Deed Execution

• The property deed is the operative legal document that dictates conditions of real estate transfers. In order to be valid, the deed must be legally executed. A valid property deed must be in writing and signed by the grantor, and must also contain language that demonstrates the grantor's intent to permanently relinquish his ownership of the property. The deed should somehow clearly identify the property being transferred (by address, parcel number, physical description, etc.)
  
  

Deed Delivery

• Once a deed has been validly executed, it must still be legally delivered in order to take effect. Delivery means that the grantor somehow demonstrates his intent for the deed to take effect, immediately or upon fulfillment of conditions set out in the deed. Common delivery methods include physical hand-over and deposit of the deed with a third party (often an escrow agent) while the grantee fulfills the conditions of sale. Deeds must also be accepted by the grantee, although most states presume acceptance in absence of evidence to the contrary.
  
  

Recording

• Once a property deed has been executed and delivered to the grantee, the grantee usually records the deed with the county recorder's office. The deed is valid without recording, but the recording system serves several functions. A recorded deed provides a record of ownership for any future purchasers to check, and in most states, documents that have been officially recorded can serve as evidence in court. Recording generally also requires acknowledgment of the deed by a notary public.
  
  

Warranties of Title

• Different types of deeds contain different promises about the exact ownership interest being conveyed. A general warranty deed, for example, contains promises from the grantor to the grantee that the grantor owns good title to the property; the grantor also promises to defend the grantee's title if anyone should challenge it. By contrast, a quitclaim deed contains no promises at all regarding the quality of the grantor's title, only a promise to convey whatever interest in the property the grantor may own.
  
  

Reformation of Deeds

• Occasionally, one or both parties to a deed may claim that the deed's language does not reflect the party's agreement and intentions. Such a flaw in the deed may be caused by misunderstanding between the parties, or an error by the scrivener (the one who draws up the deed). In such cases, a court may agree to reform the deed, meaning the court rewrites the deed to show the parties' meaning. However, if just one party claims misunderstanding (this is known as unilateral mistake), courts will only reform the deed accordingly if the claimant can prove bad faith on behalf of the other party.