Contract Glossary

Deed

Definition

A legal document that transfers ownership of property from one person or entity to another. Unlike a regular contract, a deed must be signed, witnessed, and delivered to be effective. Most people encounter deeds when buying or selling real estate.

In Practice

When you buy a building for your business, the seller signs a deed transferring ownership to you. The deed is then recorded with your county's recorder of deeds, creating a public record of your ownership. There are different types, warranty deeds (seller guarantees clear title) and quitclaim deeds (seller transfers whatever rights they have, with no guarantees).