Property Titles and Property Deeds: What’s the Difference in Pennsylvania?
Is there any difference, in Pennsylvania law, between the term “property title” and “property deed?” In short, these terms are often used interchangeably. But a “title” is reflected in a deed, and in some cases, the two don’t match like they should.
What is a Deed?
A deed is a document that proves property ownership. The deed includes information such as:
- The names of the grantor (seller) and the grantee (buyer);
- Explanation of the transaction;
- A statement of consideration (the amount the buyer is paying for the property);
- Operative words of conveyance (e.g., identify the seller giving property to the buyer); and
- A description of the land.
The granting clause sets out information that describes the property that the grantee intends to purchase and the type of conveyance the buyer receives. The deed is very important concerning the execution (delivery and signing) of the deed with the other party and delivery to appropriate parties. The deed is also essential for transferring property ownership.
All deeds will also state the type of deed conveyed from the seller to the buyer. These can be any of the following:
- A General Warranty Deed—This deed includes all covenants, and the buyer has power over the seller against defects.
- A Special Warranty Deed—This deed contains covenants but limits the buyer’s power to enforce against the seller.
- A Quitclaim Deed—The buyer gets whatever rights the seller has to the property.
Finally, do not forget that when you (as the buyer) receive your deed, you need to record your deed with your county’s Recorder of Deeds to put others on notice that you own the property. Pennsylvania follows the “race to the courthouse” rule of property law. The first to record the deed is presumptively the proper owner of the real estate. (In most transactions, your lawyer or title agent will handle the recording for you.)
What is Property Title?
Property “title” refers to ownership rights that the buyer holds regarding their property. These rights are reflected in the deed. In unusual cases, they may also be found in other deeds or are established by law and customary usage rather than the language of your deed.
Unlike deeds, title lacks a physical component and is generally a legal concept. Title to your land can be split between the right to use the land for an “easement,” as one example, and the right to live there, sell the land, or otherwise exert control.
Various types of title include oil and gas rights, the right to enter upon land for inspection or repairs, the right to travel over an easement to access other land, the right to inherit the land upon the current owner’s death and even simple leases.
Title insurance is conducted by a title insurance company as a policy on the property parcel that the buyer intends to purchase. Title insurance guarantees that the insurance company has searched the public records, and it insures against any defects in the public record. A common exception may include that certain defects are exempt from the insurance policy, but this is based on the title insurance company.
A title search is a search that is normally conducted by the buyer before a deed is signed (during the executory period). The buyer, or their attorney, will conduct a title search to verify that the property parcel that the seller intends to convey to the buyer is actually owned by the seller. This step is critical, as it can alert the buyer that the seller does not own the property in question or has transferred ownership to someone else.
So, What’s the Difference?
In Pennsylvania, there isn’t much practical difference for most people between these concepts. A deed reflects your title (usually). But sometimes, a deed doesn’t contain information about an easement that has been there for 100 years, or the rights acquired by adverse possession through the years.
A title search can help with these problems, and seeing a lawyer about your particular real estate question can also help. If you need any help or clarification in conducting a title search or obtaining a deed for your home (or recording a deed or mortgage), please feel free to contact Cornerstone Law Firm. Our real estate attorneys would be happy to assist you.