Deed
A legal document that transfers ownership of real property from one party to another.
Definition
A deed is the legal document that conveys (transfers) ownership of real property from one party (the grantor) to another (the grantee). When you buy a house, you receive a deed — that deed is recorded with the county and becomes the public record of your ownership.
There are several types of deeds with different levels of protection. A General Warranty Deed provides the buyer with the broadest protection — the seller guarantees clear title going back to the property's entire history. A Special Warranty Deed covers only the period the seller owned the property. A Quitclaim Deed conveys whatever interest the grantor has — with no warranties — and is commonly used in non-arms-length transfers like adding a spouse or transferring to an LLC.
Investors should always receive at minimum a Special Warranty Deed in a standard purchase. Quitclaim deeds are acceptable in specific creative finance scenarios but carry risk — you're taking whatever title the seller has, including any clouds, liens, or disputes.
Related Terms
Title
Legal ownership rights to a property — the bundle of rights that come with owning real estate.
Lien
A legal claim against a property that secures payment of a debt or obligation.
Closing Costs
Fees and expenses paid at settlement when a real estate transaction is finalized.
Due Diligence
The investigation and verification process buyers conduct before committing to a real estate purchase.
Purchase Agreement
The legal contract between buyer and seller that outlines the terms of a real estate transaction.
Also in "D"
Days on Market (DOM)
The number of days a property has been listed for sale before going under contract.
Debt Service
The total cash required to cover loan payments — both principal and interest — over a given period.
Double Close
Two simultaneous closings on the same property — an investor buys from the seller then immediately sells to the end buyer.