What is a deed in real estate?

A deed in real estate is specifically a legal document that serves to transfer ownership of property from one party to another. It is a formal agreement that outlines the details of the property being transferred, including the names of the grantor (the seller) and grantee (the buyer), as well as a description of the property itself. The execution of a deed is a crucial step in a real estate transaction, as it provides the proof of ownership and is required to legally establish title in the buyer's name.

This document must also be properly signed, and in most jurisdictions, it must be recorded in the appropriate government office to provide public notice of the ownership change. The recording of the deed helps to protect the grantee's interest in the property against future claims.

In contrast, the other options do not pertain to the transfer of property ownership. A record of property taxes relates to the financial responsibilities associated with property ownership, an insurance policy covers risks related to property damage rather than ownership transfer, and a lease contract pertains to the rental of property rather than its ownership. Each of these documents plays an important role in real estate, but only the deed specifically addresses the transfer of title.