What is a deed?

A deed is fundamentally a legal document that facilitates the transfer of ownership of real property from one party to another. This essential instrument serves as proof of ownership and outlines the specifics concerning the property being transferred, including its description, the parties involved in the transaction, and any conditions that may apply to the transfer.

Understanding the role of a deed is crucial in real estate transactions, as it ensures that the transfer of property is conducted legally and provides a public record of the new ownership, which is typically filed with a government office, such as the county recorder’s office. This establishes the title and helps protect the rights of the new owner.

The other options represent different concepts in real estate. The first choice describes a lease, which allows for the temporary use of a property rather than the transfer of ownership. The second choice refers to a mortgage agreement, which is a financing instrument rather than a document of ownership transfer. Lastly, calculating property taxes involves assessments related to property value but does not pertain to ownership transfer. Thus, the key function of a deed as a transfer tool makes the correct response clear.