Chapter 7 · National foundations
Deeds, Title, Recording, and Foreclosure
5 min read · 1 checkpoint
On this page
Title is not a piece of paper
Title The legal ownership interest or rights in property, distinct from the deed documenting transfer. See Chapter 7. Glossary is the legal ownership interest. A Deed An instrument used to convey an interest in real estate. See Chapter 7. Glossary is an instrument that conveys an interest in real property. Signing a deed, delivering it, accepting it, Recording Placing an instrument in the authorized public record system. See Chapter 7. Glossary it, and insuring title are related but distinct events. A purchase contract generally promises a future transfer; it does not ordinarily perform the same function as the deed. S06 S07
The Grantor The party conveying a property interest. See Chapter 7. Glossary conveys; the Grantee The recipient of a conveyed property interest. See Chapter 7. Glossary receives. The grantor must have the capacity and authority required by law. When an entity or estate owns property, verify the signer's authority.
What makes a deed effective
Typical requirements include an identifiable Grantor The party conveying a property interest. See Chapter 7. Glossary and Grantee The recipient of a conveyed property interest. See Chapter 7. Glossary, operative words showing a present intent to convey, an adequate property description, execution by the grantor, and delivery and Acceptance Assent to an offer in the required manner without a material change that creates a counteroffer. See Chapter 10. Glossary. Requirements for witnesses, Acknowledgment Formal acknowledgment of execution before an authorized officer, commonly relevant to recording. See Chapter 7. Glossary, and other formalities vary.
Delivery involves intent that the instrument take effect, not merely moving paper from one desk to another. Acceptance is also necessary. A Deed An instrument used to convey an interest in real estate. See Chapter 7. Glossary can be effective between the parties before Recording Placing an instrument in the authorized public record system. See Chapter 7. Glossary, depending on law. Recording commonly protects against competing claims and gives Constructive notice Notice attributed by law, including through qualifying public records. See Chapter 7. Glossary; it is not universally the event that first creates the transfer.
An acknowledgment is a formal confirmation of execution, commonly before a notary. It often supports recordability, but notarization does not prove that the grantor owns the property or that the transaction is wise. A valid gift deed does not ordinarily require a market-price payment. S07
Types of deeds
A General warranty deed A deed containing broader title warranties than a special warranty deed, subject to its language and law. See Chapter 7. Glossary provides broad Title The legal ownership interest or rights in property, distinct from the deed documenting transfer. See Chapter 7. Glossary covenants, often extending to defects arising before the Grantor The party conveying a property interest. See Chapter 7. Glossary's ownership. A Special warranty deed A deed with warranties generally limited to the grantor's ownership period. See Chapter 7. Glossary generally limits its warranties to the grantor's period or acts. It does not promise that older defects do not exist.
A Quitclaim deed A deed transferring the grantor's interest, if any, without ordinary title warranties. See Chapter 7. Glossary transfers whatever interest the grantor has, if any, without the usual title warranties. It can transfer a substantial interest when the grantor owns one; it does not always mean defective title. Conversely, it cannot create ownership the grantor lacks.
A bargain-and-sale Deed An instrument used to convey an interest in real estate. See Chapter 7. Glossary, grant deed, Trustee A party holding property, powers, or duties under a trust or deed-of-trust arrangement. See Chapter 4, Chapter 15. Glossary's deed, sheriff's deed, and personal representative's deed have meanings and implied covenants that depend on jurisdiction and the instrument. Know the form your examination tests rather than assuming the name carries identical promises nationwide. S07
Traditional warranty covenants include seisin (ownership), right to convey, against Encumbrance A claim, burden, restriction, or interest affecting property. See Chapter 5. Glossary, quiet enjoyment, warranty, and further assurances. Their timing and legal effect differ. The warranty of quiet enjoyment in a deed concerns superior title claims; do not confuse it with a landlord's covenant protecting a tenant's lawful possession.
Actual, constructive, and inquiry notice
Actual notice Direct knowledge of information, contrasted with notice attributed by law. See Chapter 7. Glossary means direct knowledge. Constructive notice Notice attributed by law, including through qualifying public records. See Chapter 7. Glossary is notice the law imputes, commonly through properly recorded documents. Inquiry notice may arise from facts that would prompt a reasonable investigation, such as someone other than the seller openly possessing the property.
Recording Placing an instrument in the authorized public record system. See Chapter 7. Glossary systems include race, notice, and race-notice approaches. These govern priorities between competing claimants in different ways. A later purchaser's value paid, notice, and recording time may all matter. Do not answer every competing-deed question with “the first Deed An instrument used to convey an interest in real estate. See Chapter 7. Glossary signed wins” or “the first deed recorded wins.” S05 S06
Establishing and protecting title
The Chain of title The sequence of ownership-related transfers and instruments affecting an interest. See Chapter 7. Glossary is the historical sequence of transfers. An Abstract of title A summary of instruments and proceedings affecting title in the examined record chain. See Chapter 7. Glossary summarizes relevant recorded instruments. An attorney's Title The legal ownership interest or rights in property, distinct from the deed documenting transfer. See Chapter 7. Glossary opinion evaluates the title under the scope of the examination. A quiet-title action seeks a judicial determination of interests or removal of adverse claims.
Marketable title Title meeting the applicable standard for freedom from reasonable doubt or unacceptable defects. See Chapter 7. Glossary is title sufficiently free of reasonable doubt or serious defect under the applicable legal standard. It does not necessarily mean the property has no Easement A right to use another's land for a defined purpose without owning that land outright. See Chapter 5. Glossary. Insurable title means a title insurer is willing to insure subject to stated terms; that is not automatically identical to marketable title.
An owner's title policy protects the insured owner's covered interest. A lender's policy protects the lender's covered security interest, not the buyer's entire Equity The owner's economic interest after relevant debt or claims are considered. See Chapter 15. Glossary. Policies contain exclusions, exceptions, conditions, and limits. Title insurance Protection against specified covered title risks, subject to policy terms and exceptions. See Chapter 7. Glossary generally addresses covered title problems rooted in the past; it is not a home warranty, property-condition inspection, or guarantee that an intended use is legal. S05 S06
A Bill of sale An instrument commonly used to transfer personal property. See Chapter 7. Glossary commonly documents transfer of Personal property Movable or other property not classified as real property under the applicable rules. See Chapter 2. Glossary included in a transaction. It does not substitute for a Deed An instrument used to convey an interest in real estate. See Chapter 7. Glossary conveying the real estate. A title commitment states the conditions and proposed exceptions under which an insurer is prepared to issue a policy; it is not itself identical to the final policy. Review required releases, identity or authority evidence, and listed exceptions rather than assuming that the word “commitment” means every condition is satisfied. S07 S06
Other ways title changes
Voluntary Alienation Transfer of a property interest, voluntarily or involuntarily. See Chapter 7. Glossary includes sale and gift. Involuntary alienation includes transfers through Foreclosure Enforcement of a security interest through authorized sale or legal process. See Chapter 7. Glossary, Condemnation The legal process used to exercise eminent domain. See Chapter 6. Glossary, or other legal proceedings. Property can pass by will (Devise A transfer of property by will under the applicable terminology. See Chapter 7. Glossary), intestate succession, valid survivorship, or trust administration. Probate A court-supervised estate process where applicable. See Chapter 7. Glossary is a court-supervised estate process, not a synonym for every transfer after death.
Adverse possession Acquisition of ownership by possession satisfying all statutory requirements. See Chapter 7. Glossary may establish ownership after statutory elements are satisfied. It is distinct from a prescriptive Easement A right to use another's land for a defined purpose without owning that land outright. See Chapter 5. Glossary, which ordinarily establishes a use right. Requirements can include actual, open, notorious, exclusive, hostile, and continuous possession for a specified period, with additional conditions such as tax payment in some states. The number of years is not a nationwide rule. S06
Foreclosure essentials
A mortgage or Deed of trust A security instrument commonly involving a trustor, trustee, and beneficiary. See Chapter 15. Glossary gives a creditor remedies against collateral. Judicial Foreclosure Enforcement of a security interest through authorized sale or legal process. See Chapter 7. Glossary proceeds through a court. Nonjudicial foreclosure uses an authorized power of sale and required statutory procedures. Availability depends on the instrument and state.
A borrower may have rights of reinstatement or Redemption Recovery of property or relief from enforcement by satisfying applicable obligations within an allowed period. See Chapter 7. Glossary. Equitable redemption generally concerns paying the obligation before the foreclosure is completed; statutory redemption may provide a post-sale right in jurisdictions that allow it. A Deficiency Unpaid debt remaining after application of collateral proceeds, subject to recovery restrictions. See Chapter 7. Glossary judgment concerns a debt remaining after applying sale proceeds and is subject to substantial limitations and exceptions.
A Deed in lieu A negotiated conveyance to a lender instead of foreclosure. See Chapter 7. Glossary of foreclosure is a negotiated conveyance to the lender; it does not automatically remove junior Lien A security claim or charge against property for an obligation. See Chapter 5. Glossary. A Short sale A sale involving lender-approved acceptance of less than the secured payoff, with liability issues separately resolved. See Chapter 7. Glossary involves lender-approved Acceptance Assent to an offer in the required manner without a material change that creates a counteroffer. See Chapter 10. Glossary of less than the full secured payoff from sale proceeds; release of the lien and release of personal liability are separate issues. Bankruptcy may stay enforcement. Agents must not promise debt forgiveness or tax consequences. S06
An owner buys a lender's title policy only. Does that policy automatically insure the owner's equity?