Deed

A deed is the legal document that transfers ownership of a property from a seller to a buyer. Once it is signed, delivered and registered in the provincial land registry, the buyer's name replaces the seller's on title. The deed is the instrument of transfer; it is not the mortgage contract itself.

What a deed contains

A deed names the parties, describes the property by its legal description, states the consideration paid, and sets out the seller's covenants about the state of the title. The buyer's lender takes a charge against that title, so the transfer and the new mortgage are usually registered together on closing day. The document is prepared from the agreement of purchase and sale and the title search, then signed by the seller and witnessed.

The name changes by province

Canada has no single national land registry; each province runs its own system, so the same instrument carries different labels.

• Alberta, Manitoba, Saskatchewan and most Atlantic provinces: a transfer of land, often still called a deed.
• Ontario: a prescribed provincial transfer form, commonly referred to as a deed.
• British Columbia: a transfer of land registered under the Land Title Act.
• Quebec: ownership of an immovable generally passes by notarial deed before a notary and is registered in the land register.

Why it matters to a borrower

Lenders will not advance funds until they can register a valid charge against clear title, so a defective deed can delay or derail a closing. Common problems include a misspelled name, a wrong legal description, or missing spousal consent. The value stated on the transfer document is also the basis for land transfer tax in most provinces, so the figures on it are worth reviewing before signing. A buyer can ask their lawyer or notary to explain the wording before the document is executed.