Legal
Deed
A legal document that transfers ownership of real property from one party to another. When you buy a home, the seller signs the deed over to you at closing. The deed is then recorded with the county to become part of the public record. Different types of deeds offer different levels of protection — a warranty deed provides the strongest guarantees about clear ownership.
Why It Matters
Deed carries legal significance in real estate transactions. Property law, contract law, and lending regulations all intersect when buying a home, and terms like deed have specific legal definitions that affect your rights and obligations as a buyer or homeowner.
While real estate agents and lenders can explain general concepts, for questions about deed that could have significant financial or legal consequences, consulting a real estate attorney is worth the $200-$500 cost. In some states, attorney involvement in real estate closings is mandatory.
Real-World Example
Legal issues related to deed can surface during title searches, contract negotiations, or closing. Catching problems early is far less expensive than resolving them after you've closed on the property.
Pro Tip
If you're buying in a state that requires attorney closings (CT, DE, GA, MA, NY, SC, WV, and others), your attorney will handle deed-related legal matters. In other states, consider hiring one independently for a review of your purchase contract.