What documentation is typically required in a real estate transaction to establish ownership?

The deed is a crucial document in a real estate transaction as it serves as the legal instrument that conveys ownership from the seller to the buyer. When a property is sold, the deed is executed to formalize the transfer of ownership rights, ensuring that the new owner is recognized by law. It includes essential information such as the names of the parties involved, the legal description of the property, and the signature of the grantor (seller).

In contrast, while a sales contract outlines the terms and conditions of the sale, it does not itself transfer ownership; it is merely an agreement to transfer ownership in the future. A closing statement summarizes the financial transactions occurring at the closing, detailing costs and distributions, but it does not establish ownership. Similarly, a property disclosure form provides information about the property's condition but does not serve as evidence of ownership. Hence, the deed stands out as the definitive document that proves and formally transfers ownership of real estate.