What does "deed" refer to in real estate?

The term "deed" in real estate specifically refers to a legal document that is utilized to transfer ownership of property from one party to another. This document serves as a formal declaration of the grantor's intention to convey title to the grantee. It includes important details such as the description of the property, the names of the parties involved, and any covenants or restrictions associated with the transfer.

A deed is an essential element in real estate transactions because it legally evidences the change in ownership. It must be executed according to state laws, which often involve proper signatures, dating, and sometimes notarization to ensure its validity. By executing a deed, the seller (grantor) effectively relinquishes ownership rights to the buyer (grantee), making it a crucial step in the buying and selling process.

In contrast, other choices pertain to different aspects of real estate:

• A document outlining property tax obligations does not relate to ownership transfer.

• A property inspection report is an assessment of a property's condition, not a legal transfer document.

• A rental contract pertains to lease agreements, ensuring terms of occupancy but does not convey ownership.

Thus, understanding the role of the deed is fundamental for anyone involved in real estate transactions, as it fortifies