National Real Estate Practice Exam

Which document is crucial for transferring ownership of real property?

1. Mortgage

2. Deed

3. Lease

4. Title

The correct answer is: Deed

The deed is a vital document in the transfer of ownership of real property. It serves as the legal instrument that conveys the title of the property from the seller (grantor) to the buyer (grantee). A deed outlines the specific details of the transaction, including a detailed description of the property, the names of the parties involved, and any pertinent covenants or conditions associated with the transfer. When a deed is executed and delivered, it legally transfers ownership, making it an integral component of real estate transactions. Other documents, such as mortgages, leases, and titles, serve different purposes in the realm of real estate. A mortgage establishes a lender's claim against the property as security for a loan. A lease creates a tenancy agreement between the landlord and tenant, outlining the terms of rental occupancy. Title refers to the legal ownership of the property but is not a document in itself; rather, it is an abstract concept represented by deeds and other legal documents. Thus, the deed is specifically necessary for the purpose of transferring ownership.