How is the legal title to property conveyed in a real estate sale?

In a real estate sale, the legal title to the property is conveyed through a warranty deed. A warranty deed is a legal document that guarantees that the seller has clear title to the property and the right to sell it. It provides the buyer with certain assurances, such as the promise that the property is free of liens or encumbrances, except for any that may be expressly mentioned in the deed. This assurance is crucial because it protects the buyer's investment and provides a legal recourse should any ownership disputes or claims arise after the purchase.

Verbal agreements do not convey legal title, as real estate transactions must adhere to statutory requirements, which include written documentation to ensure clarity and enforceability. Additionally, while securing financing is an important step in the buying process, it does not itself transfer ownership of the property. Signing a contract is a necessary step in the buying process, but it alone does not transfer legal title; the actual transfer occurs through the execution and delivery of the warranty deed. Thus, the warranty deed plays a central role in the formal conveyance of property ownership in real estate transactions.