Don't Draft Your Own Deed
After helping to plan and administer more estates than we could count, one of the most common problems we have encountered is cases where people tried to draft their deeds for their property, causing severe problems. In this blog post, I want to explain the consequences of a poorly drafted deed and why you should seek professional help when dealing with such important documents.
A deed is a legal document that transfers property ownership from one person or entity to another. It must contain certain elements, such as the names of the parties, the description of the property, the consideration (price or value), and the signatures of the grantor (seller). It must also be recorded in the county where the property is located to make it effective and public.
If you draft your deed without proper knowledge and guidance, you may make mistakes that can seriously affect your property rights and interests. Here are some of the possible consequences of a poorly drafted deed:
- You may not transfer the property as you intended. For example, if you want to add an owner to your property, specify whether they are a joint owner or a tenant in common. The former means that you share equal rights and responsibilities with the co-owner and that if one of you dies, the other inherits the whole property. The latter means that you own a separate share of the property and that if one of you dies, that person's share goes to their heirs or beneficiaries. If you omit or misuse the word "jointly," you may create confusion or conflict over who owns what and who inherits what, and you may end up co-owning your property with someone you didn't choose or don't even know!
- You may create legal disputes or challenges over the validity or enforceability of the deed. For example, you may leave room for ambiguity or error if you do not adequately describe the property or its boundaries. This may lead to questions or claims about who owns what part of the land or whether the deed covers the whole property or only a portion of it. You may also face problems with title insurance, taxes, mortgages, liens, easements, or other encumbrances that affect your property rights.
- You may incur additional costs or liabilities to fix or correct the deed. For example, if you discover that your deed has a mistake or an oversight, you may need to hire an attorney to draft a new deed or a corrective deed. You may also need to obtain the consent and cooperation of the other party or parties involved in the deed, which may not be easy or possible. You may end up paying more money and time than you would have if you had hired an attorney in the first place.
These are just some issues that can arise from drafting your deeds. There are many more that I could mention, but I think you get the point.
Your house is probably your most valuable asset and has a lot of emotional and sentimental value. You don't want to risk losing it or having it diminished by a poorly drafted deed to save a few bucks. I strongly recommend hiring a qualified attorney to help you with your deed and ensure it complies with all the relevant laws and standards. It may cost you some money upfront, but it will save you and your family a lot of headaches and expenses in the long run.
what next?
If you think it might be time to think through your estate plan, you can:
- Call us at 720-821-7604 to schedule an "Attorney Evaluation Session" to determine whether our firm would be a good fit for your needs. Or fill out our contact form to have us call you.
- Visit our estate planning page to learn how proactively thinking through your estate plan can protect you and your family, minimize hassle, lower the chance of family discord, and minimize or eliminate taxes.
- Learn more by reading our blog or watching our videos.
