Muniment of Title
Property ownership and transfers play a critical role in real estate as they form the legal basis for who has the right to use a piece of land. The transfer process occurs by way of a deed. A property deed is a legal document that confers property ownership from one party to another. The deed acts as the official document of transfer for real estate.
Deeds are simple documents that require little information. However, every deed should feature the following:
- Notification that the document is a deed
- A description of the property the deed is intended to transfer
- The signature of the party this is transferring the property
- Information on the party taking the title of the property
Every real estate transaction requires the use of some type of deed. Several types of deeds exist, each granting varying levels of titling and protection. At MHPS Law, our real estate attorneys can help you navigate property transfers so your interests remain protected. Our attorneys will assist with preparing and reviewing legal documents, such as purchase agreements, deeds, and transfers to ensure they comply with Tennessee state law.
What is a Muniment Title
A muniment of title is a general legal expression referring to deeds or other written evidence showing property ownership or title. The term refers to all deeds, court orders, judgments, wills, etc.
In essence, a muniment of title is any legal document that proves you own property. As with any important legal document, you need to take special care to keep these documents safe for when you wish to transfer property or need to prove ownership in court.
The Different Types of Deeds
Real estate transactions are complicated, as property rights and ownership claims can date back hundreds of years. To protect your interests when buying or selling property, it’s important to have a clear and accurate deed that details the current ownership status and any encumbrances or restrictions on the property. Unfortunately, not all deeds confer the same information or protections to the buyer or seller.
The most common way of transferring property, a general warranty deed is used when the seller is confident that the title to their property is in good legal standing and suitable to sell. By providing a general warranty deed, the seller states that the property has no debts or liens, which assures the buyer that once the purchase of the property is complete, they will owe no additional money. This type of deed is often transferred when purchasing a home or residential property.
A general warranty deed gets its name because it also includes specific protections for the buyer. In addition to assuring the buyer that they will receive ownership of the entire property they’re purchasing, the deed also includes provisions that no third party can challenge the validity of the property title at a later date. Essentially, this type of deed ensures that once you buy property, it is yours until you decide to sell.
A quitclaim deed also allows property transfer but without any of the protections offered by a general warranty deed. While a quitclaim deed will transfer an owner’s total stake in a property, the buyer receives no guarantee that the title the owner holds is legally valid or that they have the right to sell. The deal only transfers the ownership rights the seller possesses at the time of transfer. Often with quitclaim deeds, the seller has full property right but does not want to provide the protections offered by a general warranty deed.
Quitclaim deeds offer the fastest way of transferring property ownership by ignoring any potential title claims and issues that could develop from them later on. However, this can create issues with getting title insurance, as many title insurance companies avoid property purchased under a quitclaim deed.
While a quitclaim deed is used when the seller is uncertain about their ownership status, they are frequently used to quickly transfer property between friends and family members.
A deed of trust enables a property owner to use their real estate as collateral when borrowing money. By signing over a deed of trust, the owner transfers the legal title of their property over to a trustee to hold in a trust as security for a loan. The trustee will hold onto the property title until the loan is paid in full, at which point the title is transferred back to the owner.
If the property owner defaults on the loan, the trustee can sell the property to pay off the debt. This is referred to as a non-judicial foreclosure and doesn’t involve the court.
You can expect to sign a deed of trust in Tennessee when purchasing a home instead of a mortgage. This offers several advantages to traditional home mortgages, including faster closing times and lower fees. Our real estate attorneys at MHPS can help you navigate the process when signing a deed of trust.
A ladybird deed allows a property owner to transfer a real estate title to another party while maintaining ownership rights. The owners can still make decisions regarding their property without consulting the title holder, including renting or selling the property. When the property owner dies, it automatically transfers to the stated beneficiaries without first passing through probate.
Ladybird deeds are frequently used to keep property in the family without losing Medicaid eligibility or exposing the property to the state’s attempt at recovering Medicaid costs after the owner passes away.
Ladybird deeds are not available in Tennessee.
A transfer on death deed allows a property owner to designate one or more beneficiaries to become the property owner upon their death automatically. The transfer occurs outside of probate, meaning the property will not be subject to the delays and expenses associated with the probate process.
Tennessee does not recognize transfer on death deeds.
A survivorship deed, also referred to as a joint tenancy with right of survivorship deed, creates a joint tenancy between two or more property owners. This type of deed includes a provision that when one of the owners passes away, their share of the property automatically transfers to the surviving owners without passing through probate.
This type of deed is often used by business partners or married couples who want to ensure the surviving owner maintains property ownership without the need for legal intervention.
Nashville Probate Lawyers – Muniment of Title
Our Nashville Probate Lawyers Will Help Protect Your Property Interests. Buying and selling property is complicated, especially when questions surround ownership and property rights. At MHPS Law, our experienced team of probate lawyers can help you make sense of your legal protections and rights when buying or selling property. We can also help you navigate probate quickly, so you can claim your inheritance as your loved ones would have wanted.