Which document is used to transfer ownership of a property?

The correct answer is a deed, as this document serves the essential function of transferring ownership of real property from one party to another. A deed contains specific information about the property and the parties involved, and it must be executed in accordance with state laws to be valid. It typically includes details such as the names of the grantor (seller) and grantee (buyer), a legal description of the property, and the signatures of the relevant parties.

In Michigan, as in many other jurisdictions, once a deed is duly executed and delivered, ownership rights are effectively transferred to the buyer. This instrument is recorded in the public land records to provide evidence of the transfer and protect the interests of the grantee.

The other documents mentioned serve different purposes. A lease is a contractual agreement that allows one party to use a property while the owner retains ownership. A mortgage is a type of loan specifically used to fund the purchase of real estate, wherein the property serves as collateral for the loan. A trust agreement relates to the management of property within a trust and does not directly facilitate the transfer of ownership. Knowing the distinct functions of these documents is vital for anyone studying real estate principles and transactions.