What is Property Deed Drafting?
A property deed is a legal document transferring ownership of a property from a seller to buyer. It can also be used to show proof of property ownership.
To be legally valid, a property deed needs to include key terms and be drafted professionally. This is why it’s common for real estate lawyers to draft property deeds for clients.
Read the rest of this article to explore what’s included in a property deed, how to draft it, and how a qualified lawyer can assist you with the property deed drafting process to give you peace of mind that it’s clear and legally sound.
What are Common Key Terms in a Property Deed?
A property deed usually contains the following important information:
- Property description. The deed should include details about the property, such as its size and physical address.
- Property history. There can be information about the property’s previous owners and previous purchase price. This section should also include any mortgages or bonds associated with the property.
- Restrictions. If there are limitations on property usage, such as due to zoning laws, these must be stipulated.
- Owner details. Both the current and new owner’s information, such as their full legal names and addresses, must be included in the deed. They must be accurate to prevent title issues.
- Consideration clause. This clause explains the property purchase price. However, if the property is transferred to a buyer for tax purposes or between family members, it can list a nominal amount or different value exchange.
What are Property Deed Drafting Tips?
When drafting a property deed, you should pay special attention to the following tips.
Select the Right Deed
Before drafting a property deed, you must choose the right deed. There are different types of deeds, with the following being the most common:
- Quitclaim deed. This transfers ownership interest the seller has in the property, without them making any warranties or guarantees to the buyer.
- Warranty deed. This is a guarantee that the property seller owns the property free of any liens or defects. A warranty deed offers the most protection to the buyer.
- Special warranty deed. In this deed, the seller guarantees that the property title had no defects during the period in which they owned the property. It doesn’t guarantee that no issues existed prior to their ownership term.
Get it Notarized
It’s common in most U.S. states for the property deed to require the grantor (person selling the property) to sign the property deed with a notary public present. This makes the deed valid. Some states require that a witness or two also be present.
Record the Deed
Most U.S. states require that the property deed be filed with the land records office in the same jurisdiction where the property is located. Every jurisdiction’s recording act specifies what recording requirements you need to follow. Since they can vary, it’s important to follow all applicable local regulations.
Store it Safely
Should the property deed be lost, it can result in complex court proceedings to clarify ownership. Make sure you store it in a safe place with your other real estate documents.
Provide a Legal Property Description
You should be thorough when writing the property details in your deed. They should include block numbers, property boundaries, lot numbers, and other information required by law.
Consider the Jurisdiction
Since real estate laws can vary quite a bit in different jurisdictions, down to specific formats that the property deed needs to be in, it’s important to consider what’s legally required prior to drafting a property deed.
Include a Granting Clause
This is a clause that states the grantor’s interest in selling or transferring the property. It clarifies the seller’s rights when legally selling the property.
What’s the Difference Between a Property Deed and Title?
Although a property deed and title are terms sometimes used interchangeably, they are not the same thing. While a property deed is a legal document establishing who owns a property, a title is the concept of ownership granted by the deed. Whenever you intend to purchase a property, both documents are legally required.
Why Do You Need a Lawyer for Property Deed Drafting?
Although you don’t always need a lawyer to draft your property deed, this usually depends on the jurisdiction. Hiring a lawyer has several benefits, such as the following:
- A lawyer will draft a valid and legal deed. They know all the requirements for drafting it correctly, such as the right wording and execution processes.
- They’ll determine the best type of deed for your specific property and situation, depending on the protection you require.
- They’ll help you avoid expensive mistakes, such as incorrect property descriptions or names.
- They’ll search for any title issues, such as potential liens, that could affect the transfer.
- They’ll use clear language to minimize your risk of disputes.
- They’ll align the property deed with all local laws so that it remains compliant.
- They’ll provide liability protection, such as if warranties are included in the document.
Where to Find a Lawyer for Property Deed Drafting
If you need to hire a lawyer for property deed drafting, you can find a reputable lawyer on an online legal platform. On ContractsCounsel, one of the largest online legal marketplaces that gives you access to a network of vetted lawyers, you can easily connect with a qualified lawyer to draft your property deed.
Here are the steps to follow when requesting a legal drafting of your property deed.
1. Go to the ContractsCounsel marketplace, where you can post your project for free.
2. Wait for bids. Instead of having to research the best lawyers in your location, you’ll receive multiple bids from lawyers directly on the platform who can assist you.
3. Once you receive the lawyer bids, you should review the lawyers' profiles. There’s lots of info on the platform to help you choose the best lawyer, such as their location, client ratings, years of experience, and field of expertise.
4. Connect with a lawyer you think is best suited to your requirements and hire them to draft a legally valid property deed.
