When it comes to owning property or transferring ownership, the word “deed” often comes up. But what exactly does this document mean, and what role does it play in your property-related plans? Whether you’re a homeowner, a property investor, or someone just starting out in real estate, understanding deeds is crucial for protecting your investments and ensuring smooth property transactions.

This guide breaks down the basics of deeds, explains key terms, and answers some of the most common questions about property transfer. Let’s dig in!

If you need assistance with a property transfer, contract, or other real estate help, please contact Cornerstone Legal at (517) 708-2222 or Katrina@CornerstoneLegalPLLC.com. 

Types of Deeds: Warranty Deeds vs. Quit Claim Deeds vs. Ladybird Deeds

Each type of deed serves a unique purpose in transferring property ownership:

• Warranty Deed 

A Warranty Deed offers the most comprehensive protection. This type of deed assures that the property is free from liens or other issues and guarantees the seller has the legal right to transfer ownership. This makes it the most common document in standard real estate transactions.

• Quit Claim Deed 

A Quit Claim Deed is a simpler option but with less protection for the buyer. This type of deed transfers ownership but doesn’t provide guarantees about the property’s status (e.g., liens or disputes). It’s often used in situations where trust already exists, such as transferring property between family members or to a trust.

• Ladybird Deed 

A Ladybird Deed is popular in estate planning. This type of deed allows property owners to maintain ownership during their lifetime while automatically transferring the property to a beneficiary upon their death. It’s an ideal tool for avoiding probate. Learn more: What Are Ladybird Deeds? 

Each deed type has pros and cons, so carefully choose the right one for your specific legal or property ownership goal.

Ownership Structures: Joint Tenants vs. Tenants in Common vs. Tenants by the Entireties

The way you own property matters—especially when it’s time to sell or transfer ownership, or when you pass away. Here’s a breakdown of common ownership structures:

Joint Tenants: Ownership is shared equally, and if one owner passes away, their share automatically transfers to the other owners (known as “rights of survivorship”).

Tenants in Common: Each owner holds an individual share of the property, which doesn’t automatically transfer upon their death. This structure allows owners to pass their ownership interest to beneficiaries.

Tenants by the Entireties: Available in some states for married couples only. This structure offers strong creditor protection and automatic transfer of ownership to a surviving spouse. Michigan does allow this type of ownership.

These ownership structures can have major legal implications—understanding them helps ensure clarity and security for all involved parties.

Popular Questions About Deeds

Do I Have My Deed If I Still Have a Mortgage? 

Yes! Even if you’re making payments toward your mortgage, you generally still hold the deed to your property. However, your lender has a lien on the property as collateral for the loan. Once the mortgage is paid off, the lien is removed.

*If you have paid off your mortgage and didn’t get a Discharge yet, you should reach out to your lender.

Where Can I Get a Copy of My Deed? 

Your deed is typically recorded in the public land records of your local county office. If you need a copy, contact the county recorder or register of deeds office. Some areas also offer online access to these records. Click HERE for a list of all Michigan counties and links to their offices. 

What Are Property Transfer Affidavits? 

This document informs your local taxing authority about property transfers and allows you to claim certain exemptions from adjustments to your property taxation. It’s often required within a specific timeframe to ensure property tax records are up to date. Filing this affidavit correctly can help avoid penalties or fines.

What are State and County Transfer Taxes, and Are There Exemptions? 

Whenever a property changes hands, state and county governments often charge a transfer tax based on the sales price. However, exemptions may apply in cases like transfers between family members, gifts of property, or transfers related to estate planning. 

While transfer taxes vary depending on location, transfers like marital gifts, transfers into trusts, or inheritances may frequently be exempt. Not taking advantage of an available exemption could result in unnecessary charges.

Always be proactive. Understanding local laws or hiring a legal professional can help you save money and ensure compliance. Cornerstone Legal can help you determine if you qualify for any exemptions.

Why Deeds Matter in Legal and Financial Planning

Deeds are more than just pieces of paper—they’re critical to protecting your property investments, defining ownership rights, and planning for the future. Whether you’re managing your personal real estate portfolio, handling inheritance plans, or purchasing your first home, understanding the different types of deeds and ownership structures can ensure a smoother, more secure process.

At Cornerstone Legal, we’re here to empower you with knowledge and provide guidance as you plan for your property and estate decisions. If you’d like expert advice about deeds, estate planning, or business legal matters, reach out to us today. Together, we can simplify complex legal topics to strengthen your foundation for success.

(517) 708-2222 or email me at Katrina@CornerstoneLegalPLLC.com. 

Building your foundation.  Building your confidence.