Before deciding to get involved in any real estate venture, it is important to have a firm grasp of the concept of deeds. If you are someone who is about to engage in a real estate deal by either transferring property to another person or acquiring property from another person, it is imperative that you comprehend the significance of deeds. Now, a deed is nothing but a statutory piece of document that comprises the legal aspects of any real estate transaction. A grant deed effectively states the condition of the title of the property in question. It states that the property subject to transfer of ownership is free from any claims or encumbrances.
A grant deed is a lawful contractual document that holds the status of the title of a particular property. It is especially crucial to understand the conditions of a grant deed if you are someone who has encountered a property through a tax or foreclosure sale.
The contents of a grant deed would include the name of the individual or entity that is granting the transfer of property, a legitimate description of the property that is being transferred, and the name of the individual or entity to whom the property is being granted. Such a deed should positively contain the signature of the grantor, without which it will hold no legal value.
The concept of deeds is fairly common in real estate markets. Any transfer of property or title will require a legal document stating the particulars of such a deal. This legal document is the deed.
Now, a grant deed is a legal agreement that states the particulars of a deal which includes the transfer of property from one person or entity to another. It acts as written proof that with respect to such a transaction, the transferor owns a piece of property that is without any burdens or liens, and the transferee, on the acquisition of the property, is at liberty to further sell or transfer it to some other person or entity. It should be noted that a property that has been transferred using a grant deed usually does not require revaluation in terms of property tax.
A grant deed essentially acts as a form of insurance whereas the transferor assures the transferee that the property being transferred is free from any defects and encumbrances and hence has a good title.
