You own realestate. If you’re asked, how do you show proof of your ownership?
Essentially,the proof is in your property’s title history. This means:
- Your ownership interest is only as good as the interest conveyed to you by the last owner; and
- Others could have dibs on your property, if you used it to borrow money.
Of course,when you bought yourhome, the title company researched thechainof titleto ensure previous ownerhad the right to convey toproperty to you.How do you check the chain of title now? Thecountykeeps records.Many county websitesmake theinformationaccessible online, so you can look upmortgages, other liens,anddeeds that pertain to yourproperty.
TheDeed:Key Proof ofOwnership
The general warranty deed isthestandard instrumentfor home sales. Your notarized warrantydeedis proof ofownership, and that the grantor transferred completeand clear title to you. A quitclaimdeedalso proves fullland ownership—ifthe person who conveyed theinterestto you had full ownership.
But where’sthe deed? You received it atclosing. If you’ve misplaced it you maypurchase copiesfrom the county clerk’s office.
PaidOff Your Mortgage? Prove It.
If a homehas a mortgage lien,amortgage notedemonstratesthatthe borrower ownstheproperty.
Now, say youwant to refinance, and the underwriter wants proof you own the property, freeof mortgage liens. If you’ve paid off your mortgage, you (and your countyclerk’s office) got a satisfactionof mortgage lettera few weeks after payoff. Thisprovesyou own the propertyand that you paid off the loan. If anyother liens surface in atitle search,requeststatements of thelien settlements.
- Pro tip 1: Check your homeowner’s insurance declarations. Once your mortgage is paid off, no mortgagee clause shows up on your insurance policy. This can provide documentation to an underwriter that you own your property, free of mortgage liens.
- Pro tip 2: Another way to show an underwriter you have no mortgage is by producing a copy of Schedule E on your personal income tax returns. If it shows no interest deduction, this demonstrates you have no mortgage to declare.
Shoesto Fill: Becoming the Sole Owner
Some peoplewant to be sure they have proof of ownership after their co-owing spouse ordomestic partner has died. Often, the couple heldrights to the propertyas joint tenantswith right of survivorship (“JTWROS”). As thesurviving spouse, you need the death certificate toremovethe deceased co-owner from the title. File anaffidavit of survivorshipwiththe recorder’s office. This will placeyou in the records as the soleowner of the property.
Are you concernedthat a specific, living personstill havean ownership claim? Askthat person to fill out a quitclaim deed, by which they relinquish to you anyrights they might have had, and filethe deed, to ensure there is nocloud on title. Once thetitle is clear,a title company will be able toinsureyourtitle. This will be necessary of you are ready to refinance or sell.
AChain Is Only as Strong…
If legalproblemsentered the process of transferring the title at any point, youmight be concerned about the integrity of your home’s chain of title. Someproblems are minor, such as typos or “scrivener’s errors.” These canbe correctedwithout a need fora new deed, by way of a scriveneraffidavit. But some are more serious, such asmistakesin the property’slegal description. Sucherrors requirea correction deed to solve.Correction deeds state the error, and restate the legal description correctly.
A titlesearch may turn up an old reference to an unrecordeddocument—perhapsarestriction, an easem*nt, or someother agreement made by a prior owner.Some unrecorded documents expire.Nevertheless, the title search needs to take note,andunderwritersneed to be aware.Ifan unrecorded mortgage ishauntingyourproperty, but you didn’t know this when you bought thehome, you’re a bona fidepurchaser—not legally responsible for theunrecordedlien.
If there isa real debate about the title,acourt might need to solve it in a quiet title action. Ajudge can examine any breakin the chain, and declarethat it nolonger exists, enabling you to prove you have clear title to your home.
JustNo Substitute for a Recorded Deed
A bill ofsale, as areceipt for the purchase, istemporaryproof ofownership. But don’t rely on it, or anything else, to substitute for the actualdeed. The story ofMatthew, a realColorado resident, shows why.
Matthewbought a piece ofland,filed thebill of sale with the county,and never gave it a second thought.
After Matthewhadfaithfully paidtaxes andmortgage payments for a year and a half, the localassessor’s office returned the property into the seller’s name.Under Colorado law, the bill of sale doesn’t transfer property.Colorado requires the deed to bedelivered to the buyer for a valid conveyance. Unable to findthe seller and have adeed completedand recorded, Matthew had to file a quiet title action.
The moral ofthe story? Avoid a Matthew problem. When you buy property, be sure it’s a deed(indeed!) that’s delivered and recorded.
AWord to the Wise
Just becausea document isfiled with the county, doesn’t mean it’s right. This pointis vital to the chain of titleandyour ownership status. Whenthecountyrecords a document, itdoes notprovide legaladvice. Nor does itreview itsrecorded documents for mistakes,fraud, or illegality.
If you needto check the status of your title, you can set up an account to do a title search with us. Thisenables deed retrievalofthe current grant, warranty, or quitclaim deed for your home.
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