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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 a 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

The premise of title transfer law is a change in ownership of a good, including property. Change in Ownership is a statement regarding the transfer of property. This can include adding an individual’s name to the property register. It can also include removing an individual – such as with death, divorce or otherwise. You may also wish to transfer ownership to a family member as a gift, or, you may desire to add someone as an inheritor of your property upon your death.

Although you can file the necessary paperwork on your own, it is highly advisable to consult a lawyer well-versed in title transfer law. A lawyer can ensure accurate and legal transition completion and make sure a transfer occurs smoothly without legal complications.

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 remained unencumbered when the grantor was 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 with 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!

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