Which document is often required in a real estate transaction to verify legal ownership?

The deed is the document that is often required in a real estate transaction to verify legal ownership. A deed is a legal instrument that conveys title from one party to another and is essential in establishing who owns a property. It includes the names of the grantor (seller) and the grantee (buyer), a description of the property, and it must be signed and often notarized to be valid.

This document is recorded in public records, thereby giving notice to the world about the ownership of the property. While other documents such as the sales contract outline the terms of the transaction, they do not serve as proof of legal ownership. The promissory note is related to the financing of the property and outlines the borrower's promise to repay a loan, and the inspection report pertains to the condition of the property rather than ownership. Thus, the deed is the definitive document that confirms and conveys legal ownership in real estate transactions.