One of the most common questions we’re asked is:
"What’s the difference between a title and a deed?"
While they’re closely related, a title and a deed are not the same thing. In simple terms:
- The title represents your legal ownership of a property.
- The deed is the physical document that transfers that ownership to you.
Think of it like this: The title is the right. The deed is the proof.
What Is a Title?
In real estate, a title is a legal concept, it refers to your rights of ownership. This includes the right to use the property, lease it, sell it, or transfer it. When you "hold title," you legally own the property and the rights that come with it.
📌 Note: This is different from a car title, which is a physical document. In real estate, the title is a legal status, not a piece of paper.
What Is a Deed?
A deed is the actual written document that transfers property ownership from one person (the grantor) to another (the grantee). The deed is signed and then recorded with the local county, usually at the Recorder’s Office, to make the transfer official and public.
There are different types of deeds, and also different ways to take title (or own the property), such as:
- Joint Tenancy
- Tenancy by the Entirety
- Tenants in Common
📞 Before purchasing real estate, it's important to understand these options. Call our office to discuss the best way to take title for your situation.
Summary
- The title is your legal right to own a property.
- The deed is the legal document that gives you that right.
- When the deed is recorded in your name, you officially take title and become the legal owner.
Real-Life Example
When you buy a home, the seller signs a deed that transfers ownership to you. Once it’s recorded, you now hold the title to the property. This, along with a title search and title insurance, proves your ownership is valid and protected.
Need Help Understanding Ownership Options?
Visit our page on ways to hold title in Illinois or call Andrew or Alex at (217) 428-8080 to discuss your best options before you buy.