If you are new to the real estate world, the legal jargon of realtors and lawyers may sound overwhelming. Whether selling or buying real estate, you must understand the legal terminology to better comprehend the buying and selling process.
Even though “title” and “deed” are closely related, they are not similar. Today, we are here to help you become a more informed buyer as we delve into this topic.
What is a Title?
A title is technically proof of legal ownership of a particular property, regardless of the type. Therefore, if an individual has a title, they can rightfully occupy the property, live and use it as they intend to. However, kindly note that the person who holds the title may not obtain complete rights, such as the ability to lease the property or build something on it. A title is more of status than a physical piece of paper, as many might assume. It is rather a compilation of all the legal records of the property over time.
One of the most vital elements regarding the title is the bundle of rights. The phrase “bundle of rights” refers to legal privileges that the buyer is provided with after the transaction is complete and the title is already transferred.
Let us find out what legal privileges the bundle of rights offers to the buyer.
The Right of Possession
The individual who has the title is the legal owner of the property and has obtained the right to occupy and possess it.
The Right of Control
According to the right to control, the buyers possess the right to utilize the property. But it is to be noted that entities such as the Homeowners Association (HOA) have the authority to restrict certain usage methods.
The Right of Exclusion
This right allows the buyer/ owner of the house, i.e., the legal owner of the property, to have complete control over who can enter the property.
The Right of Enjoyment
The right of enjoyment is quite simple. It allows the legal owner of the property/ buyer to do what they please inside their property as long as it doesn’t violate any rule or laws.
The Right of Disposition
When you obtain the title, you also obtain the right of disposition. This right refers to the legal owner’s ability to transfer ownership.
Why is a Clear Title Crucial In Florida
A clear title is essential for property owners In Florida. Without a clear title, the ownership of a property cannot be transferred. A clear title indicates that the property lacks encumbrances or defects such as bankruptcies, judgments, liens, and more.
In Florida, no individual can conduct any real estate transaction without a clear title. `A clear title establishes the legal owner of the property. In cases involving financing and or mortgage, the lender needs a clear title to protect the interests of the property.
Before closing, it is essential to proceed with a title search to identify potential problems. During the examination, the title expert will look for problems such as:
Before you close, it is crucial to do a go-ahead with a title search to figure out if any likely problems might arise. In the examination, title experts look at and scrutinize the issues such as:
- Bankruptcy filings
- Erroneous surveys
- Foreclosure issues
- Improper title transfers due to a past paperwork error
- Improperly filed documents
- Probate issues
- Survey and boundary disputes
- Unpaid taxes
- Unresolved building code violations
The title examiner will provide a clear title only if no defects are present; otherwise, it cannot be deemed a clear title. A lack of clear title can delay the transaction, but the deal can also be canceled depending on the severity.
Deed in Florida
Once a transaction is complete, a deed is a legal document that transfers the title to the buyer.
The deed must contain the signature of the seller and the buyer after the completion of the real estate transactions. The deed is a physical, legal document, unlike the title, and must be stored safely by the new buyer.
These legal documents contain a thorough description of the property. It also recognizes the grantor, also known as the seller and the grantee, referred to as buyers. After all the transaction procedures are completed, the buyer acquires the deed at closing.
There are multiple types of deeds. They can be classified as quitclaim, warranty, bargain, grant and sale deeds.
The state of Florida used the general warranty deed the most during real estate sales. It provides the buyers with the most protection as, according to the document, no one other than the new owner cannot establish ownership over the current property.
How to Find The Best Real Estate Attorney Near Me
With Hale Law Services, navigate the world of real estate with ease. We understand that real estate can be complicated and confusing. Our real estate attorney in Bonita Springs will guide you through the entire process, starting from the transfer of ownership to the tasking legal work involved. Our law firm provides some of the experienced real estate lawyers in Bonita Springs to both buyers and sellers who ensure that we maintain the client’s best interests. To learn more about our services, contact us at 239-931-6767 or mail us at firstname.lastname@example.org.