National Real Estate Practice Exam

What is the primary purpose of a deed?

1. Transfer of title

2. Proof of ownership

3. Recordation

4. Legal evidence

The correct answer is: Transfer of title

The primary purpose of a deed is the transfer of title. A deed is a legal document that conveys ownership of real estate from one party to another. It is essential in real estate transactions because it formally establishes who holds the title to a property. When a deed is executed properly, it signifies that the seller (grantor) is transferring their ownership rights to the buyer (grantee). This transfer of title is a critical step in property transactions, ensuring that the new owner has a clear title to the property without any claims from others. While proof of ownership, recordation, and legal evidence are related to the deed, they are secondary to the deed's primary function. Proof of ownership can be established through various means, including the deed itself and other documentation. Recordation is the process of filing the deed with the appropriate government office to provide public notice of the ownership transfer, but it does not constitute the primary function of the deed. Legal evidence pertains to how deeds can be used in court to establish ownership or rights over the property but again does not encapsulate the main purpose of a deed. Thus, the emphasis on the deed's role in the transfer of title highlights its foundational significance in real estate transactions.