Canada Mortgage Professionals Practice Exam

A deed in property transactions is a legal document specifically designed to transfer ownership of real property from one party to another. It serves as a formal record that indicates who the current owner is and the terms under which the property is being transferred. The deed includes essential information such as the names of the parties involved, a description of the property, and often details regarding any conditions or covenants associated with the transfer.

This definition highlights the deed's primary function as a conveyancing instrument, marking the transition of ownership rights. In real estate transactions, the deed is a crucial element because it legally establishes the new owner's rights and interests in the property.

Other options represent concepts that, while related to property transactions, do not accurately describe a deed. For instance, financing documents are separate legal instruments that outline the terms for borrowing funds to purchase property, whereas rental contracts pertain to lease agreements that allow for temporary occupancy rather than ownership transfer. Descriptions of property boundaries help define the physical limits of a property but do not encapsulate the ownership transfer aspect of a deed.