Show #352 Airing Sunday, 8/13/06
If, in deed, we are judged by our deeds, then what would our home deeds reveal about us? When it comes to homes, are there good deeds and bad deeds? Here to answer our questions is Bridget Connor from Gateway Title Agency.
Question:What is a deed?
Answer: A deed is the piece of paper that transfers the ownership of a property from the seller to the purchaser. It had to be prepared, signed, and notarized properly.
People often talk about the "title" as this piece of paper, but really, it's the deed.
Question: What types of deeds are most common? Any we should avoid?
Answer: There are many kinds of deeds, with the most common being a General Warranty deed and a Fiduciary deed.
With a General Warranty deed, the seller or grantor sign the deed, stating that they own the property, have full interest, and can transfer the property to a buyer.
With a Fiduciary deed, someone else signs for the owner in case of incompetency or death. It offers the same warrantees as the General Warranty deed.
You want to avoid a Quit Claim deed. Here, the person granting the property gives the property "as is"-with defects, claims, and mortgages along with it. This is at a huge risk of the grantee; they will more likely receive a liability rather than a gain.
For example, we saw a doctor whose patient owed $60,000. He gave the doctor a property worth that much in payment, but used a quit claim deed. When the doctor tried to sell the property, the title exam discovered $200,000 worth of liens on the home. The doctor became an instant landlord.
Question:When you bought your home, the seller signed the deed. Now you're being told you're not the sole owner of the home. How is that possible?
Answer: If the owner of the home was married, the spouse must also sign the sale deed, even if the spouse was not named on the deed! Ohio recognizes dower rights, which means the spouse has legal ownership in the home even if not on the deed. When you buy a home, you’ll need both spouse to sign off. Or you won’t own your home all by your self.
For example, there were three sisters who got the home from Mom. Mom got the home from 13 people. These deeds didn’t have spouses’ sign off. Big problems.
Question:Now we're going to look at a few of the questions you at a title agency hear most about deeds. First, if a person was single when they bought their home, but are now married when they are selling it, does the spouse have to sign the deed?
Answer: Yes. Ohio is one of the few states that recognizes dower rights. Dower rights state that the interest of the property on death goes to the spouse. The State cannot throw the spouse out of the home. Therefore, we need to see the spouse sign any deed, any mortgage, etc. Their permission is needed.
Question:People also wonder if they lose the deed, do they still own the house.
Answer: You don't lose the house. Deeds are recorded with the county, and the slip of paper is not needed once the information is recorded. To replace your copy, you can call the county or, in most places, visit the county website and print it from there.
Question:People also want to know if they can put a deed into a trust.
Answer: Most people's aim in putting their house in a trust is to avoid probate. However, you cannot put a deed into a trust. For example, you can not create a deed to transfer the house from you, Mary Smith to your trust, the "Mary Smith Trust." The name on the deed must be that of a living, breathing person who can sign a deed. If it's not, it must be probated, which defeats the purpose. The deed must be in the name of the trustee, not the trust.
If, in deed, we are judged by our deeds, then what would our home deeds reveal about us? When it comes to homes, are there good deeds and bad deeds? Here to answer our questions is Bridget Connor from Gateway Title Agency.
Do a good deed for yourself and check your home deed to make sure everything's in order. To learn more, or for a free home sale kit, you can, indeed, call the number that's next. My thanks to Bridget Connor.
