ALTA Practice Exam – Complete Prep Resource

A deed is the primary document used to transfer ownership of real estate from one party to another. It serves as the legal proof of the transfer and typically includes essential details such as the grantor (seller), grantee (buyer), legal description of the property, and the signature of the grantor. The deed must also meet specific legal requirements to be considered valid, which may include notarization and recording with the appropriate government office.

In contrast, a mortgage note outlines the borrower's promise to repay a loan and details the loan's terms but does not convey ownership of the property. A sales contract is an agreement outlining the terms of the sale between a buyer and seller but, by itself, does not transfer legal ownership. Lastly, a closing statement summarizes the financial transactions and details that occur during the closing of the sale but is not a document that establishes or documents the transfer of ownership. Thus, the deed is the clearly defined instrument for transferring title in real estate transactions.