Common Types of Deeds When Buying Land

The world of land real estate is full of jargon unique to the industry. If you’re new to buying land, you may have spent a fair amount of time Googling terms or asking your agent to further explain terms, especially when it comes to titles, types of deeds and their provisions.

If you’ve heard land agents or lawyers talk about “title,” they are referring to who has legal ownership and the legal right to possess a piece of property. It is the bundle of rights that dictates who has legal or equitable interest in the property. It also details the limitations on ownership. A title is a concept used to describe a bundle of rights afforded to a land owner. The bundle of rights include:

• The right of possession
• The right of control
• The right of exclusion
• The right of enjoyment
• The right of disposition

A deed is the physical, legal document that passes those ownership rights from the seller to the buyer. Every time property is purchased or sold, a deed needs to accompany the transaction. To be legally valid, the deed must be signed, notarized, and filed on public record. The deed is the buyer’s guarantee that the seller actually owns the property free and clear with no liens, encumbrances, easements, or clouds on the title. The deed contains the names of the seller and buyer along with the complete legal description of the property.

Pat Porter, broker at RecLand Realty, takes a deeper look at the main types of deeds and how they vary in terms of the kind of protection they provide property owners.