Which document is essential for transferring ownership of real estate?

The essential document for transferring ownership of real estate is a deed. A deed serves as a legal instrument that conveys title from one party to another, detailing the property being transferred and the grantor (seller) and grantee (buyer). It must be executed properly to be valid, often requiring signatures, notarization, and, in some cases, witnesses. The deed serves as proof of ownership and is recorded in the county where the property is located, providing public notice of the ownership change.

Other documents, while important in real estate transactions, do not perform the actual transfer of title. A settlement statement outlines financial details about the closing transaction but does not convey ownership. An appraisal report provides an estimate of the property's value but has no role in transferring ownership. A title insurance policy protects against future claims to ownership but is not involved in the actual act of transferring title. Thus, the deed is the critical document that completes the transfer of real estate ownership.