In Florida, a deed is a crucial legal document that transfers ownership of real property from one person to another. Whether buying or selling a home, the deed helps ensure the title passes smoothly from the seller to the buyer. However, if a deed is not properly drafted or executed, it could lead to costly legal issues, disputes, and problems at the closing table and even invalidate the transfer of ownership. Here’s why getting your deed right is essential and what common mistakes to watch out for.
Why a Properly Drafted Deed is Crucial
A deed not only transfers ownership but also provides a clear record of the transfer. In Florida, the deed must adhere to specific requirements set by state law to be legally effective. A valid deed helps ensure the new owner can take possession of the property without complications, such as title disputes or claims from third parties.
Moreover, a properly drafted deed is necessary for the deed to be recorded in the county’s public records, which is essential for protecting ownership rights. An incorrectly drafted or executed deed can create title issues that may prevent future sales or financing.
Common Pitfalls Seen in Deeds
Lately, there has been an uptick in issues with the drafting/execution of deeds that have caused delays in real estate closings. The following are the most common issues that regularly appear:
- Incorrect Legal Description: One of the most common deed issues is an inaccurate or incomplete property description. A deed must contain a precise legal description of the property, which includes either a lot and block description (when the property is part of a planned subdivision on a plat map) or a metes-and-bounds description (boundaries of a parcel of real estate that are identified by its natural landmarks through “calls”). If the description is vague or incorrect, it can cause confusion about which property is being transferred and may require a corrective deed to fix. This may present an issue if the corrective deed requires tracking down a prior seller, which could lead to a delay in closing a transaction.
- Lack of Proper Execution: In Florida, a deed must be signed by the Grantor(s) (commonly the seller(s)), notarized, and witnessed by two disinterested people (the notary may act as one witness). Failure to meet these formal requirements can render the deed invalid.
- Improper Notarization: In Florida, notarization is required for the deed to be valid. Notarization requires the Grantor to sign in the presence of the notary, the notary affixes the notary’s seal to the deed, and the notary signs the deed on the notary signature line. It is not uncommon for a notary to forget to affix the seal, and a Grantor should always double-check to ensure that the deed has been notarized adequately so that a transaction is not delayed.
- Lack of Marital Status: It is best practice to include the marital status of the Grantor(s) and Grantee(s) on the deed. This is especially important for the Grantor(s) due to Florida homestead law, which requires joinder of the spouse for the conveyance of a primary residence property. Absent a grantor’s marital status, an affidavit may be required by a title underwriter to attest to the marital status of a party at the time of a conveyance, which could delay closing if the prior Grantor(s) is difficult to track down.
In conclusion, taking the time to ensure a deed is drafted correctly in Florida will help you avoid costly legal battles, title issues down the line, and unwanted delays in closing a transaction. Consulting with a real estate attorney is critical to safeguard your investment and ensure the deed fully complies with the law.
