The Difference between Titles and Deeds

East Rockaway, New York, attorney Marc Rovner has served as the director of business development and senior staff attorney for BETA Abstract LLC since 1998. As such, Marc Rovner of East Rockaway oversees the Legal Department for the title insurance company and is responsible for developing the business into offices in New Jersey, New York, and Florida.

Many people use “title” and “deed” interchangeably, but the terms refer to two separate legal concepts.

A deed is a type of legal document. It must be written and contain the title of the document, place, date, terms and conditions, jurisdiction, details of all parties involved, and signature of witnesses and parties. Deeds are used to confirm that a property title or other asset is being transferred from one person to another person. Since they are legal documents, the local assessor’s office or courthouse must record the deed, otherwise they are not fully binding.

A title, by contrast, is a legal term as opposed to a written document. It says that someone has a right to own and use the property in question. In many cases, a title is more powerful because it shows who is the true owner of a property. Due to this, many people purchase title insurance. Insurance protects property owners from financial loss in the event any title problems arise after property is purchased. Moreover, mortgage lenders or banks typically require some title insurance.