What does a deed do in real estate?

A deed is a legal document that serves the primary function of conveying title to or an interest in real estate from one party to another. When a deed is executed and delivered, it formally transfers ownership rights, indicating who is legally recognized as the owner of the property.

It is essential to understand that the deed must be properly drafted, signed, and often notarized to be valid. This process is crucial in real estate transactions, as it ensures legal ownership and the right to use, sell, or otherwise control the property.

The other options do not accurately represent the purpose of a deed. The deed does not function as a contract between real estate agents; instead, contracts exist to establish the working relationship and obligations between agents and clients. Furthermore, while financial obligations are crucial in real estate transactions, these are typically outlined in other documents, such as mortgages or loan agreements, rather than in the deed itself. Lastly, staging a property for sale pertains to marketing strategies for increasing a property's appeal, which is unrelated to the legal transfer of ownership that a deed facilitates.