The transfer of real property is accomplished through a deed, a legal document that conveys ownership from one party to another. Several deed types offer different levels of protection. A warranty deed transfers ownership with broad guarantees about the title, while a special warranty deed limits those guarantees to issues that arose during the seller's period of ownership. A quitclaim deed simply transfers whatever interest the grantor may have, without any warranties, making it common in family transfers or clearing up title questions.
Title refers to legal ownership of property, and a clear title is one that is free of liens, claims, or other encumbrances. Before a sale closes, a title search examines public records to verify the property's ownership history—the chain of title—and confirm there are no hidden defects. To protect against claims that might later arise, buyers and lenders typically purchase title insurance. Title can be held in several ways—a process known as title vesting—including joint tenancy, which includes a right of survivorship among co-owners, tenancy in common, which allows each owner to bequeath their share independently, and community property, a marital property regime used in some U.S. states.
Property can be burdened by a number of claims and restrictions. A lien is a legal claim against property used as security for a debt, while an encumbrance is any claim or restriction that limits the property's use or transfer. An easement grants a specific party the right to use another's property for a particular purpose, such as utility lines or shared driveways. A contractor's lien allows unpaid contractors to place a legal claim against improved property. In planned communities, a homeowners association (HOA) governs common areas and enforces covenants, conditions, and restrictions (CCRs), with members paying HOA fees to fund community maintenance and amenities.
Government regulation plays a significant role in how land may be used. Zoning is the system of local regulations that define permitted uses of land, with common categories including residential, commercial, industrial, agricultural, and mixed-use. A property owner may request a variance—a special exception allowing a use outside the zoning rules—or may continue operating under a non-conforming use, which was legal when established but no longer complies with current zoning. Construction typically requires a building permit, and a certificate of occupancy confirms that a building is safe and ready for use. Setbacks mandate minimum distances between structures and property lines. In some unusual circumstances, ownership rights can shift through legal doctrines. Adverse possession allows a person to acquire title to property through long, open, and hostile occupancy that meets statutory requirements. Eminent domain, meanwhile, gives the government the power to take private property for public use, with the owner entitled to just compensation—typically the property's fair market value. The formal legal process by which this power is exercised is called condemnation.