Deed
Also known as: Property Deed, Title Deed, Warranty Deed
A legal document that transfers ownership of real property from one party (the builder) to another (you). The deed is recorded with the county to create a public record of your ownership.
Detailed Explanation
At closing, the builder signs a deed transferring ownership of the home and land to you. This deed is then recorded with the county recorder's office, creating a public record that you are the legal owner.
The most common type in new construction is a special warranty deed, where the builder guarantees that they have not done anything to compromise the title during the time they owned the property — but does not guarantee against issues that arose before they owned it.
A general warranty deed provides broader protection, guaranteeing clear title for the entire history of the property. Some buyers negotiate for a general warranty deed, though builders often prefer to give a special warranty deed.
In Your Contract
Your purchase agreement should specify the type of deed the builder will provide. Look for "deed," "warranty deed," or "conveyance" in the closing section.
Key Points
- 1Transfers ownership from the builder to you.
- 2Recorded with the county as a public record.
- 3Special warranty deed: builder guarantees only their ownership period.
- 4General warranty deed: broader protection for entire property history.
- 5Review the deed before closing to ensure accuracy.
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