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Understanding deeds and how they work is an important part of acquiring real estate. Since a deed is a legal document, you’ll want to ensure that you fully understand its purpose and meaning before completing any real estate transaction.
On today’s show, Natali and I are discussing everything you need to know about deeds! We’ll talk about the different types of deeds, how they work, and in what scenarios each type is applicable. Don’t miss episode 301 of Investing in Real Estate!
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When you close on you rental property, the title company will supply you with a huge stack of documents to sign. One important piece of paperwork is the deed. A deed is a document that is signed by both the seller and the buyer, signifying the transfer of ownership.
A deed is recorded at the county level, which oftentimes has slow moving processes. Your title company will often email you a copy of the deed, but it’s still important to obtain the paper copy. There are two main types of deeds: a grant or warranty deed, and a quit claim deed. Although both types of deeds transfer ownership, each of these have different purposes.
A grant or warranty deed contains warrantees of title—this means the title company conducts an extensive search, ensuring that the buyers actually owns the property and has the right to sell it. A quit claim deed does not contain these guarantees, but can still be useful under certain circumstances. For example, we have used a quit claim deed when transferring a property that we own to an LLC. You can also use this type of deed if you're working with someone you feel you can trust.
On today’s show, we’ll explain when to use each of these deeds. You’ll learn about costs, insurance policies, and county records. This is an important concept to understand; you won’t want to miss this episode!
If you’re ready to begin building a passive income through rental real estate, book a FREE call with our team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.
On this episode you'll learn:
- What is a title insurance policy used for?
- Why do title companies conduct a title search?
- What is a due on sale clause?
- And much more!