Difference Between “Title” & “Deed”?

April 28th, 2023


Title refers to ownership – could be a title for a position or a title for real estate. Titles may be held jointly or severally by two or more people. Organisations, businesses, and trusts may also have titles in which all participants share responsibility and ownership.

Titles are transferred through the use of deeds. A deed is a legal document used to transfer ownership or title of property from one person to another or to a group of people. Both the person selling and the person buying the property rights or title must sign and register a deed.

After a buyer and a seller agree to carry out a real estate transaction under specific terms and circumstances, they must formalise the procedure to show that the ownership of the relevant property has changed. After that, they must create a document called a sale deed that includes every single aspect of the transaction. This document must be registered in order to be considered legally binding under the Registration Act of 1908.

A sale deed becomes legally binding evidence that the buyer has acquired ownership of the property the moment it is registered. Additionally, an agreement must have at least two parties. This is the reason a sale deed includes all information pertaining to the buyer/buyers and the seller/sellers. Despite the fact that its main function is to declare that a certain piece of property has been transferred in the name of a certain individual.

Due to the fact that this document establishes the buyer’s ownership, it automatically becomes a declaration of the property’s title, thus the term title deed. Additionally, the parties involved in the transaction must demonstrate the asset’s prior ownership and title transfer at the time of property registration.

Difference Between  A “Title” And  A “Deed”

Definition of Title

A title is a formal legal claim that grants ownership rights or the ability to transfer an interest to another party through a deed. It describes the owner of the property. It is a technique of communicating to others that someone owns something and is authorised to use it.

Definition of Deed

The transfer of ownership of a property or proof of ownership is shown via a deed. It is a legal document that details the title, or ownership, of a person. Title, or ownership, can be transferred from one person to another through the use of a deed.

Role of Title

A title identifies who has ownership of a certain object. It is a phrase used to describe someone who is a property owner. It makes clear to the public a person’s legitimate ownership rights.

Role of Deed

The deed is always physical in the form of a document. It is a formal declaration that details the ownership of the property. The deed must be used if the title is transferred through a sale or gift. The buyer will get the sale deed or gift deed in a documentary form after the purchase or gift of a property and its registration, which will grant the buyer the title.

Relationship between “Title” and “Deed”

Despite the fact that the words “title” and “deed” are frequently used synonymously, they have different meanings. A deed is the actual document that transfers ownership of the property from one person to another, whereas a title refers to the legal right to ownership of a piece of property.

Types of Deeds

Deeds come in a variety of forms, including special warranty deeds, quitclaim deeds, and warranty deeds with warranties. Before transferring ownership, it is important to thoroughly evaluate the legal ramifications of each kind of deed.

Importance of Title and Deed

The title and its subsequent deed are both significant. The legal record of the sale deed proves who owns a piece of land. It is challenging to sell, transfer, or mortgage the property without a clear title and a deed that has been legally executed.

Final Thoughts

For anybody who wishes to purchase, sell, or transfer real estate, it is essential to comprehend the distinction between a title and a deed. To make sure that the title and deed are accurate and enforceable, it is advised to obtain expert advice, such as from a real estate attorney.

Read More: What is Title Deed of Property? All You Need to Know!

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