A deed is a legal document that transfers ownership of an asset from one party to another. Deeds are most often used when two parties want to transfer interests, e.g., full ownership, in real property or motor vehicles. A legal consultation in Florida with a Florida lawyer would help a person understand the law of deeds.
A deed to real property must be properly filed with the local government for its owner to be able to sell it, refinance their mortgage, or obtain a line of credit secured by the equity they have in the property. Filing a deed with the appropriate local government office is usually done by a property buyer’s attorney or title insurance company.
What Does It Mean To Record a Deed in Florida?
It is advisable to record a deed in Florida if a deedholder wants it to have its full legal effect. It is not legally required, but recording a deed does achieve a number of important goals as follows:
- Public notice: Recording provides notice to the public of a change in ownership of some interest in real property and identifies the new owner.
- Legal protection: Recording establishes the owner’s priority against any claim to an interest in the property that is recorded after the owner records their deed.
- Proof of ownership: A deed that has been recorded is official evidence of ownership of the property by the person or entity identified in the deed.
Recording a deed is not legally mandated, but it has important practical advantages.
In Florida, deeds are recorded in the county in which the property is located in the County Recorder’s Office. The County Recorder is the recorder of deeds in Florida. There is a County Recorder’s Office in every county. In the rare event that a property is located in more than one county, the deed should be recorded in each of them.
Recording acts are state statutes that set forth the rules as to how official county records of deed are kept so as to track public land ownership. A state’s recording act laws are referred to when needed to help settle real property ownership conflicts by prioritizing documents affecting ownership.
Florida has a notice statute. So, in Florida, if a later buyer pays fair value for a property and does not have notice that there were any other earlier conflicting interests, they are going to have priority over any later recordings.
Are There Different Types of Deeds in Florida?
Florida law recognizes several types of deeds, each serving specific purposes and offering varying levels of protection to the parties involved. It is important to understand these different types of deeds when one is thinking about a property transaction, e.g., the purchase of real property. A person wants to make the best decision about which type of deed to use for their transaction.
A deed of transfer is simply a deed that is used to transfer title to a property. A deed of transfer lawyer would be able to help a person understand which of the several types of deeds a person might need for their particular purposes.
The general warranty deed is considered to be the type of deed that gives the highest level of protection to the buyer, i.e., the “grantee” in legal terminology. It is the type most often used for residential property sales. Key features include the following:
- Full title warranty: The seller, the “grantor” in legal terminology, guarantees that they have a marketable title to the property that is free of any other claims or interests..
- Protection against all claims: The grantor warrants that there are no defects in their title, even those that might have predated the grantor’s ownership.
- Legal responsibility: The grantor agrees to defend the title if a claim should be made in the future.
The general warranty deed offers the most complete protection, making it the preferred choice for many buyers and lenders.
- The Special Warranty Deed: This is also known as a “limited warranty deed.” It offers less protection than a general warranty deed. Its key characteristics are as follows:
- Limited warranty: The grantor only warrants against title defects that occurred during their ownership period.
- No protection from prior claims: The grantor is not responsible for title issues that arose before they owned the property.
- Common in commercial transactions: This deed type is frequently used in commercial real estate deals.
While offering less protection than a general warranty deed, the special warranty deed still provides significant assurances to the grantee.
- The Quitclaim Deed: The quitclaim deed offers the least amount of protection to the person who receives it. Its main features are as follows:
- No title warranties: The grantor makes no guarantees about the status of the property’s title.
- Transfer of current interest: The deed accomplishes transfer only whatever interest the grantor currently has in the property.
- Common in specific situations: Often used in family transfers, divorce settlements, or to clear title defects.
Title insurance companies may not accept quitclaim deeds because they offer only limited protections. So they are not often used in standard real property transactions.
- Enhanced Life Estate Deed: This deed is unique among deeds, because it is used mostly for the purposes of estate planning. Its key features are as follows:
- Grantor keeps control: The grantor maintains full control over the property during their lifetime.
- Automatic transfer upon death: The property transfers to the designated beneficiary when the grantor passes away.
- Probate avoidance: The property is transferred outside the probate process, simplifying estate administration.
This type of deed has grown in popularity in Florida, because it is flexible and offers potential tax benefits.
- Trustee’s Deed: This deed is used in situations in which property is held in a trust. The Trustee’s Deed transfers ownership from the trust to a grantee. Its important features are as follows:
- Trust-specific: It is used only for properties held in trust.
- Limited warranties: It is similar to a special warranty deed in terms of title guarantees.
- Execution by trustee: The trustee signs and delivers the deed to the individual or entity that receives the property.
- Tax Deed: In general, a tax deed sale refers to an event in which the deed to a specific property is sold to the highest bidder at a public auction. The tax deed itself is a type of legal document that transfers ownership of the property to a new buyer.
The purpose of a tax deed sale is to allow a Florida county to recover the amount of property tax that a property owner has failed to pay on their property. Thus, the state or local government typically sets a minimum price for the property, one that covers the outstanding tax debt.
In Florida, What Type of Deed Is Most Commonly Used?
As noted above, reportedly the warranty deed is the type that is most commonly used in Florida.
How Do Liens and Title Issues Relate to a Deed?
Liens are claims on the proceeds of the sale of real property in order to pay a creditor of the owner for an unpaid debt of the owner. Some lien-holders can force the sale of property in order to recover the money they are owed. Other lien-holders must wait until property is sold to collect their debt.
A buyer wants to pay attention if they find that there is a lien on a property they want to buy. They want to know how much of the price they pay is going to go to the lien-holder. They want to make sure that any liens are paid off and removed from the title to the property.
Deeds are critical in resolving issues that arise concerning title to property. As noted above, the timing of recording deeds can determine which alleged owner’s interest has legal priority. So it is important to get the right deed for a transaction, prepare it properly, and record it correctly. It can pay to have the advice of a Florida real property lawyer in this regard.
If I Inherited a Property in Florida, How Do I Get a Deed?
An individual who believes they have inherited real property from a deceased relative or friend, they want to first confirm that they are an heir either in a will or through the laws of intestacy. After confirming that they are the heir of property, they want to get a certified copy of the death certificate.
They would then prepare a quitclaim deed or warranty deed or have a lawyer prepare one for them. The deed should name the current owner of the property, i.e., the deceased person, and the name of the new owner, as well as a description of property.
The current owner must sign if they are deceased, and the executor of their estate would sign for the deceased owner. Notarize deed and then record in the county recorder’s office of the county in which property is located.
Consult a Florida real estate attorney for guidance. A person wants to get this right, and an attorney can help you make sure that it is done as the law requires.
Do I Need a Lawyer To Transfer a Deed in Florida?
If you are not familiar with the law of transfer deeds and need to accomplish a property transaction, you really need to talk to a Florida real estate attorney. Your attorney can review the transaction you want to make and make sure your interests are protected and that you use the right type of deed.
