The Difference Between a Property Title and a Property Deed

Understanding the difference between a property title and property deed is essential to complete a real estate investment. 

They are terms you will hear in any real estate transaction. The problem is, many people get them confused. However, they have a different purpose when identifying the legal ownership of a property. 

In short, a deed is the legal document that shows someone has legal ownership, or holds the title, to a property. 

What is a Property Deed?

A property deed is the paperwork that legally transfers a property to the new owner(s). It is a legal document that is signed by both the seller and the new owner. When the document is signed and recorded with the county, it means the new owner has the title to the property.

The property deed includes the relevant details about transferring property ownership, including: 

• Description of the property
• Names of both the current owner(s) and the new owner(s)
• Signature of both parties

It is important to keep a physical copy of the deed to any property you own in a safe location. If you are unclear about what needs to be included for a deed to be legal, it is best to consult with a real estate advisor or real estate attorney. 

What is a Property Title?

Unlike a deed, which is a document, a title is the legal concept that you have ownership of a property. When you hold the title to a property you have the right to sell it, modify it, or so whatever you see fit (within local regulations).

Title Search

When you purchase a property, you will likely do a title search. This search shows if there are any liens held on the property. It also confirms that the person selling the property is the only legal owner and has the right to transfer the title.

Title Insurance

Title insurance is usually required if you are taking out a loan from a lender to purchase a property. It protects the new owner in the case of any ownership dispute once the title is transferred.

The Bottom Line

When you purchase an investment property, you will hold both the deed (the written document) and the title (concept of ownership). If you own the property with a partner, you will also list them on the deed. 

To learn more about how you can become a six-figure real estate investor without using your own money or credit, I invite you to first download my Investor Kit.