What is a Deed of Property?

A property deed is a legal document that proves who owns a piece of real estate - such as land, a house, or any physical structure on it. It is one of the most important documents in real estate because it legally transfers ownership from one party to another.

What Is a Property Deed Used For?

A property deed is used during the sale or transfer of real estate. It includes the legal names of the buyer and seller, describes the property, and states that ownership is being transferred. Once signed and delivered to the buyer (grantee), the deed becomes proof of ownership.

What Information Does a Property Deed Contain?

For a deed to be legally valid, it must include:

• Full legal names of the buyer (grantee) and seller (grantor)
• A complete legal description of the property
• A statement confirming the transfer of ownership
• Signatures of the parties involved
• Delivery and acceptance of the document

A deed may also specify whether it is a publicly recorded deed or a private transfer.

Different Types of Real Estate Deeds

There are different types of deeds in real estate, based on how much protection they offer the buyer:

General Warranty Deed

A general warranty deedis the most common and provides optimal protection for the buyer/grantee. It promises that the seller/grantor has the legal right to sell the property and is free of any liens or encumbrances. A general warranty deed also protects the grantee's heirs from anyone coming along and making a prior claim to the land and buildings. The promises contained within a general warranty deed are called "covenants."

Special Warranty Deed

A special warranty deed, however, is a different animal. It is essentially a general warranty deed with less protection. The grantor/seller only guarantees that the title is valid as long as they have held it, meaning anything that happened before them owning the property is off the table. For example, a relative of a prior owner could crawl out of the woodwork and make a claim to your property after you have purchased it. Because the seller/grantor only guaranteed that the title is clean during their ownership, you could potentially lose the land.

During a real estate sale, many buyers will insist on a general warranty deed to protect themselves against title defects from previous owners that could affect their legal rights to the property.

Quitclaim Deed

A quitclaim deedoffers the seller virtually no protection at all. The grantor makes no promises that the title is clean. If the title is clean, a buyer/grantee may consider the quitclaim deed as good as the general warranty deed, but if there are any defects in the title's past, there could be serious problems down the road. In which case, the grantee would have no legal recourse and may lose the property.

Special Purpose Deeds

Along with the three types of deeds above, there are also special-purpose deeds most often used by the courts to determine land ownership and transfers. They offer the grantee no protection against a clean or defective title and work much like a quitclaim deed. Some special-purpose deeds include:

• Administrator's Deed - The courts use an administrator's deed when someone dies without a will. The court will determine who the land belongs to and create a deed to transfer ownership.
• Executor's Deed - An executor's deed is when someone dies with a will, and the executor (sometimes court-appointed) creates a deed to transfer property ownership.
• Sheriff's Deed - A sheriff's deed is used when a piece of property goes up for auction, and the highest bidder wins. Whoever has taken possession of the land will furnish the winner with a sheriff's deed.
• Tax Deed - When someone loses their property due to unpaid taxes, the town or courts will create a tax deed to transfer ownership.
• Deed in Lieu of Foreclosure - When a property owner cannot pay their mortgage, they may provide the lender with a deed in lieu of foreclosure, which is cleaner for everyone. The lender will take possession of the property, close the mortgage, and then sell the land.
• Deed of Gift - When someone gifts a piece of land to another person, they will create a deed of gift to transfer the title.

What Is an Assignment of Deed (and When Is It Used)?

An assignment of deed is used when property ownership is transferred from one party to another before the original agreement or loan is fully completed.

Common situations include:

• A homeowner sells the property before the mortgage is fully paid off
• A court transfers the property from the debtor to the creditor after a legal judgment
• A creditor takes ownership due to unpaid debt or foreclosure

This legal document officially reassigns the deed and is also stored in public records, making it traceable in property history searches and background investigations.

An Assignment of Deed of Trust is a related document specifically used when a lender transfers their rights in the mortgage or deed of trust to another lender or entity.

Deed vs. Title - What’s the Difference?

Many people confuse these terms, but they are not the same. Here is the difference of a deed and a title:

• A deed is a physical, signed legal document proving property ownership.
• A title is the legal right to own, control, or sell the property — it is a concept, not a document.

Example: You receive a deed when you buy a home, but what you legally possess is the title to that home.