Deeds and The Transfer of Property

Question 1

When a buyer purchases a parcel of property, they are acquiring an interest in that property along with all the rights attached to that property.

When an owner sells a piece of property, the owner is choosing to transfer their ownership rights (the title) to the new owner. The title is the actual ownership of a real property that includes the bundle of rights in which a party may own a legal or equitable interest. The title is not an actual document. (More on that in just a moment.)

Conveyance
An instrument of conveyance (often simply referred to as conveyance) is a tool (or instrument) that transfers a grantor’s interest in real property, such as a home or a commercial building.

When an owner of real property wants to convey their ownership to someone else, they use a conveyance. Another word for conveyance, which you’ll hear quite often, is deed.

What Is a Deed?
A deed is the legal document that transfers real estate title from one party to another. The purpose of using deeds is to have official records showing when property changes hands. It proves that the holder of the deed has ownership of the property.

All deeds must be in writing. Handshakes and pinky swears aren’t enough! ❌🤝

Before There Were Deeds
Way back in the Middle Ages, deeds weren’t used for the transfer of property. Instead, they used a ceremony called the livery of seisin. The buyer and seller would simply walk around the boundaries of the property together, then the seller would bend down, grab a handful of dirt, and hand it to the buyer. This chunk of dirt symbolized the property in its entirety and handing it over to the buyer represented the conveyance of ownership rights.

These days, conveyance is more official and less dirty, thanks to the statute of frauds. First passed in 1677 by the English parliament, the statute of frauds required certain kinds of contracts (like real estate contracts!) to be in writing and signed.

And we still do that today. Just a little piece of history for you.

Deeds and the Real Estate Agent
Okay, so you won’t actually be preparing deeds for anyone during the course of your work as a real estate agent. That’s a job for a licensed real estate attorney.

Still, it’s important to know the purpose of deeds, different types of deeds, and the elements included in your average deed. This will make you a great resource for your clients when they want general information on the subject.

And oh yeah, this stuff is on the exam!

Answer 1

Acquisitions and Transfers