How to Transfer Property Title

Buying or selling a home involves transferring the property's title. A deed is a document that transfers an owner's interest in a home to an individual or a business. The party transferring property is a seller, or grantor, and the party receiving ownership is the buyer, or grantee. A deed can transfer property title without a sale or exchange of money, such as with a gift or as part of a divorce agreement. Recording the deed is the final step in transferring property title.

Property title transfer via a deed is known as conveyance. A home is not legally conveyed unless the deed meets certain requirements. The specific requirements a deed must meet may vary by state, but in general, the deed must contain at minimum:

• A detailed legal description of the home being transferred.
  
• The legal name of the person receiving title or the business entity's name.
  
• The grantor's signature, acknowledged by a notary.

A grantor must be of legal age and have the soundness of mind to transfer property. The grantee must be identified with accuracy. For example, names must be spelled correctly and a past name, such as a maiden name, may be included. If transferring to more than one individual, such as various relatives or a business partnership, the manner in which the co-owners hold title to the home, or vesting, must also be included. The rights to title being transferred, such as fee simple or life estate, may also need to be on the deed. It also may need to state what the seller received in exchange for the property, such as a monetary amount or "love and affection," if gifted. The item given in exchange is known as consideration.

Although you can draft a deed using templates available online or from a title company, consult a real estate attorney before signing away your real estate or accepting a property transfer. An attorney can facilitate a legal transfer of title by ensuring:

• The deed document is appropriate for the type of transaction.
  
• The correct parties have signed the deed.
  
• The manner in which the new owners hold title, or vesting, is accurate.
  
• The precise interests being conveyed are listed on the deed.

In addition to preparing the deed, an attorney can also record, or "file," the deed with the appropriate government office. In many states, the grantee can choose whether to have the deed filed with the local land records office. However, recording the deed adds an additional measure of protection for the grantee, as it puts the public on notice of the property transfer. The order in which it's filed relative to other documents, such as a mortgage or other lien, also determines the priority of claims to the property's title.