dumb question #2 - Posted by mia

Posted by JFinke KC on July 11, 2002 at 07:49:32:


The bank does not hold a deed. Simply put, a deed is a document that transfers ownership of property from one individual to another. I think you are equating it with a document like a car title which is not the case. When you purchase a property a new deed will be created by the title company. Esentially, the deed is used as a legal document transfering the interest in the property from the seller to the buyer. This new deed is then recorded with the Recorder of Deeds office at the county courthouse.

I don’t really do Lease/Options, so I can’t comment on putting a deed into escrow. This would seem to only be advantageous if you were buying on a l/o, but I really don’t think it would be necessary.

This was a very brief and simple example of the deed process. This is one of the basic pieces of knowledge you should have before buying any property, whether its your own residence or investment property. I would suggest to you, go to your local library or bookstore and read a few books on buying your first home and/or basic real estate. You need this basic knowledge prior to investigating any real estate purchases.

Good Luck,

JFinke KC

dumb question #2 - Posted by mia

Posted by mia on July 10, 2002 at 18:22:50:

Please forgive my ignorance.
When doing a l/o, you should place the deed in escrow.
Where do you get the deed? Doesn’t the bank have it? I have never owned a house or done a deal, so I am clueless (obviously).