What is a deed in real estate?

A deed in real estate is fundamentally a written instrument that conveys title or interest in property. This means that when a deed is executed, it legally transfer ownership from one party to another. The deed includes crucial elements such as the names of the parties involved, a description of the property, the signature of the grantor (the person transferring the property), and often a notarization.

The written nature of a deed is essential because it serves as public documentation of property transfer, providing a clear record that can be referenced in the future to confirm ownership. This encompasses the legal requirements and formalities necessary to ensure that the transfer is recognized and enforceable under the law.

In contrast, a verbal agreement for property sale, while it may represent the intentions of the parties, lacks the legal standing needed for ownership transfer. An official government document typically would not refer specifically to a deed, as deeds are specific to private transactions rather than government documentation. Lastly, a financial instrument securing a loan, such as a mortgage, serves a different purpose entirely—it does not transfer ownership but rather involves securing a loan against the property.