Which of the following best describes a deed?

A deed is fundamentally a formal legal document that is instrumental in the transfer of title to real property. It serves as a written instrument outlining ownership, delineating the specific rights being transferred, and identifying both the grantor (the person transferring the title) and the grantee (the person receiving the title).

Deeds must meet certain legal requirements to be considered valid, including the necessity for the grantor to sign it, a clear description of the property, and typically, acknowledgement before a notary. This formality underscores the serious nature of property conveyance, making it distinct from other types of agreements or documents that might describe property or outline informal arrangements.

The incorrect choices highlight different aspects related to property but do not accurately represent the essence of a deed. Listing characteristics of property pertains more to property description or appraisal, while a contractual agreement to transfer ownership could relate to a broader category of real estate transactions, including contracts of sale that have not yet resulted in a completed transfer of title. Lastly, an informal arrangement concerning property use typically refers to informal leases or licenses that do not affect the title itself, which is not the primary function of a deed.