Types of Property Deeds in St. Louis, Michigan Real Estate
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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. This document is essential in real estate transactions, serving as a written record of the transfer of property. In Michigan, including St. Louis, deeds must be in writing and signed by the party transferring the property, known as the grantor.
What is a Warranty Deed?
In Michigan, the warranty deed is the most common type used for home purchases, providing the strongest buyer protection. A warranty deed guarantees that the grantor holds clear title to the property and has the right to sell it. It also assures the buyer that there are no undisclosed encumbrances or claims against the property.
The warranty deed offers comprehensive protection, making it a preferred choice for buyers in Michigan real estate transactions.
What is a Quitclaim Deed and When is it Used?
A quitclaim deed is often used in situations where property is transferred between family members, or to clear up title issues. Unlike a warranty deed, it does not guarantee that the grantor has a valid ownership interest in the property. Instead, it simply transfers whatever interest the grantor may have, if any, to the grantee.
These deeds are commonly used to add or remove a name from a property title, such as during a divorce or when adding a spouse to the property.
What is a Special Warranty Deed?
A special warranty deed offers some protection to the buyer but is not as comprehensive as a warranty deed. It guarantees that the grantor has not incurred any title issues during their ownership of the property. This type of deed is typically used in commercial transactions but can also be found in residential sales.
What Are Land Contract Deeds?
In a land contract, the seller finances the purchase, and ownership is transferred via a deed once the buyer pays off the contract. These arrangements are often used when traditional financing is unavailable. The buyer gains equitable title and possession, while the seller retains legal title until the contract is fulfilled.
Deed vs Title: Understanding the Difference
It's important to distinguish between a deed and a title. A deed is a physical document that represents the ownership transfer, while the title is the legal right to own, use, and modify the property. Understanding this distinction is crucial for protecting your property rights in Michigan.
How Are Deeds Recorded in Michigan?
Once a deed is executed, it must be recorded with the county Register of Deeds where the property is located. In St. Louis, Michigan, this ensures that the public record reflects the current property ownership and protects the buyer's interests. Recording a deed provides constructive notice to the world of the change in ownership.
Recording the deed promptly is critical to safeguarding your property rights and interests.
Joint Tenancy vs Tenants in Common
When holding title with others, it's important to understand the difference between joint tenancy and tenants in common. Joint tenancy includes the right of survivorship, meaning if one owner dies, their interest automatically passes to the surviving owners. In contrast, tenants in common allow each owner to bequeath their interest to heirs.
How to Change Names on a Deed
To change names on a deed in Michigan, a new deed must be prepared and recorded with the county Register of Deeds. This process is necessary for adding or removing an owner's name, and typically requires a quitclaim deed. It's essential to ensure all parties involved agree to the changes.
Protecting Your Property Rights
Ensuring your property rights are protected involves understanding the types of deeds and their implications. Consulting with a real estate professional or attorney can provide valuable guidance. At Sonic Title, we offer expert advice to help you navigate the complexities of property deeds, ensuring a smooth and secure transaction.
Whether you're buying, selling, or transferring property in St. Louis, Michigan, our team is ready to assist. Call us at (313) 251-5145 for a free consultation. We're here to help you protect your investment and secure your property rights.
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