RE: Deeds and Title transfer

Title to real estate means the right to or ownership of real estate.
A person who holds title would if challenged in court be able to recover or retain ownership or possession of a parcel of real estate

Methods of transferring title
Voluntary Alienation
Involuntary Alienation - Escheat; Eminent Domain; Foreclosure; Adverse possession
Devise and descent

Voluntary Alienation and Deeds
Deed is a written instrument by which an owner of real estate intentionally conveys the right, title or interest in a parcel of real estate to someone else.

A GRANTOR is the person who is transferring title to the property to someone else
A GRANTEE is the person receiving title to the property

General warranty deeds: Provide the greatest protection of any deed and the grantor is legally bound by certain covenants or warranties

Covenant of seisin - Possession
Covenant against encumberances - free from liens or other encumberances
Covenant of quiet enjoyment - Title is good against 3rd party claims
Covenant of further assurance - I will provide any documents you need to defend your claim
Covenant of warranty forever - I'll do this forever

The guarantees extend back to the origin of the property. Grantor defends the title against anyone who may previously have had a claim on the property - including himself.

Special warranty deeds - Guarantees that the grantor received title and nothing bad happened during his ownership but makes no promises about what happened before

Bargain and sale deeds - I own it but make no guarantees

Quitclaim deeds - I don't know if I own anything but if I do - you can have it

Quitclaim deeds are frequently used to cure a defect - a cloud on the title

Good Title
Marketable title - sales contracts require the seller to provide the buyer with good and marketable title to the property

Marketable title
- Has no serious defects and does not depend on doubtful questions of law or fact to prove its validity

- Does not expose a purchaser to hazard of litigation

- Can convince a reasonably well-informed and prudent purchaser acting on business principles and with knowledge of the facts and their legal significance that he/she could sell or mortgage the property at a later time

Other types of good title
Insurable title - One that reputable title insurance company would insure
Title of perfect record - No defects of any kind in the public record

Title Searches & Public Records
public recorcds contain information about many of the claims that may exist with respect to a parcel of real estate.

Title searches are regularly done to ensure that each transfer of the property was completed properly and that each past lien has been removed

Title Insurance
Covers against any defects that could be found in the public records, forged documents, incompetent grantors, incorrect marital statements and improperly delivered deeds

Lenders require insurance coverage. The buyer may also obtain coverage of their own
In the event of a claim on the property, the insurance company will typically pay all your legal expenses to defend the title and to get any documents necessary to perfect title.