Understanding "Deeds"

When a borrower signs a promissory note, he/she is agreeing to pay the lender a specific amount of money according to certain conditions. A lender in order to protect his/her interests will require a borrower to sign a security instrument in favor of lender.

(PRWEB) July 7, 2004 -- We are a mortgage information dissemination company. In our day to day business we see a lot of misunderstandings related to deeds. We hope that this article about deeds along with the associated resources will help you in understanding it.

When a borrower signs a promissory note, he/she is agreeing to pay the lender a specific amount of money according to certain conditions. A lender in order to protect his/her interests will require a borrower to sign a security instrument in favor of lender. Lets talk about a type of security instrument known as Deed".

Deed as a security device plays a very important role in real estate purchase. It is an instrument that transfers ownership. Deed serves an important part in securing a note and offering protection to the lender.

A 'deed' is an instrument by which title of property is transferred from one person to another. It contains the names of the old and the new owners, and is a legal, signed and sealed document which influences the exchange of ownership from the seller to the buyer. It is an effective tool to settle the mortgage foreclosure case. A deed, although absolute on its face, when given as security for payment of a debt, is in actuality a mortgage.

Sometimes it is also known as title document.

There are several different types of Deeds. They are as following:

1. Administrators deed.

2. Agreement deed.

3. Security deed.

4. Title deed.

5. Executors deed.

6. Fee simple deed.

7. Guardians deed.

8. Personal representative deed.

9. Miscellaneous deed.

10. Certificate of title deed.

11. Contract deed.

12. Personal representatives deed.

13. Bargain and sale deed.

14. Special warranty deed.

15. Patent deed.

16. Covenant deed.

17. Assignment deed.

18. Composition deed.

19. Settlement deed.

20. Freehold deed.

21. Lease hold deed.

22. Deed of record.

Most common deed types:

1. Grant deed- It is a document which legally transfers title to a real property to a new owner. It is a deed which is always recorder with the county recorder. It has following sub types:

a. Gift deed.

b. Tax deed.

c. Court deed.

d. Trustee deed.

e. Sheriffs deed.

2. Warranty deed. http://www.mortgagefit.com/warranty-deed.html

3. Quit claim deed. http://www.mortgagefit.com/quitclaim-deed.html

Generally all deeds, whether a grant deed, warranty deed or quitclaim deed must have the following components in order to be valid:

1. The deed must be in writing, there is no such thing as oral deed.

2. The deed must conform to all the elements of state law for it to be a legal instrument.

3. There must be operative words of conveyance.

4. The parties must be named and identified as "Grantor" or "Grantee."

5. The parties must be competent to grant and capable to receive title.

6. If there is a change in the name after acquisition, both names should be set out.

7. Must be signed by all parties making the conveyance, being signed exactly as the names appear in the body of the deed.

8. Must be delivered with the purpose to pass title immediately.

9. Must be accepted by the grantee.

Other related deed terms:

1. Deed stamp. http://www.mortgagefit.com/deed-stamps.html

2. Deed in lieu. http://www.mortgagefit.com/deed-lieu.html

3. Deed of trust http://www.mortgagefit.com/deed-trust.html

There are several types of deed of trust. They are as following:

a. Purchase money deed of trust.

b. Open ended deed of trust.

c. Fictitious deed of trust.

d. Wrap around deed of trust.

Notarization of Deed: A borrower who is transferring the property should take the deed to the notary public. It means that the notary public has verified that the signature on deed is genuine.

Recording of Deed: A deed is also recorded in the land record office. This office is called by different names in different states. It is usually called as:

1. Countys recorder office.

2. Register of deeds.

3. Land registry office.

It is important for new buyers of property to record their deeds. Recording a deed gives "notice to the world" that a particular piece of property has been sold and the borrower should be guarded.

Cancellation of Deed: A deed is cancelled when the debt is paid.

If you have any other queries related to mortgage, feel free to visit this site http://www.mortgagefit.com

External resources:

1. http://www.mortgagefit.com/promissory-note.html

2. http://www.mortgagefit.com/deed.html

3. http://www.mortgagefit.com/foreclosure.html