Starting a Business in NY Know Your Deeds
When you’re starting or running a business, you need to understand the basics of deed definition2 min read
When you’re starting or running a business, you need to understand the basics of deed definition. Whether you’re a New Yorker or located elsewhere in the US, understanding what a deed is and its implications is essential for business success. Here we’ll explain what you need to know as a business owner in New York regarding understanding local regulations and the basics of deed definition.
A deed is a document commonly used in real estate transactions. The deed assigns the title of a piece of property from one party to another, and it serves as proof of the transfer of ownership. Deeds are legally binding contracts, and therefore, they are generally specific and detailed. There are two main types of deeds -- warranty deeds and quitclaim deeds -- which have different implications.
A warranty deed is the most typical deed used. When a warranty deed is used, the buyer or grantee of the property has the assurance that they are receiving a valid title to the property, and this makes it easier for the buyer to obtain a loan or insurance on it. Generally, warranty deeds come with six implied warranties of good title, fitness, title defenses, quality of the product, quiet possession, and non-encumbrance. A Grantor who is not confident of their clear title or is otherwise unable to guarantee it should not execute a warranty deed for the transfer of property.
A quitclaim deed is generally used to transfer a smaller interest in real estate or to transfer a real estate interest to a family member without warranties. Because it does not include title warranties, the grantee needs to be comfortable with taking the title as-is. A quitclaim deed usually carries a presumption that the grantor owns the property, but that presumption is less strong than with a warranty deed.
When dealing with deeds, it's important to be aware of New York laws that may be applicable. New York has its own process for real estate transactions, and you must follow it exactly in order to ensure that the deed is valid. This applies to both warranty deeds and quitclaim deeds. Generally, each deed must include the legal description, consideration paid, names and addresses of the parties involved, and the signature of the grantor. It's important to have an attorney familiar with New York law review the deed to make sure it is valid.
It's also essential to be mindful of New York regulations around deed notation and deed recording. In order for a deed to be considered valid, it must be recorded properly with the county clerk's office where the real estate is located. There are specific requirements for deed recording, so you should always be checked that the deed is correctly submitted.
Understanding the basics of real estate transactions in New York is essential to ensure that a deed is valid, and that your business is following all regulations. It’s important to consult with an attorney to make sure that you are compliant with all New York laws related to transferring real estate.