Deeds

1. What is a Deed?

A deed is a written document used to transfer ownership or interest in real property. It typically outlines the terms of the transaction, identifies the buyer and seller, and provides a legal description of the property. The primary function of a deed is to serve as evidence of the transfer of property and to provide public notice of the change in ownership.

In Ohio, a deed must meet specific legal requirements to be valid. These requirements include being in writing, signed by the grantor, containing a legal description of the property, and being delivered to the grantee. Additionally, the deed must be recorded with the appropriate county office to provide public notice of the transaction.

2. Types of Deeds in Ohio

Ohio law recognizes several types of deeds, each offering different levels of protection and warranty for the parties involved. The most common types of deeds in Ohio are:

a. Warranty Deed

The warranty deed is the most commonly used type of deed in Ohio. It provides the highest level of protection to the grantee (the buyer). Under a warranty deed, the grantor guarantees that they own the property being transferred, that it is free of encumbrances (except those explicitly stated in the deed), and that they have the legal right to transfer the property. The grantor also promises to defend the title against any future claims or challenges.

Key features of a warranty deed include:

• Covenant of Seisin: The grantor guarantees that they own the property and have the right to convey it.
• Covenant Against Encumbrances: The grantor ensures that the property is free of any encumbrances, liens, or claims, except those specifically mentioned in the deed.
• Covenant of Quiet Enjoyment: The grantee is guaranteed that no one will disturb their possession of the property due to a defect in the title.
• Covenant of Warranty: The grantor promises to defend the title against future claims.

b. Quitclaim Deed

A quitclaim deed is a type of deed where the grantor transfers whatever interest they have in the property to the grantee without making any warranties or guarantees about the title. This means that if the grantor has no legal interest in the property, the grantee receives nothing. Quitclaim deeds are often used in situations where the parties know each other well, such as in family transactions, divorces, or clearing up title issues.

Key features of a quitclaim deed include:

• No Warranties: The grantor does not guarantee that they have any ownership interest in the property, nor do they warrant that the title is free of encumbrances.
• Common Uses: Quitclaim deeds are typically used for intra-family property transfers, clearing up title issues, or removing a person’s name from the title (e.g., after a divorce).

c. Special Warranty Deed

The special warranty deed is similar to a warranty deed but offers a more limited guarantee. In a special warranty deed, the grantor guarantees that the title to the property is free from defects that occurred during their ownership but does not make any warranties regarding defects that may have existed before they owned the property. This type of deed provides less protection than a full warranty deed but more than a quitclaim deed.

Key features of a special warranty deed include:

• Limited Warranty: The grantor only warrants that the title is clear from defects during their period of ownership, not before.
• Common Uses: Special warranty deeds are often used in commercial real estate transactions or when property is transferred by a financial institution or government entity.

d. Bargain and Sale Deed

A bargain and sale deed conveys ownership of the property without providing any warranties or guarantees about the title. This deed implies that the grantor has title to the property but does not promise that it is free of encumbrances. It is less commonly used than warranty deeds and quitclaim deeds but may be used in foreclosure or court-ordered sales.

Key features of a bargain and sale deed include:

• Implied Ownership: The grantor implies ownership of the property but does not warrant that the title is free of defects.
• Common Uses: Bargain and sale deeds are often used in foreclosure sales, transfers by fiduciaries, or court-ordered transfers.

e. Deed of Trust (Less Common in Ohio)

A deed of trust is not typically used in Ohio, as mortgages are the preferred method for securing loans. However, in states where deeds of trust are common, it involves a three-party arrangement in which the borrower conveys the title to a trustee to secure a loan. If the borrower defaults, the trustee has the right to sell the property to satisfy the debt. While not commonly used in Ohio, it may come into play in some specialized transactions.

3. Requirements for a Valid Deed in Ohio

To ensure a deed is legally valid in Ohio, it must meet the following requirements:

a. Written Form

A deed must be in writing to be enforceable. Verbal agreements or informal transfers of property are not legally binding. The deed should clearly state the intention of the grantor to transfer ownership of the property to the grantee.

b. Grantor and Grantee Information

The deed must clearly identify both the grantor (seller) and the grantee (buyer). It should include the full legal names of the parties involved to avoid any confusion or disputes.

c. Legal Description of the Property

A deed must contain a legal description of the property being transferred. This is more than just a street address and must describe the property in detail, using a description that is legally recognized. Commonly, the description includes lot and block numbers, township references, or survey details. The legal description must be precise and sufficient to identify the property unambiguously.

d. Grantor’s Signature

The deed must be signed by the grantor (the person transferring the property). In Ohio, the grantor’s signature must be witnessed or notarized to be recorded.

e. Notarization

In Ohio, a deed must be notarized before it can be recorded. The notary’s acknowledgment verifies that the grantor signed the deed voluntarily and in the presence of the notary. The notary’s signature and seal are required on the deed.

f. Delivery and Acceptance

A deed is not effective until it is delivered to the grantee and accepted by the grantee. While delivery is typically done when the deed is recorded, acceptance must be implied by the grantee’s actions, such as taking possession of the property or recording the deed.

4. Recording a Deed in Ohio

Once the deed has been executed, it must be recorded with the county recorder’s office in the county where the property is located. Recording the deed ensures that the transfer of ownership is publicly acknowledged and provides notice to third parties of the new ownership.

a. Where to Record

In Ohio, deeds are recorded at the county recorder’s office in the county where the property is located. The county recorder is responsible for maintaining public records related to property ownership and other real estate transactions.

b. Recording Requirements

To record a deed in Ohio, the following must be submitted:

• Original Signed Deed: The deed must be the original, signed, and notarized document.
• Recording Fee: A fee is required for recording the deed, which varies by county. The fee is typically based on the number of pages in the document.
• Affidavit of Value: Ohio requires an affidavit of value to be submitted with the deed. This affidavit provides the purchase price of the property and is used to determine property taxes.
• Property Identification Number: The deed should include the property’s parcel number or tax identification number. This helps the county ensure accurate tax assessment.
• Tax Certification: In some counties, tax certification may be required to confirm that all property taxes have been paid before the deed can be recorded.

c. Importance of Recording

Recording a deed is essential because it provides public notice of the transfer of property ownership. Once recorded, the deed establishes the grantee’s legal interest in the property, protecting their rights and helping prevent disputes about ownership. The recording date also determines the priority of claims, which is important if multiple parties claim interest in the same property.

5. Additional Considerations

In Ohio, there are additional considerations when dealing with deeds:

• Title Insurance: While recording the deed provides public notice, it does not guarantee that the property’s title is free of defects. Many buyers in Ohio opt for title insurance to protect themselves against unforeseen title issues, such as undisclosed liens or ownership disputes.
• Property Taxes: When transferring property, the seller may need to provide proof that all property taxes are paid up to date. Unpaid taxes could create a cloud on the title, preventing the deed from being recorded.
• Estate Planning: Deeds are often used in estate planning to transfer property to heirs or beneficiaries. In Ohio, you can transfer property via a transfer on death deed (TODD), which allows for the automatic transfer of real property upon the death of the property owner without the need for probate.

6. Conclusion

Deeds in Ohio are essential legal instruments used to transfer property ownership. Understanding the different types of deeds, the legal requirements for their creation, and the process of recording them is crucial for anyone involved in real estate transactions. By following the necessary steps and ensuring compliance with Ohio law, property owners and buyers can protect their interests, avoid legal disputes, and ensure the smooth transfer of property. Whether you're buying, selling, or transferring property in Ohio, understanding deeds is an essential part of navigating the real estate process effectively.

Works Cited

1. Ohio Revised Code. "Title 53: Real Property." Ohio Laws and Rules, 2024, https://codes.ohio.gov/ohio-revised-code/chapter-5301.
2. Ohio Department of Taxation. "Transfer of Property: How to File Deeds and Affidavits." Ohio Department of Taxation, 2024, https://tax.ohio.gov.
3. Ohio County Recorder's Association. "Recording a Deed in Ohio." Ohio County Recorder's Association, 2024, https://www.ohiorecorders.org.
4. Ohio State Bar Association. "Understanding Deeds and Titles in Ohio." Ohio State Bar Association, 2024, https://www.ohiobar.org.
5. American Land Title Association. "The Role of Title Insurance and Deeds in Property Transactions." American Land Title Association, 2024, https://www.alta.org.
6. U.S. Legal, Inc. "Quitclaim Deeds in Ohio." US Legal Forms, 2024, https://www.uslegalforms.com.
7. Legal Information Institute. "Deeds in Ohio: Overview and Common Types." Cornell Law School, 2024, https://www.law.cornell.edu/wex/deed.
8. National Association of Realtors. "The Importance of Recording Deeds and Protecting Your Property Rights." National Association of Realtors, 2024, https://www.nar.realtor.