In mortgage terminology, how do a deed and a title differ?

In mortgage terminology, understanding the difference between a deed and a title is crucial for grasping property ownership concepts. A deed is an official legal document that conveys ownership of property from one party to another. It serves as evidence that the property has been transferred from the seller to the buyer, outlining the rights that the new owner possesses. On the other hand, a title is not a physical document but rather a legal concept that signifies the right to own and use the property. Essentially, while the deed is the instrument that carries out the transfer of ownership, the title represents the legal rights to the property itself.

This distinction highlights the nature of property ownership and the importance of documented transactions in real estate. Understanding that the deed is about the act of transferring ownership and the title encompasses the broader rights associated with that ownership helps clear up common confusions about property law and transactions.