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 ownership of the property. A deed is a legal document that signifies the transfer of title from one party to another, indicating who the current owner is and who is receiving ownership rights. It serves as an official record of the transfer and legitimizes the ownership change under the law.

While a deed may provide a legal description of the property, that is not its primary purpose but rather a supporting detail that helps identify the property involved in the transaction. Additionally, receipts for payment and terms of a loan are typically documented through other types of paperwork, such as a bill of sale or a mortgage agreement, and are not the focus of a deed's function. Thus, understanding that the deed's core role is ownership transfer is crucial in real estate practice.