What is a "deed" in real estate?

A deed in real estate is a crucial legal instrument that serves the specific purpose of transferring ownership of real property from one party to another. When a deed is executed and delivered, it signifies the change in title, ensuring that the new owner has the legal right to the property. This document must typically be in writing and include essential details such as the names of the parties involved, a legal description of the property, and sometimes the signature of the grantor (the person transferring the property).

Understanding the function of a deed is fundamental in real estate since it encapsulates the principles of property law and ownership transfer. It is a distinct legal document separate from contracts, financial documents, or insurance policies, each of which serves different roles in the real estate transaction process. Thus, identifying a deed as a legal document specifically focused on the transfer of property ownership reinforces its importance in real estate transactions.