The term 'Title Deed' is included in the Banking edition of the Financial Dictionary. Get your copy on Amazon in Kindle, Paperback or Audio edition. Check for lowest price here...
Title deeds are a form of legal documents. They are utilized to demonstrate that a person owns a certain property. Title deeds are used most often to provide proof of home or vehicle ownership. Title deeds might also be given out on other kinds of property. Title deeds give owners privileges and legal rights. To transfer a property’s ownership to another individual, a title deed is required.
Title deeds generally come with detailed descriptions of the property to which they are attached. They are made specific enough so that they can not be mixed up with other properties. They also include the individual’s name who owns the piece of property. More than one person can be named as an owner on a title deed. Proof that the title deed is recorded with the appropriate office is provided by the presence of an official seal. Title deeds are commonly signed by the property owner and a person who witnesses the signature, such as a clerk or area government official.
Having a title deed does not mean that a person keeps the car in his or her possession. You can loan a car to a relative to use, even though they are not on the title. If you purchase a car using a loan, then the bank will have the title for its security, even though you would keep the car. You might purchase a house and rent it to a tenant. Although the tenant would not have the title deed, he or she would still possess and occupy the house. The title deed is useful for forcefully retaking possession in any of these scenarios.
When you sell a property, the old title deed is invalidated and a new one is given out that has the new owner’s name on it. You might also add another person to a title deed by working with a title company for a property, or the Department of Motor Vehicles for vehicle titles. You have to fill in a request in writing before you receive a new title deed with the other names added to it. Once a person’s name has been added to a title deed, they legally control the property along with the original title deed owner.
Title deeds have to be kept safe. As official legal documents, they are not easy to replace when stolen or lost. It is a smart idea to keep title deed copies separate from the original to have proof of ownership while an official replacement title deed is being issued. Physical possession of title deeds allows a person to start a transfer of ownership, so they must be kept where they will not be stolen and then subsequently utilized to transfer your property to another individual.