Most people think the escrow documents provided after purchasing a home are complete. Here I will reveal essential property documents that are often overlooked.
Revealing The Most Essential Property Documents
The main types of essential property documents: Warranty Deed, Grant Deed, and Quitclaim Deed.
Warranty Deed and Grant Deed
A Warranty Deed provides comprehensive assurance of ownership over the entire history of the property. Hence, buyers are assured of clear ownership rights by this essential property document.
However, a Grant Deed, only guarantees the period during which the seller owned the property. The buyer must accept the risk if any issues arose before that time. Therefore, Title Insurance is an essential property document to protect the buyer’s rights.
It depends on the laws and practices of each state to choose which one. In California, the Grant Deed is a commonly essential property document.
Understanding essential property documents to protect your interests.
Quitclaim Deed
People commonly use this essential property document for correcting errors or making minor adjustments. In fact, its warranty scope is very limited. Common uses include:
- Correcting name errors in the title
- Adding or removing names from ownership
- Transferring property between family members
- Resolving issues related to inherited property
Introducing Essential Property Documents Mortgage Applicant Should Know
Trust Deed & Promissory Note
People use a Trust Deed (Deed of Trust) when they have a mortgage loan. This essential property document provides important protections. Specifically, it allows the lender to foreclose on the property if the borrower fails to make payments.
A Promissory Note records the loan amount, interest rate, repayment schedule, and conditions for handling missed payments.
Reconveyance
When a mortgage is fully paid, the lender issues the homeowner a document called “Reconveyance”. Furthermore, this essential property document is crucial and must be submitted to the County Recorder’s Office for recording.
If not recorded, the debt obligation remains legally attached to the property. Consequently, this causes complications if the homeowner wishes to sell or refinance.
Mastering the procedures for essential property documents is crucial when owning a home
The Truth About Key Steps For Essential Property Documents
Following these steps ensures that essential property documents are legally recognized and protected.
Sign
All involved parties, including the seller and buyer, need to sign the essential property documents.
Insure
Purchasing Title Insurance helps protect against legal risks, such as disputes or outstanding debts.
Notary
Essential property documents must be notarized by a certified notary. Accordingly, this step verifies that the parties have signed legally and willingly.
Record
Afterwards, the essential property documents must be filed and recorded at the County Recorder’s Office. This step officially registers the transaction. Additionally, the County Recorder’s Office is where they can request a legitimate copy in case of loss.
Conclusion
Understanding essential property documents and the processes involved is crucial to ensuring ownership and protecting your interests. Besides, having this knowledge gives you greater confidence in any real estate transaction.
Read more:
👉 Frequently Asked Questions For Selling, Buying, Investing And Mortgages: https://www.danguard.com/faq/
👉 The Basics of Real Estate Title Deeds https://www.stimmel-law.com/en/articles/basics-real-estate-title-deeds
👉 Visit our Tiktok channel https://www.tiktok.com/@victoriamaidang/video/7363999038389210399?is_from_webapp=1&sender_device=pc&web_id=7363625605076928032
👉 Loan Officer’s BEST ADVICES On How To Buy The First Home https://www.danguard.com/loan-officers-best-advices-on-how-to-buy-the-first-home/
👉 Why Should You Buy Everything With Credit Cards https://www.facebook.com/share/p/eaiQxgxgYaN5qQdc/
👉 Eye-Opening: Astonishing Story of a HIGH-TECH wire transfer scam https://www.youtube.com/watch?v=Spa1Y2kgdNw
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