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Title Transfer

Why Is Title Transfer Law?

You may have heard of title transfer law. There is a Latin phrase “Nemo dat quod non habet,” which translates to “No one can give what they do not own”. This forms the principle of this law.

Title transfer law exists to help transfer a property (known as a title) from one individual to another. As this process is not always straightforward, this law exists to make such transactions more efficient. It is imperative to understand title law when dealing with property.

Title transfer law developed in the U.S. in the early 20th century with the Sales of Goods Act of 1930. Sections 27 to 30 cover the laws and guidelines for transferring property.

It ensures that goods transfer from the rightful owner to a new owner whom the current rightful owner approves of. This is a necessary protection to maintain a transaction’s integrity.

Imagine if someone who was not the rightful product owner could sell that product to someone else. Imagine if both the seller and the buyer engaged in this transaction without the legal owner’s approval. We would rightly see this as an illegal transaction, which is why title transfer law is imperative, especially when transferring property.

Change in Ownership

Title transfer law governs the process of changing ownership of goods, including property. This can involve adding someone to the property register or removing an individual due to death, divorce, or other circumstances. Transfers may also occur as gifts to family members or to designate someone as an inheritor of your property upon your passing.

While you can handle the paperwork independently, consulting a lawyer experienced in title transfer law is highly recommended. An attorney can ensure the transfer is accurate, legally compliant, and free of complications, helping you navigate the process smoothly and securely.

How Real Estate Title Transfers Occur

Deeds facilitate the transfer of ownership and title of a property in the U.S. The deed signifies the transfer of ownership from the original rightful owner to a new rightful owner.

The seller’s lawyer or the buyer’s lawyer creates the deed. Both parties can each hire a lawyer to consult with one another and draft a desirable deed.

Each jurisdiction (state) likely has specific laws and guidelines regarding the title transfer of property. In some states, for example, a deed is only legitimate if a notary public and witnesses authorize it.

Legal advocates understand the parameters, laws, and guidelines regarding the title transfer of the specified jurisdiction. As such, they can assist with preparing an accurate deed. Failure to comply with the standards of the jurisdiction may result in the deed becoming illegitimate – which may cause further legal complications.

What Are the Types of Title Transfers?

For transferring property, there are different types of title transfers and title deeds.

Life Estate Deed

This deed transfers the title to another person or group while all individuals are alive. When the person or all members of the group die, the property title can transfer to another person or group via a Fee Simple Deed.

Fee Simple Deed

This deed only grants the title of the property to a new owner. Additionally, the original rightful owner does not have to grant the new owner any guarantees, warranties or covenants.

General Warranty Deed

This is the most common title transfer for most properties. The first step requires the current rightful owner to authorize documentation that proves he/she is the current rightful owner. This authorization shows that the current rightful owner has the right to transfer the property to whomever she or he desires. Once transferred, the new owner has complete access to the property without caveats.

Statutory Warranty Deed

This is simply a shorter version of a General Warranty Deed available in some jurisdictions.

Special Warranty Deed

This covers the same scope as the General Warranty Deed. It states that the grantor ensures that the property remains unencumbered when the grantor is the rightful owner. These deeds are usually used for commercial real estate.

Quit Claim Deed

This title transfer does not claim any warranties. The purpose of this deed is for someone who once staked a claim or interest in a property to relinquish said claim or interest in the property.

Personal Representative’s Deeds

When an estate transfers property to an heir or a buyer, a Personal Representative usually manages the title transfer. This Personal Representative has his/her own specialized deed that is usually similar to a Fee Simple Dead, because it does not grant the new owner any guarantees, warranties, or covenants.

Why You Need A Lawyer

The title transfer process varies and contains several complexities. For the most favorable results, to avoid legal complications and to ensure a legitimate transaction, consult with a legal professional knowledgeable of the details of title law. This individual also knows the specific laws, guidelines, and standards for the jurisdiction where the transfer should take place. Finally, the right lawyer can also guide you on the ideal deed or agreement needed for a title transfer to please all parties involved.

Work With an Experienced Local Lawyer

If you need to conduct a transaction of a good or property, then consult with a qualified lawyer experienced in title transfer law. You may find a lawyer title company that can help you with your needs.

Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!

About the Author

Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.

With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations. Contact Aaron at [email protected] for article suggestions, collaborations, or inquiries.

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