Every piece of property has a deed and it is the most important piece of paperwork you will ever have on hand. Once you have been given that deed, you have proof that you own the land, house, and everything else on the specified property.
Despite knowing you own everything, do you have any idea what is included within the deed you have?
If you are like most people, you don’t. So, I am going to explain everything that is included in your deed. This will ensure you know everything you should about what you own and what your legal options are.
The first thing you must know is every deed is recorded and on public record. While the registry is now online in most municipalities, this recorded information used to be written down in registry books.
If you are interested in searching who else has owned your property, or another property, you can easily do so.
Grantor and Grantee
On your deed, there will be a section labeled grantor and grantee. The grantor is the person selling the property. The grantee is the person buying that same property. Mailing information is included for each person to confirm their identity.
If more than one person is listed as the grantee, ownership is listed in one of two ways. The first is joint tenants with rights of survivorship. In that scenario, if one of the people listed dies, the other person, or persons, automatically receive additional ownership of the property. The other option is tenants in common, which is the default option in the state of New Hampshire. When this option is chosen and a person dies, their portion of the property goes to their estate.
Type of Covenants
There are a few different types of covenants. Each one offers a different “guaranty” to the new owner. The Warranty Deed is the strongest title. A Quitclaim Deed doesn’t offer a guaranty of title, but does state what rights the grantor has to the grantee.
A Fiduciary Deed is used when a property is being sold by an estate, while a Foreclosure Deed is used by mortgage companies after a foreclosure takes place.
Your deed will include where your property is located. It includes the address, name of the town or city, as well as the county.
One of the most important pieces of information on your deed is the parcel description. This description includes the boundaries of the property. Surveyor pins are the most popular option nowadays, but in the past, trees, large rocks, and stone walls were used to mark boundaries.
It is best to have a deed with detailed descriptions because it will prevent confusion over property lines in the future. When a person purchases a new home, I always recommend they hire a surveyor to find their boundaries. This ensures they have the correct information and are not relying on second or third-hand information from past homeowners.
Sometimes deeds will include a section of restrictions, but those restrictions don’t need to be included in the deed for it to be valid. These restrictions may include the use of the property or easements that are in place.
Meaning and Intending
This section may sound confusing at first, but it is basically used as a helpful tool to see how the grantor obtained the property. If you are searching to see who the original owner of the property was, this is a good section to start looking.
Almost everything with real estate is taxed when the recording of the deed takes place. However, there are certain situations when real estate is exempt or there is a minimum fee. If your property is exempt, you will see that information in this section of the deed.
Date and Signature Block
In the state of New Hampshire, a deed does not need to be recorded before it is deemed valid. The deed does need to be signed and notarized though.
There may be a time when there are multiple deeds to a property. In those scenarios, the deed that has been recorded is the one deemed valid.
This is basically what you must know about the deed for your property. If you still have questions about your deed, or anything else pertaining to your property, contact me today.