Deed

What Is a Deed?

A deed is a signed legal document that transfers ownership of, or an interest in, real property from one person or entity to another. The person giving up the property is the grantor, and the person receiving it is the grantee. Deeds are the standard way ownership of land and buildings changes hands, and they are central to most home sales and other property transfers.

How a Deed Works

For a deed to be valid, it generally must be in writing, identify the parties and the property, and be signed by the grantor. Many jurisdictions also require it to be notarized. Once signed, the deed is usually recorded with a local government office, such as a county recorder, which places it in the public record. Recording gives notice of the ownership change and helps establish which competing claims take priority.

Deeds are often delivered at closing, commonly through an escrow arrangement, when the buyer pays the purchase price and frequently obtains a mortgage.

Common Types of Deeds

• General warranty deed: The grantor guarantees good title against defects that arose at any time, including before the grantor owned the property.
• Special warranty deed: The grantor guarantees title only against defects that arose during the grantor's own period of ownership.
• Quitclaim deed: The grantor transfers whatever interest they hold, if any, without guaranteeing that the title is clear.

Quitclaim deeds are often used between family members or to correct title problems, but they give the grantee limited protection against prior claims.

Why Deeds Matter to Investors

The deed is the key record of who owns a property. Before buying, a purchaser typically arranges a title search to review past deeds and check for unpaid debts or other lien claims. Because a warranty deed is only as strong as the grantor's ability to honor it, buyers often also purchase title insurance to protect against defects the search may have missed. A deed confirms ownership, but it does not verify the property's physical condition or market value.