Kansas Title Insurance Practice Test

A deed serves as a legal document that facilitates the transfer of ownership of real estate from one party to another, thereby establishing who holds the title to the property. This transfer of ownership is an essential aspect of property transactions and is crucial for establishing rights associated with the property.

In contrast, a mortgage serves as a security interest in the property granted by the borrower (the owner) to the lender (the entity providing the loan). This security interest allows the lender to take possession of the property if the borrower defaults on the loan. Thus, a mortgage does not change ownership but secures repayment for the money lent.

Therefore, the distinction between a deed and a mortgage is significant: one is focused on ownership transfer, while the other is concerned with securing a financial obligation. This understanding is fundamental for anyone involved in real estate, as it clarifies the roles each document plays in property transactions.