Final answer:
A written instrument that conveys title to real estate once executed and delivered is known as a deed. This legal document is key for property transfers, crucial for establishing ownership for contractual agreements, and necessary for land sales, as in farmland being sold for development.
Step-by-step explanation:
A written instrument that conveys title to real estate or an interest in real estate once it has been executed and delivered is commonly known as a deed. This legal document is essential for the process of transferring property ownership. When a deed is duly executed, it means it has been signed and sealed by the parties involved. Delivery of the deed indicates that the signatories have handed over control of the document, signifying their intent for the deed to be currently operative and effective.
For example, as farming evolves and the sale of land becomes more common due to decreasing profitability in small farms, having an accurate property title is crucial. In order to transfer the farm to another party, such as builders for the development of commercial or residential properties, a proper deed is necessary to legally establish the conveyance.
Furthermore, to enter into contracts regarding a piece of property, one must own the property. Thus, conveying ownership through a deed is a foundational requirement for such contractual agreements.