What legal documentation is necessary if funds include real estate?

When dealing with funds that include real estate, it is essential to ensure that proper legal documentation is in place to establish ownership and the terms of the transaction. A deed recording is required because it serves as a formal record of the transfer of ownership of the property. Recording the deed protects the rights of the new owner and provides public notice of their interest in the property, which is crucial in real estate transactions. This legal process also helps prevent disputes over ownership and establishes a clear chain of title.

The other options do not adequately meet the legal requirements for transferring or managing real estate. A simple agreement may not provide the necessary legal protection or clarity regarding ownership rights. A trust agreement, while useful in managing assets, does not replace the need for a deed to officially record the transfer of real estate. Stating that no documentation is necessary disregards the legal protocols established for real estate transactions, which are designed to protect all parties involved.