Tadaima User Documentation
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  • Welcome
  • Tadaima Co-ownership
    • Myths of Homebuying
      • Example 1: 20% Down Payment
      • Example 2: Waiting for a Job
      • Example 3: Timing the Market
    • What Matters When Buying
    • When You Can't Buy -> Co-own
    • Sequential Co-ownership
      • Component 1: Equity Share Agreement
      • Component 2: Assumptions and Release of Obligations Form
      • Component 3: Performance Lien
      • Component 4: Assumable Mortgage
    • Benefits of Co-owning
    • Use Cases of Co-Owning
  • Financials of Co-Owning
    • Why is it Worth it?
    • Understanding Real Estate Investing
      • Equity Explained
      • Cashflow Sources and Sinks
      • Real Estate Investment Modeling
    • A Service for the High Mobile
      • Transformation 1: Ownership Structure
      • Transformation 2: Transaction Temporality
      • Remapping our Transformations
      • Tadaima Investment Modeling
    • The Equity Model for a Tadaima Home
  • Next Steps
    • Schedule 1:1 with Tadaima
    • Prepare Financial Documents
    • Shop Available Inventory
  • Appendix
    • Housing Market History
      • Prior 1920s
      • FDR's New Deal
      • Recent Efforts to Increase Homeownership
    • Real Estate Concepts
      • Counterparty Risk
      • Lien Priority
      • Mortgages & Liens
      • Title & Deed
      • Co-Borrower & Co-Signer
      • Appraisals
    • Other Myths
      • Wait Till Marriage
      • Possibility of 2008 Again
      • Renting is Cheaper
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On this page
  • What is a Title?
  • What is a Deed?
  • Why Did Titles and Deeds Come into Existence?
  • How Titles and Deeds Work Today
  1. Appendix
  2. Real Estate Concepts

Title & Deed

What is a Title?

A title is the legal concept of ownership of a property. It represents the rights of the owner to use, control, sell, or transfer the property. Title is not a physical document but rather a legal status that signifies ownership.

What is a Deed?

A deed is a physical, legal document that transfers property ownership from one person (or entity) to another. It serves as written proof of the transfer of the title. The deed must be signed, notarized, and recorded in the public records to be legally binding.

Why Did Titles and Deeds Come into Existence?

The need for titles and deeds emerged as societies moved away from informal land claims to structured property rights systems. Here’s why they developed:

  1. To Provide Proof of Ownership – In early civilizations, property disputes were common. Titles and deeds created clear legal proof of who owned what.

  2. To Enable Secure Transactions – Buyers needed assurance that they were purchasing land or property from a legitimate owner without risk of fraud.

  3. To Support Government Records and Taxation – Governments needed a way to track property ownership for taxation and legal enforcement purposes.

  4. To Facilitate Loans and Investments – Property owners could use titles as collateral for loans, making real estate an asset in financial systems.

How Titles and Deeds Work Today

  1. When Buying Property:

    • A title search is conducted to ensure there are no legal claims (liens, disputes, or unpaid taxes) against the property.

    • The buyer and seller sign a deed to transfer ownership.

  2. Recording the Deed:

    • After the deed is signed, it is recorded in the local government office (such as the county clerk's office).

    • This creates a public record of ownership.

  3. Title Insurance:

    • Buyers often get title insurance to protect against hidden ownership claims or errors in public records.

  4. Transferring Ownership in the Future:

    • If the owner sells the property, a new deed is created to transfer ownership to the next buyer.

In short, a title represents legal ownership, while a deed is the document that proves and transfers that ownership. They exist to establish clear ownership rights, prevent disputes, and facilitate secure property transactions.

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Last updated 3 months ago