What function does a deed serve in real estate transactions?

In real estate transactions, a deed serves the crucial function of transferring ownership of real property from one party to another. This legal document contains the necessary details to identify both the grantor (seller) and grantee (buyer), as well as a description of the property being conveyed. The deed's execution and delivery signify the completion of the transfer of title, ensuring the buyer receives clear ownership rights.

It's important to note that while a deed is central to the transfer of ownership, it does not play a role in determining the property's tax value, setting the market price, or establishing lending terms, which are handled through separate processes and agreements. The deed is specifically focused on the conveyance of legal title, making it a foundational element in real estate transactions.