NCEES Principles and Practice of Surveying Practice Exam

What is the primary function of a Deed?

1. To establish property boundaries.

2. To transfer title from one party to another.

3. To serve as a mortgage agreement.

4. To guarantee rental agreements.

The correct answer is: To transfer title from one party to another.

The primary function of a deed is to transfer title from one party to another. A deed is a legal document that serves as evidence of property ownership and conveys the rights to the property from the grantor (the seller) to the grantee (the buyer). This transfer of title is crucial because it signifies the change of ownership and the legal standing of the property. When executed properly, a deed provides a clear record that can be referenced in the future, indicating who owns the property at any given time. This aspect of a deed makes it an essential tool in real estate transactions, as it not only facilitates the sale but also protects the interests of both parties involved in the transaction. In contrast, while a deed may contain provisions related to property boundaries, it is not its primary function. Similarly, the deed does not serve as a mortgage agreement or guarantee rental agreements; these are separate legal documents with different purposes. Understanding the role of a deed in property transactions is fundamental for surveying and real estate practices.