What is a Deed? - Understanding Deeds to Benefit Your Business in New York
Business Owners in New York: Understanding Deeds3 min read
If you're a business owner in New York, it's important to have a general understanding of deeds and when they should be used. Deeds are written legal documents that are used to transfer interests in real estate and property. The term deed is often used in combination with other words, such as "quitclaim deed," or "warranty deed," to denote different types of documents. In this article, we'll explore what a deed is, why they important, and what types of deeds are commonly used in New York.
Put simply, a deed is a written legal document that conveys interests in property from one person to another. A deed is often used in real estate transactions, and they can be used to transfer interests in land, buildings, and other forms of real estate. If you own property in New York and are transferring it to a family member, friend, or other entity, you'll likely need a deed.
Real estate deeds are composed of several components that are unique to that transaction. The deed includes identifying information of the person transferring the property—known as the grantor—as well as the recipient—known as the grantee. Identifying documents include the names and addresses of all parties involved.
The deed also officially transfers ownership of the real estate, and outlines what is being transferred. These documents also must include language from the grantor stating that they voluntarily transfer title to the recipient. The grantor must also sign and date the deed, as must any witnesses present. In some cases, a notary public must also sign the deed.
When a deed is properly executed and recorded in the appropriate county recorder's office, it legally transfers the title to the property to the recipient.
In addition to conveying title, deeds can also be used to transfer lien and easement rights associated with the property. Depending on the type of deed used, it may also include certain guarantees from the grantor to the grantee about the property. It's essential for both parties to understand the deed agreement prior to executing and recording it.
The most common types of deeds used in New York are warranty deeds, quitclaim deeds, and special warranty deeds.
A warranty deed is the most comprehensive deed and provides the most guarantee to the recipient. A warranty deed typically states that the grantor holds a clear, valid title to the property without any encumbrances. A warranty deed may also include additional language that guarantees the grantor will reimburse or defend the grantee against any claim arising from the title.
A quitclaim deed is less comprehensive than a warranty deed. It simply transfers the grantor's interest in the property without any guarantees about ownership. Quitclaim deeds are often used when a family member transfers property to another family member, or when a married couple divides the property in a divorce.
Finally, a special warranty deed offers some level of protection to the grantee about the title to the property. The language in special warranty deeds generally only guarantees that there were no encumbrances placed on the property while the grantor was the owner.
When a deed is used in a real estate transaction, it's important to remember that it must be properly executed and recorded in the appropriate county recorder's office. It's also important for both parties to fully understand the deed agreement and any applicable state or local laws.
Understanding the types of deeds and when they should be used is important for all New York business owners. Deeds help ensure that real estate ownership is properly and legally transferred, and are an essential part of real estate transactions.