What is a "deed" in real estate?

A deed is fundamentally a legal document that conveys title to real property from one party to another. This means that when a deed is properly executed and delivered, it formally transfers ownership rights in the property to the grantee. The deed contains essential information, such as the names of the parties involved, a description of the property, and any relevant conditions or covenants.

In the context of real estate transactions, a deed is crucial because it serves as the official record of ownership, providing evidence that the new owner has legal rights to the property. The transfer of title through a deed is what ultimately makes the buyer the owner of the property, distinguishing it from other documents that might be related to the transaction, such as contracts or tax receipts, which serve different purposes.

For example, options referring to a contract for purchasing property or a formal declaration of sale do not reflect the function of a deed. A contract outlines the agreement between the buyer and seller but does not effectuate the transfer of title. Similarly, a receipt for paying property taxes is simply proof of payment and does not convey ownership rights. Understanding the role of a deed is essential for anyone involved in real estate transactions.