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What is the difference between Title and Deed of Trust on my home?

By
Real Estate Agent with Samson Properties VA0225077251
Virginia Home buyers who were at the closing table are intimated by the number of papers/documents they had to sign. The settlement agent does try to do their best in explaining the different documents that were getting signed. The most common question I have seen is the home buyers do not understand the difference between the "Title" and the "Deed of Trust".


What is the Title o
n a home?
A title is a document or evidence that you own the property or home that you have been paying off mortgage or have paid off
mortgage. Consider the title to a property as a history report of previous owners and transfers from one owner to another. The title to your home will list the current owner, who it was purchased from and when. Titles also include where the information is recorded in the county clerk's office.

When you purchase or sell your home the title company will conduct a title search. If any cloud or issues found on your home title it needs to be corrected before you can sell that property.

Bottom line: It tells the world who owned and owns the property and give you a right to rent/own or sell your home.

What is the Deed of trust?
When purchasing a home or refinancing, you will sign a deed of trust document. Deed of trust in simple words would be a similar to signing a promissory note; he/she is agreeing to pay the lender a specific amount of money you borrowed according to certain conditions laid out in the document.

The deed of trust includes the terms of the mortgage loan and what the financial obligations to the bank will be. The deed of trust protects the lender and their investment in your home. For example you stop making mortgage payments the deed has a clause that talks about the foreclosure procedure.



Posted by

 
                             
Associate Broker
MRP, ABR, ePRO

NVAR, Life Time Top Producer
NVAR,Multiple Million Dollar Sales Club Member
Samson Properties
Cell - 703-625-4949
Email - info@eNOVAHomes.com
Web: www.eNOVAHOMES.com
 
Residential real estate agent serving Northern Virginia in Fairfax & Loudoun county over a decade and almost $100+M in sales volume experience. 


 

Comments (4)

Sylvie Stuart
Realty One Group Mountain Desert 928-600-2765 - Flagstaff, AZ
Home Buying, Home Selling and Investment - Flagsta

Great post! It's information that a lot of buyers need because most don't know the difference. Thanks!

Mar 01, 2011 03:13 AM
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Ritu

Very informative post, thanks for sharing the information.

Good luck and success.

Lou Ludwig

Mar 01, 2011 10:08 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Ritu, the general public do get confused by these terms, and you have done a great job in explaining the difference!

Mar 06, 2011 01:58 AM
Tim Peterson
Wisconsin Realtor Safety and Concealed Carry Classes - Madison, WI
Realtor Safety Training Classes

Hi Ritu-thanks for putting this in simple layman's terms-I will use this

Mar 06, 2011 05:52 PM