What is the primary purpose of a deed in a real estate transaction?

The primary purpose of a deed in a real estate transaction is to transfer legal ownership of the property. A deed is a legal document that serves as proof of that transfer and must be executed according to specific legal requirements. When a deed is signed and delivered, it conveys the ownership rights from the seller to the buyer, making the buyer the official owner of the property.

While outlining the terms of sale and specifying payment plans are important aspects of the overall transaction, these details are typically addressed in other documents like purchase agreements or contracts rather than the deed itself. Additionally, although a deed does provide a record of the property transfer once it is recorded in the land records, its primary function remains the actual transfer of ownership. Thus, the focus of the deed is on establishing and formalizing the change in legal ownership.