Whether you're purchasing property or conveying property to a third party, ensuring that the deed is properly executed, delivered, and recorded is a crucial step that safeguards your legal interests. A deed is a written instrument that transfers the legal interest in a property from one person to another. To validly convey a deed, it must be properly executed, delivered, accepted, and recorded.
Proper Execution of a Deed
The proper execution of a deed is an important first step because if not done correctly, the deed is unlikely to be valid and effective.
There are several components of a properly executed deed. First, the deed must identify the person giving the property (the grantor) and the person receiving the property (the grantee). Specifically, the grantee's name and current address should be included on the deed. The person responsible for preparing the deed must also include their name in legible print, typewritten, stamped, or signed within the deed. Second, the deed must include a detailed description of the property that is being conveyed. This description should include the land's legal description, address, or other relevant identifiers. An improper legal description can create confusion over the clear title to land and could potentially result in the grantee obtaining less (or different) land than was bargained for.
In Ohio, deeds also include a property's street address and tax parcel ID number directly beneath the legal description. A grantee should make sure this address is correct because it will be the address that the county uses to send tax notices and other important correspondence. Third, the deed must include a granting clause that explicitly states the grantor's intent to transfer ownership. For example, “the grantor grants the property to the grantee.” Words like “assign”, “transfer”, “convey”, or “give” may also be used – but the grantor should clearly describe how the property is being conveyed and how much of the property is being conveyed. Finally, the deed must include an “execution block”. This block should include the signature of the grantor or grantee. It should also list the date and contain the signature of at least one witness. Most commonly, the witness is a notary public or another authorized official. The witness must be physically present when the document is signed and must provide their own name and address for identification purposes. However, the witness may not be a party to the deed.
Miscellaneous Property Considerations
If applicable, it is also necessary to account for surveys done on the property and any dower rights that could be asserted.
A survey provides a detailed map of the property, identifying its boundaries, and existing structures, and potential encroachments or easements. This document ensures that the grantee understands exactly what is being conveyed and helps prevent future disputes over property boundaries. When the deed conveys real estate that has been surveyed, the deed must state the surveyor's name. Dower rights pertain to a spouse's legal interest in the property. Ensuring that dower rights are properly addressed and waived, if necessary, protects the grantee from future claims or forced sales. A majority of states no longer recognize dower rights, but they are still recognized in Ohio.
Proper Deed Delivery & Acceptance
It is essential that the executed deed be properly delivered for the transfer of ownership to be effective. Delivery signifies the official transfer of ownership from the grantor to the grantee. A proper delivery means that the grantor has voluntarily transferred possession of the deed with the intent to pass the title to the grantee. The grantee must also accept the deed to constitute a good delivery.
Deed Recording
A crucial final step when conveying a deed is the recording. In Ohio, the deed does not need to be recorded in order to pass title, but failure to do so could put the original buyer at risk of losing the property if it is sold to someone else. The deed should be recorded in the county recorder's office of the county in which the property being conveyed is located. Recording the deed provides the necessary constructive notice of the conveyance to creditors and future purchasers. This process protects you from potential legal disputes, establishes your claim to the property, and ensures that you can easily sell or transfer the property in the future without unnecessary complications. If a deed is not properly recorded, the grantee's rights to the property may not be recognized under the law by third parties. Failure to properly record could present major challenges for home buyers as a lender may deny a mortgage application because the deed is not in the buyer's name.
By adhering to these procedures, purchasers or conveyors of property not only protect their current property rights, but also facilitate smoother transactions in the future. Ultimately, this diligence in managing your deed documentation upholds the integrity of your property ownership rights and helps to avoid costly legal disputes down the line.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.