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Intermediate terms

Essential Deed Anatomy Terms

This curated collection includes key terms that might be helpful when exploring the anatomy of a real estate deed. It focuses on the essential legal components, the parties involved, and the act of property conveyance itself. These terms were selected based on common questions and areas where investors often need clarity.

Learning Path

1

Appurtenance

An appurtenance is a right, privilege, or improvement that belongs to and passes with the land, automatically transferring to the new owner upon sale.

Intermediate13-14 min
2

Chain of Title

A chronological record of ownership transfers for a specific property, detailing all legal documents that have affected its title from its origin to the present day.

Intermediate14-15 min
3

Grantee

A grantee is the individual or entity who receives ownership of real property through a legal document called a deed, becoming the new legal owner.

Beginner14-15 min
4

Easement

A legal right allowing one party to use or access another's property for a specific, limited purpose, without owning the land. It creates a non-possessory interest that can affect property value and use.

Intermediate15-18 min
5

Notarization

Notarization is the official process of verifying a signature's authenticity and the signer's identity on a document, performed by an impartial Notary Public to prevent fraud and ensure legal validity.

Beginner12-13 min
6

Deed

A deed is a legal document that formally transfers ownership of real property from one party (grantor) to another (grantee), serving as tangible evidence of title transfer.

Intermediate14-15 min
7

Property Recording

Property recording is the official process of filing legal documents related to real estate transactions with a government office, creating a public record of ownership, liens, and other interests to establish legal priority and provide public notice.

Intermediate15-18 min
8

Conveyance

Conveyance is the legal act of transferring property ownership from one party to another, typically through a deed, ensuring the new owner holds official rights to the property.

Beginner14-15 min
9

Grantor

A grantor is the legal owner of a property who transfers ownership to another party, known as the grantee, typically through a deed in a real estate transaction.

Beginner13-14 min
10

Title

Title in real estate refers to the legal right of ownership to a property, representing a bundle of rights that an owner possesses over their land and any structures on it.

Beginner13-14 min
11

Special Warranty Deed

A legal document transferring property ownership with a limited warranty, where the grantor guarantees the title only against defects that arose during their period of ownership.

Intermediate18-20 min
12

Warranty Deed

A legal document that transfers property ownership with the highest level of guarantee, where the grantor warrants clear title against all defects, past and present.

Intermediate11-12 min
13

Lien

A lien is a legal claim or right against a property, granted to a creditor, which serves as security for a debt or obligation until it is satisfied.

Intermediate18-20 min
14

Encumbrance

A claim or liability against a real estate property that affects its title and may diminish its value or restrict its use, but does not prevent its transfer.

Intermediate11-12 min
15

Real Estate Trust

A real estate trust is a legal arrangement where a property owner transfers title to a trustee, who holds and manages the property for the benefit of designated beneficiaries, offering advantages like privacy, asset protection, and streamlined estate planning.

Intermediate15-18 min
16

Real Estate Investment Execution

Real Estate Investment Execution is the comprehensive process of implementing an investment strategy, from deal sourcing and acquisition through property management, value-add activities, and eventual disposition, to achieve financial objectives.

Intermediate12-13 min
17

Quitclaim Deed

A legal document used to transfer an interest in real property from one party to another without providing any warranties or guarantees regarding the title's validity or clarity.

Intermediate13-14 min
18

Due Diligence

Due diligence is the critical process of investigating and verifying all material facts about a property and its financials before a real estate acquisition, aiming to identify risks and ensure an informed investment decision.

Intermediate14-15 min
19

Consideration

Consideration in real estate refers to the value exchanged between parties in a contract, essential for its legal enforceability. It can be money, property, services, or a promise to perform an action, ensuring mutual commitment to the agreement.

Intermediate12-13 min
20

Delivery of Possession

Delivery of Possession is the formal transfer of physical control and the legal right to occupy a property from one party to another, typically occurring at or shortly after closing.

Intermediate14-15 min
21

Limited Liability Company

A Limited Liability Company (LLC) is a business structure that protects its owners' personal assets from business debts and liabilities, while offering flexible taxation options.

Intermediate13-14 min
22

Title Insurance

Title insurance protects real estate owners and lenders against financial loss from defects in a property's title, ensuring clear ownership and safeguarding against past claims.

Intermediate13-14 min
23

Property Rights

Property rights are the legal entitlements defining how individuals or entities can own, use, transfer, and dispose of real estate, forming the bedrock of all property transactions and investments.

Beginner15-18 min
24

Legal Description

A legal description is a precise, legally sufficient identification of a parcel of land, defining its exact boundaries and location for official records and transactions.

Intermediate13-14 min