Paralegal Advanced Competency Exam (PACE) Practice Exam

What defines a deed in legal terms?

1. A record of oral agreements

2. A signed document outlining specific actions or relations

3. A summary of a court's decision

4. A plan for property development

The correct answer is: A signed document outlining specific actions or relations

A deed in legal terms is defined as a signed document that outlines specific actions or relations, particularly regarding the transfer of property ownership. This definition is crucial because deeds serve as formal, legally binding instruments that convey real estate from one party to another. A deed must be written, signed by the parties involved, and often must be witnessed or notarized to be enforceable. In contrast, other options do not accurately represent the legal definition of a deed. For example, a record of oral agreements lacks the formal documentation and specificity that a deed entails. A summary of a court's decision relates to judicial outcomes rather than property transactions, and a plan for property development does not serve as a binding legal document relating to ownership or rights. Thus, the characteristics of a deed reflect its foundational role in real estate and property law, emphasizing the necessity of a signed document outlining specific actions or relationships.