Written by Caitlyn Vanover
When it comes to real estate, many people assume that preparing a deed is simple. After all, there are templates online, office supply store forms, and plenty of “do-it-yourself” options that promise to save money.
Unfortunately, deeds are one of the most common legal documents we see done incorrectly and the consequences can be serious. What starts as an attempt to save a few dollars often turns into a much larger (and more expensive) problem down the road.
Why Deeds Matter More Than People Realize
A deed is not just a piece of paper. It is the legal document that transfers ownership of real property. If a deed is drafted incorrectly, it can create uncertainty about who actually owns the property.
That uncertainty is known as a cloud on title.
A clouded title can:
- Prevent you from selling the property
- Delay or derail refinancing
- Cause disputes between family members
- Require court action to fix
In many cases, these problems don’t surface until years later, often when the owner is trying to sell or transfer the property.
Common Mistakes in DIY Deeds
We regularly see deeds prepared without legal guidance that contain one or more of the following issues:
Incorrect Legal Description: The legal description must precisely describe the property. Using the wrong description, an outdated one, or simply copying it incorrectly can invalidate the transfer or create ambiguity. Wrong Type of Deed: Not all deeds are the same. Quitclaim deeds, warranty deeds, life estate deeds, and transfer-on-death deeds all serve different purposes. Using the wrong type of deed can result in unintended ownership consequences or eliminate protections you thought you had. Improperly Named Parties: Misspelled names, missing middle initials, or failure to properly identify the grantor or grantee can raise questions about whether the correct parties were involved in the transfer. Failure to Address Existing Ownership: If the property is jointly owned, held in a trust, or subject to a prior deed, a DIY deed may fail to account for those interests, leading to conflicting ownership claims.
Improper Execution or Recording
Deeds must be signed, notarized, and recorded correctly. Errors in execution or recording can render a deed ineffective or unenforceable.
How a Bad Deed Clouds Title
A title company or lender reviews the chain of title to ensure ownership is clear. When they encounter a poorly drafted deed, it raises red flags.
“But It Worked for Years…”
One of the most common things we hear is: “The deed was recorded years ago, and no one ever said anything.”
That doesn’t mean the deed was correct, it just means the problem hadn’t been discovered yet.
Issues often come to light when:
- The property is sold
- The owner passes away
- Refinancing is attempted
- Family members dispute ownership
The Bottom Line
Trying to save a couple of bucks by preparing your own deed can end up costing far more in the long run. A correctly drafted deed is not just about transferring property, it’s about protecting your ownership and avoiding future legal headaches.
If you are considering transferring property or have questions about an existing deed, speaking with an attorney at Thurman Law Firm can save you time, money, and stress down the road.