Deed
What Is a Deed?
A deed is a legal document that transfers ownership of real property from one party to another.
It formally conveys title and must be signed and recorded with the appropriate government office.
Common types include:
- Warranty Deed
- Quitclaim Deed
- Special Warranty Deed
Why It Matters in a Mortgage
The deed establishes legal ownership.
When you take out a mortgage, you receive title to the property through a deed, while the lender places a lien on that property as security.
Without a properly recorded deed, ownership cannot be legally transferred.
How It Works
- Seller signs deed transferring property to buyer.
- Deed is recorded in public records.
- Ownership rights are legally established.
Recording protects against future ownership disputes.
Deed vs. Mortgage
Deed → Transfers ownership
Mortgage → Secures loan against property
They serve separate legal purposes.
FAQs About Deeds
Does a deed prove you own a home?
Yes, a recorded deed establishes legal ownership.
Can someone be removed from a deed?
Ownership changes require a new deed and legal transfer.
Is a deed required for refinancing?
The original deed remains; refinancing replaces the lien, not ownership.
Related Terms
