In Missouri, property deeds and trusts serve different but often overlapping roles in real estate ownership and financing. Most property transactions are recorded through the local County Recorder of Deeds, such as the St. Louis City Recorder of Deeds.
Key Types of Missouri Deeds
Warranty Deeds: Provide the highest level of protection, guaranteeing the owner has a clear title and the right to sell the property.
Quitclaim Deeds: Commonly used to transfer property between family members or into a trust; they offer no guarantees about the title's status.
Beneficiary Deeds: A unique Missouri tool that allows property to transfer automatically to a named beneficiary upon the owner's death, bypassing probate.
Understanding the "Deed of Trust"
Unlike many states that use mortgages, Missouri primarily uses a Deed of Trust for real estate loans:
Security: It transfers the property title to a third-party trustee to hold as security for the lender.
Power of Sale: These documents typically include a "power of sale" clause, allowing for non-judicial foreclosure if the borrower defaults, which is faster than a court-ordered foreclosure.
Release/Reconveyance: Once the loan is paid in full, the title is returned to the owner.
Using Living Trusts for Property
Many Missourians use a Revocable Living Trust to manage property and avoid probate:
Transferring Property: To include real estate in a trust, you must sign a new deed (often a Quitclaim or Warranty deed) that changes the owner from yourself to the Trustee of the Trust.
Privacy: Unlike deeds, which are public records, the internal details of a trust are generally private and not filed with the court.
Recording Requirements: To be valid for public record, documents must meet specific Missouri formatting standards, such as using at least 8pt font and leaving a 3-inch top margin on the first page.
