California Real Estate Practice Exam 2026 – 400 Free Practice Questions to Pass the Exam

A valid deed must adhere to several key requirements for it to be legally binding and enforceable. Among these, delivery, consideration, and the naming of a grantee are fundamental elements.

Delivery indicates that the grantor has genuinely transferred the title to the grantee. This is essential as it signifies the grantor's intent to convey ownership, making the transfer of property official.

Consideration is another critical component, representing something of value exchanged between the parties involved. Although it can take the form of money, services, or other assets, a deed must demonstrate that at least some consideration is being offered for the property to validate the transaction.

Naming a grantee is necessary as well because a deed without a specific grantee—whether an individual or an entity—would fail to fulfill its purpose of transferring ownership. The grantor must clearly identify who is receiving the property rights.

In contrast, acknowledgment, which involves a notary public confirming the identities of the parties and their signatures, while important for the deed's recording and evidential purposes, is not a strict requirement for the deed's validity. A deed can be valid without formal acknowledgment, meaning the absence of this step does not invalidate the transfer of property.