Deeds are legal documents that show ownership of a specific real estate property. A deed must be signed by the seller and the buyer in order for the transfer of ownership of the property to take place. Phrases used to describe the transfer of a property include: grant, assign, warrant, convey. Regardless of the words used, they all apply to the process of transferring ownership from the former property owner to the new one.
A deed and bill of sale are similar in that they both provide written evidence of the transfer ownership. The only difference is the bill of sale applies to a tangible object and not real estate. A signed deed shows the sale’s date.
This legal document allows an owner of real estate to legally terminate their rights or claims to that real estate by transferring all rights and claims to another individual or entity. A common scenario would be in a divorce situation where there is joint ownership of real estate. While dividing up the assets, it is decided that the real estate will be transferred to one of the homeowners. One of the homeowners acts as the grantor and releases all claims and rights to the real estate to the other homeowner, the grantee. This termination of rights and claims by the grantor would allow the grantee full ownership of the real estate. Quit claim deeds are also used when gifts are given. It grants the receiver of the gift some certainty that the giver of the gift will not try to lay claim to the gift in the future.