Deeds are a standard component of any real estate transaction. Those selling or buying property typically need to execute a deed to change legal ownership records.
Those establishing estate plans may also execute deeds to prepare for the transfer of real property to their loved ones after their death. Sometimes, people execute deeds to add a new romantic partner or an adult child to the title for the property where they live.
The prevalence of legal documents online has given some people a false sense of confidence when it comes to conducting real estate transactions. They may try to print up and execute deeds without support. Those deeds may not fulfill all state requirements.
What are the basic requirements for a valid deed?
1. The deed must be in writing
Electronic deed documents are readily available online, but they are not valid and enforceable unless people print them and execute them as physical documents. A deed must be a written instrument, not an electronic document.
Audio recordings and video footage also cannot serve as deeds. A physical, written deed is necessary to change the title records for a property.
2. The deed must have all the appropriate signatures
There are several types of deeds that people may choose to execute. The most common include quit claim deeds, warranty or statutory deeds and bargain and sale deeds.
Typically, deeds require signatures from the current parties who hold title and anyone assuming title who is not already an owner of the property. The spouses of the owners may also need to sign. People need to physically sign and date deeds or authorize an agent to do so on their behalf.
3. The deed requires proper notarization
State law requires a witness to validate the identities of those involved in real estate transactions. Otherwise, fraud could potentially deprive people of assets they have invested in for years.
A notary public generally needs to witness the deed signing process. They must also sign the document and must stamp the deed with their state-issued seal. A properly executed deed still requires recording for it to update the official records of property ownership maintained by the state.
People need to be careful about the language included in deeds and the process of executing them when completing real estate transfers. Drafting and signing deeds can increase the likelihood of success during a real estate transaction.