09/08/2023
Happy Friday! For your information, the difference between a Deed and a Title:
In the state of Iowa, the Deed (Warranty Deed, Quit Claim Deed, Court Officer Deed, Etc.) is the transference of title to the property from one owner to another. This is to be distinguished from an Abstract of Title; which is simply a written history of a property used by banks and attorneys to review the property for liens and other encumbrances, and does not represent or convey ownership of any property. After the closing of your real estate purchase, the abstract can be returned to you or stored with the Abstract Company.
It is also important to note that the Deed that transferred ownership of your home from the previous owners to you IS THE TITLE. This deed is what makes your property yours. You can retain a copy of the deed for your records, but it is not required to sell the property as this document is also filed with County Recorder’s Office and recorded into the public record.
Many people think an abstract is the Title to your home, like a car title is proof of ownership of your car, and that when you pay off your mortgage you will receive your home’s title from bank, like you do when you pay off your vehicle. This is not the case with real estate.
The property is yours from the date your deed is recorded, and the bank does not hold on to your title documents for security purposes like a bank does with a car title. However, any mortgages you may take out on your property will become a lien on said property until they are paid off and released by the bank, which is also filed with the County Recorder.
