When purchasing real estate in Massachusetts, one of the most crucial documents you’ll encounter is the property deed. It is the legal document that transfers ownership of real estate from the seller (the grantor) to you, the buyer. It’s the official paperwork that proves you own your property.
What are the different types of deeds?
Home buyers commonly come across three types of deeds:
- General warranty deed: This offers the most protection to buyers, as the seller guarantees they have a clear title to the property and will defend against any claims.
- Special warranty deed: The seller only guarantees against claims that arose during their ownership.
- Quitclaim deed: This provides the least protection, as the seller only transfers whatever interest they may have in the property without any guarantees.
Each type serves different purposes, and the one used in your transaction can significantly impact your rights as a buyer.
What key elements should you examine?
When reviewing a property deed, pay close attention to these critical components:
- Grantor and grantee information: Make sure the deed spells all names correctly and matches other legal documents. This seems simple, but errors here can cause major headaches down the line.
- Property description: This section should include more than just the property’s address. Look for a detailed description that precisely defines the property’s boundaries.
- Consideration: This part of the deed mentions the amount paid for the property. For privacy reasons, the deed may not always list the exact amount, but it should include a statement acknowledging that the buyer gave consideration.
- Signature and notarization: The seller must sign the deed, and a notary public should notarize their signature. This process proves the seller’s identity and demonstrates that they signed willingly.
Taking the time to understand and review your property deed can help you confirm the exact property you’re buying and understand any limitations on your use of the property. Reviewing the deed can also help you identify any mistakes or issues before buying, signing or putting it on public record. Remember, the deed is your proof of ownership. It’s worth taking the time to make sure it’s right.
Get clarity on your investment
Real estate transactions involve major financial and legal commitments, so it’s better to ask for help than to make assumptions. If you have any doubts about your property deed, it’s crucial to consult with an attorney.