what is a deed 
a deed is a signed legal document that transfers ownership of an asset to a new owner deeds are most commonly used to transfer ownership of property or vehicles between two parties the purpose of a deed is to transfer a title the legal ownership of a property or asset from one person or company to another a deed to real property must be properly filed with the local government for its owner to be able to sell it refinance it or obtain a line of credit on it this task is usually undertaken by the property buyer s attorney or title insurance company understanding a deeda deed is a binding document in a court of law only after it is filed in the public record by a local government official who is tasked with maintaining documents the signing of a deed must be notarized some states also require witnesses if a deed is not written notarized and entered into the public record it may be referred to as an imperfect deed the document and the transfer of title are valid but the related paperwork may need to be on file with the register of deeds to avoid a delay if there is a legal challenge other types of documents that confer privileges comparable to deeds include commissions academic degrees licenses to practice patents and powers of attorney the register of deeds is available for public viewing and is usually maintained at the town county or state level types of deedsthere are many different types of deeds each of which serves a different purpose they are generally categorized in the following ways content requirements of a deedthe exact requirements vary from state to state but they are pretty basic in california for instance the property being transferred must be described adequately the grantor the person transferring title to the property and the grantee the person accepting title must be named 2the deed may be void if the grantor is found to be not mentally competent was signed by a minor or of course was forged a deed does not have to be filed with the local government in order to be valid but this routine step can avoid trouble and delay down the road if the deed is embroiled in a legal case or the property owner wants to sell the property deeds often have a precise and detailed description of the property being transferred this description typically includes the property s address boundaries lot number and any other relevant identifiers the more accurate this description can be the more reliable and helpful the deed will be deeds and considerationconsideration is a foundational concept in contract law it embodies the idea of value exchanged representing what each party gives up in the context of a deed consideration plays a pivotal role in signaling the seriousness and intention behind the transfer by including consideration in the deed both the grantor and grantee acknowledge that the transaction is not merely a gift a deed is closely tied to consideration as the combination of both cover many of the requirements for a legitimate transaction by stipulating consideration the parties demonstrate their mutual intent to enter into a binding agreement for the transfer of property this helps establish the transaction as a deliberate and consensual act rather than an accidental or involuntary transfer consideration also provides a benchmark for assessing the value of the property being transferred and the fairness of the transaction while a deed itself signals a transfer it doesn t evaluate or measure the nature of the transaction while consideration need not be precisely equivalent to the property s fair market value there are legal and tax implications if the transfer of a deed does not have consideration in some states a mortgage for a house entails the creation of a deed of trust a trustee holds the deed of trust until the loan for the property is paid in full deed limitationsa transfer of ownership can get muddled even when a perfected deed has been filed there could be a cloud on title for a variety of reasons false deeds or deeds that contain errors can be filed that require clearing up with the record keepers there also can be probate issues for example if the owner of a property passes away without defining in a will who should gain control of some property the heirs might challenge one another in court for the property title moreover conferring a title through a deed does not necessarily grant the new owners the right to use the property in any way they choose a deed may include restrictions on the owner s actions such as the rules imposed by a homeowner s association an individual who signs a deed for a parcel of land has a legal right to possess that land for example but may not be able to build a shooting range on it because of the potential risks it would pose in other cases the holder of the title to a piece of property may own the land but be unable to develop it for environmental reasons deed restrictions and covenantsdeed restrictions also known as restrictive covenants are limitations or conditions imposed on the use or development of a property these restrictions are typically outlined in the deed deed restrictions aim to preserve the integrity value and aesthetics of a property for example think about implications of selling a house there may be restrictions to respect the current state of a neighborhood common examples of restrictions that may be listed in the deed include prohibitions on building additional structures exterior modifications or how land can be used somewhat related to deed restrictions are deed covenants covenants refer to agreements or promises made by property owners to abide by certain rules or conditions these are more likely to be voluntary compared to restrictions generally speaking deed restrictions are typically tied to the property deed itself and may be a bit more specific in contrast covenants may be part of a larger set of community rules or agreements and may vary in their application and enforcement deed vs titlea deed and a title are not the same but they are inextricably linked 