What is a "deed" in real estate?

A "deed" in real estate is fundamentally a legal document that formally transfers ownership of real property from one party to another. This transfer of title is documented and typically requires the signature of the grantor (the person selling or giving away the property) and often needs to be notarized to be valid. The deed provides an official record that the ownership has changed and is essential for establishing legal rights over the property.

The significance of a deed lies in its clarity and authority. It not only contains descriptions of the property but also delineates any specific conditions of the transfer, such as guarantees about the property, the presence of any liens, or encumbrances. Therefore, its role in establishing and conveying property ownership is central to real estate transactions.

The other choices do not represent a deed correctly. A deed is not a temporary document or merely a verbal agreement; it requires formalization and documentation to effectuate ownership transfer. Additionally, while a deed may contain information about financial obligations, such as existing mortgages or liens, it is not a record of these obligations per se. Instead, financial obligations would typically be documented in other forms, such as a mortgage agreement or lien documents.