Types of Property Deeds in Harbor Springs Real Estate Transactions
What is a Property Deed?
According to Sonic Title, a leading provider of professional closings in Metro Detroit, a property deed is a legal document that transfers ownership of real estate from one party to another. It is a crucial element in real estate transactions, serving as evidence of ownership. Deeds must be written, signed by the grantor, and delivered to and accepted by the grantee to be legally binding.
What is a Warranty Deed?
In Michigan, the warranty deed is the most common type of deed used in home purchases, offering the strongest protection for buyers. A warranty deed guarantees that the property title is free of liens or claims, providing peace of mind to the buyer that they will not face legal issues regarding the property's past ownership.
"The warranty deed offers the most comprehensive protection for buyers in Michigan real estate transactions."
What is a Quitclaim Deed?
A quitclaim deed is often used when property is transferred between familiar parties, such as family members, or to clear up title discrepancies. Unlike a warranty deed, a quitclaim deed offers no guarantees about the status of the title—it merely transfers whatever interest the grantor has in the property to the grantee.
Clients consistently tell our team that quitclaim deeds are ideal for simple transfers without extensive protections, often used in situations such as adding or removing a name from the title.
What is a Special Warranty Deed?
A special warranty deed provides limited guarantees compared to a full warranty deed. It assures the buyer that the property has had no title issues during the grantor's ownership but does not cover any issues that may have existed before the grantor acquired the property. This type of deed is more common in commercial transactions.
What Are Land Contract Deeds?
Land contract deeds are used in transactions where the buyer makes payments directly to the seller until the purchase price is paid in full, at which point the seller transfers the deed to the buyer. This can be a practical option for buyers who may not qualify for traditional financing.
Deed vs Title: Understanding the Difference
A common question we frequently hear at Sonic Title is: "What’s the difference between a deed and a title?" The answer is that a deed is a physical document that represents the legal ownership of property, while the title is the legal concept of ownership rights. You hold the title to a property, but the deed is what transfers title rights.
How Are Deeds Recorded in Michigan?
In Michigan, deeds must be recorded at the county recorder's office where the property is located to ensure the public is aware of the transfer. This process helps protect ownership rights and maintains an official record. For Harbor Springs, this involves recording at the Emmet County Register of Deeds.
"Recording the deed is a critical step in securing your ownership rights."
Joint Tenancy vs Tenants in Common
When multiple parties own a property, they can hold the title as either joint tenants or tenants in common. Joint tenancy includes the right of survivorship, meaning if one owner dies, their interest automatically transfers to the surviving owners. Tenants in common, however, allow each owner to control their share independently, which can be passed to heirs.
How to Change Names on a Deed
Changing names on a deed involves creating a new deed—often a quitclaim deed—to reflect the desired changes. This process is common in cases such as marriage, divorce, or inheritance. It is essential to record the new deed promptly to update the official ownership records.
How to Protect Your Property Rights
Protecting your property rights starts with understanding the type of deed you hold and ensuring it is correctly recorded. Title insurance can also provide an additional layer of protection against potential claims or disputes over your property.
For Harbor Springs residents, ensuring your property transactions are handled correctly is vital. Whether you're purchasing, selling, or transferring property, Sonic Title is here to help with our expertise and commitment to professional, swift closings. For assistance, call Sonic Title at (313) 251-5145.
Fair Housing Notice: We are committed to the letter and spirit of the Fair Housing Act.
We do not discriminate on the basis of race, color, religion, national origin, sex, familial status, or disability.
Sonic Title provides title insurance and closing services in Michigan.
Title insurance policies are underwritten by licensed underwriters.