What is the legal significance of a deed?

A deed is a legal document that serves as the official means of transferring ownership of real property from one party to another. The primary significance of a deed lies in its ability to convey title, which means it establishes the legal ownership of the property. When a deed is executed properly—meaning it is signed, delivered, and typically recorded—it signifies the intention of the grantor (the person transferring the property) to transfer their interest in the property to the grantee (the person receiving the property). This transfer is critical in real estate transactions because it provides a clear and enforceable record of ownership.

The other options, while relevant in the context of real estate and property management, do not capture the core function of a deed itself. Loan agreements are separate documents used to secure financing for the purchase of property, and while property taxes are tied to property ownership, they are typically documented through tax assessment notices, not deeds. Similarly, rental agreements are contracts reflecting the terms of leasing property, which do not involve the transfer of ownership and are different from deeds that convey title.