📜 Deed vs. Title: Do You Know the Difference?

“Deed” and “title” are two of the most commonly confused terms in real estate.They may sound similar, but they refer to completely different concepts, and not understanding the distinction can lead to legal issues or financial loss.

Whether you’re buying or selling a home—or just trying to understand your property ownership—knowing how these two terms work is essential.

📝 What Is a Deed?

A deed is a legal document that transfers ownership of a property from one party to another.When you purchase a home, the seller signs over a deed to you.It must be a physical document signed by both parties and officially recorded with the county to be legally valid.

There are different types of deeds:

• Warranty Deed: Guarantees the title is clear and free of any issues

• Quitclaim Deed: Transfers any ownership interest the seller has—without any guarantees

📌 What Is a Title?

A title is not a document—it’s a legal concept.It represents your legal ownership of the property.

In simple terms:

✅ Deed = the document that transfers ownership✅ Title = your legal right to own the property

You receive the title through the deed.

🔍 Title Search & Closing: How Ownership Is Transferred

Before closing, a title company or attorney conducts a title search to make sure:

• The seller really owns the property

• There are no unpaid taxes, liens, or legal disputes attached to it

If everything is clear, the title is transferred to the buyer on closing day, and the deed is recorded with the county.

After a few weeks, you’ll receive confirmation that the deed has been officially recorded—and from that moment, you hold both the deed and the title as the legal owner.

🛡 Why Title Insurance Matters

Even if everything looks clean, hidden issues can pop up later:

• Fraudulent or forged documents

• Unknown heirs claiming inheritance

• Unpaid taxes or liens not previously discovered

That’s why title insurance exists.

• Owner’s Title Insurance: Protects you from title defects or ownership disputes

• Lender’s Title Insurance: Protects the mortgage lender’s interest and is usually required when taking out a loan

You only pay once, but you're protected for as long as you own the home.

✅ In Summary

Real estate isn’t just about buying and selling—it’s about protecting your legal rights.Understanding the difference between a deed and a title makes your transaction smoother and safer.

Have questions about your ownership status or preparing for a purchase or sale?Let Chicago Bokdeokbang help you with title searches, deed recording, and insurance coverage.

📞 Protect your home ownership the smart way!

Call Hansang Chul of Chicago Bokdeokbang at 773-717-2227 or email ChicagoBDB@gmail.com