Posted by js-Indianapolis on August 27, 2003 at 23:08:32:
Good to know. Thanks.
deed - Posted by bill
Posted by bill on August 25, 2003 at 12:45:36:
Is a deed like a car title? Does a property owner have a deed and then sign it over to you or does a new deed get created everytime a property is sold? What happens to the previous deeds? Do they just become nothing (junk paper)? Or does a deed (the same sheet of paper) get passed on and on as sales happen?
Titles 101, and 201 - Posted by js-Indianapolis
Posted by js-Indianapolis on August 26, 2003 at 03:30:48:
This should be in a RE FAQ section, as it gets asked once a week. I asked the same thing when I started a year ago. I figured the bank held title until the loan was paid off, and the owner had some ?pink slip? just like a car loan. Not the case.
-Is a deed like a car title?
No, not at all. Well, aside from they’re both paper and ink. Aside from that, no.
-Does a property owner have a deed and then sign it over to you
NO, they “hold title”. Holding title meaning they have and interest. The title is not a physical anything.
-or does a new deed get created everytime a property is sold?
Exactly
-What happens to the previous deeds? Do they just become nothing (junk paper)?
They become worthless the moment after they are recorded. Recording a deed will put you “on title”. Emphasis on the quotes again, as you don’t get a pink slip from the recorder. Your name will show up next time someone does a title search as deeded owner or perhaps called owner of record.
Bonus info-
If you understand all this, then you can now figure out in what way each deed transfers “title”.
Quit claim-as it would imply, the owner quits claiming any equitable interest in title.
Warranty Deed-owner is warranting clear title
Special Warranty Deed-REO’s issue this. From what I understand it’s some special deed that warrants title to the best of their ability. I?m fairly certain if a lien comes outta no where, and attaches, the bank has protected themselves by saying ?we?re special.? Apparently, bank’s are special and get to act outside the law? I’m unclear at just how special it is. Perhaps someone could write a little Title Titles 301.
There are tons more titles, and it?s all in the name.
You get the idea though, just think about it literally, and the name of any deed you come across will tell you what’s happening when the previous owner transfers “title” (his interest) in the property.
Homework-
Tell me what a Warranty Deed to Trustee does.
Answer-
Starts a debate online about the correct way to do a sub to deal.
Re: Titles 101, and 201 - Posted by firefox
Posted by firefox on August 26, 2003 at 18:42:43:
Special warranty deeds only warrant title during your period of ownership. General warranty deeds warrant title back to the beginning of time. An investor should only offer a special warranty deed when selling.
Re: Titles 101, and 201 - Posted by bill
Posted by bill on August 26, 2003 at 08:20:48:
Thank you very much for the lesson. I appreciate it.