TITLE VS. DEED

Farmington Real Estate: What You Need to Know About Titles vs. Deeds

Understanding the difference between a title and a deed. Most don't know the difference. Whether you're looking to purchase, sell, or learn more about real estate in Farmington, its good to know the difference. 

Understanding Titles and Deeds in Farmington Real Estate

There's often confusion among homeowners who expect to get a title when their mortgage is paid off. Real estate doesn't have a title like a car; it has a deed. You don't get a physical deed when your house is paid off to keep in your gun safe like a car title. Instead, the deed is filed with the County Clerk's office, stating that you are the rightful owner and free of liens and encumbrances. 

In real estate, title companies play an essential role throughout the transaction. When a property changes hands, these companies thoroughly check all previous deed transfers to ensure no hidden liens or legal issues, making sure that you're ownership is clear and irrefutable. 

Real Property vs. Personal Property: What's the Difference?

When talking about Farmington real estate, it's also important to distinguish between real property and personal property. Real property includes land and anything permanently attached to it, like a house. On the other hand, personal property could be something like a mobile home, which has a title similar to that of a vehicle. A mobile home is considered personal property until it goes through a specific legal process that reclassifies it as real property called "attachment and de-activation".

Important takeaways for Farmington Real Estate Buyers and Sellers

• Deeds vs. Titles: For real estate in Farmington, homes and land come with a deed, while items classified as personal property come with a title.
• Finalizing Property Ownership: Paying off your Farmington home doesn't result in receiving a title. The deed represents Your ownership and is recorded at the county clerk's office.
• Role of Title Companies: When you buy or sell property in Farmington, title companies ensure the transaction is free of legal entanglements by checking every previous deed.

Are you planning a move to the Farmington real estate market? The NM Dream House team is here to guide you every step of the way and make your experience as seamless as possible.