buyers. This deed assures that the seller has clear title to the property and the legal right to sell it. The warranty deed also guarantees that the property is free from liens or other encumbrances unless stated otherwise.
The warranty deed offers the greatest level of protection for homebuyers in Michigan.
Quitclaim Deed (When Used)
Quitclaim deeds are often used when property is transferred without a traditional sale, such as between family members or during a divorce settlement. This type of deed transfers the seller's interest in the property without warranties about the title's validity or encumbrances. It is important for buyers to conduct thorough due diligence when accepting a quitclaim deed.
Special Warranty Deed
A special warranty deed provides limited protection, ensuring that the seller has not incurred any title defects during their ownership. Unlike a warranty deed, it does not cover any issues that may have existed before the seller's ownership. This deed is typically used in commercial real estate transactions.
Land Contract Deeds
In a land contract, the seller finances the purchase, retaining the title until the buyer fulfills all payment obligations. Once the contract terms are met, a deed transfers full ownership to the buyer. This arrangement can be beneficial for buyers who may not qualify for traditional financing.
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?" The answer is that a deed is the legal document that transfers ownership, while the title refers to the legal right to use and modify the property. Ensuring both are clear and accurate is essential for property rights.
How Deeds Are Recorded in Michigan
Deeds in Michigan must be recorded with the county register of deeds to be legally binding. This process provides public notice of the property's ownership and protects the buyer's rights. In Franklin, this step is crucial to secure one's property interests.
Recording a deed with the county is essential for protecting property rights in Michigan.
Joint Tenancy vs. Tenants in Common
Joint tenancy and tenancy in common are common ways multiple parties can hold property. Joint tenancy includes the right of survivorship, meaning ownership automatically passes to surviving owners upon death. Tenants in common can have unequal shares, and ownership can be passed to heirs.
Changing Names on a Deed
To change names on a deed, such as after marriage or divorce, a new deed must be prepared and recorded with the county. This process ensures that the county records accurately reflect current ownership, protecting property rights.
Protecting Your Property Rights
The Sonic Title team has found that protecting your property rights involves understanding the type of deed you hold and ensuring it is accurately recorded. Consulting with experts, like those at Sonic Title, ensures you navigate the complexities of property deeds confidently and effectively.
Whether you're buying, selling, or transferring property in Franklin, Michigan, our team is ready to assist with all your real estate transaction needs. Call Sonic Title at (313) 251-5145 for a smooth, professional closing experience.
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