Deeds are legal instruments.
In broad terms, a deed is a legal document that grants rights to property to a person or entity. Various types of deeds, such as security deeds and title deeds, exist. The term "title" attached to a deed signifies that the deed is a legal instrument showing ownership -- that is, possession of a title. The term "security" often refers to deeds that are used as collateral.
Title Deed
A title deed is a legal document that shows the right to property -- particularly real property -- known as the title. For example, when you buy real estate, you are given a deed, the title to the home. The deed effectively shows your ownership of the property. Similarly, when you buy a car, you are given a title for it. The car's title is also a deed in the strictest sense since the title is evidence of your ownership of the vehicle.
Security Deed
As the names suggests, a security deed is used as a security interest with a loan. Most commonly, security deeds are given to a bank or other financial lender to secure a loan. In other words, a security deed is used in place of a mortgage.
Mortgage Vs. Security Deed
The difference between a security deed and a mortgage is grave. With a mortgage, the legal title (deed) to the property does not pass to the bank for the loan. Rather, the legal titles stays with the buyer (debtor). With a security deed, however, the legal title -- the right to ownership -- actually passes to the lender until the debtor pays off the loan. Then it is returned to the debtor.
Significance
Knowing what kind of deed you're getting or giving away is important. For example, quit claim deeds come with no warranty as opposed to a warranty deed. Similarly, a title to a piece a property might be unmarketable -- that is, you can't sell if it there is a problem with the deed or it's defective or missing.
