Did a seller just hand you the deed to a piece of property? Before you accept the deed, you must prove that the seller has ownership to the title. What you actually need is the title to a piece of property. 

First, let’s explain the difference between a deed and a title.

What is a Title?

A title is the concept of owning real estate – it’s not a piece of paper. The title (ownership) of the property can be transferred from one person to another. You can transfer a title through:

• Deed
• Will
• Inheritance

What is a Deed?

A deed is a document used to transfer a title from one person to another. Think of this like a receipt you receive from the bank after you transfer money. In Florida, a deed requires signatures from:

• Person transferring the property
• Two witnesses
• Notary

Once signed, the deed must be delivered to the person receiving the title and then recorded (usually in the local courthouse) to officially transfer the title. At that time, the deed itself has no meaning.

Important Point: the deed only transfers the title when the person signing the deed also OWNS the property. Consider this scenario: If Sarah (seller) deeds a property to John (buyer), but Sarah’s uncle Mark actually owns the property according to the title, the deed is worthless.

Bottom Line: Before you buy a piece of property, work with a title company to prove the deed is being issued by the property’s true owner. The team at Clear Title Clear Title, a title company in Pensacola, Florida, can help you through this process. Clear Title is led by Board Certified Real Estate Attorney Stephen R. Moorhead.

To schedule a meeting with the title experts in Pensacola, contact us today at (850) 202-8518 or visit ClearTitlenwfl.com.