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A deed is a legal document that serves as evidence of property ownership transfer in real estate. It includes the signatures of the person transferring ownership, the transaction date, the names of the involved parties, and a description of the property. The video focuses on two types of deeds: the general warranty deed and the special warranty deed. A warranty deed provides the grantee with a guarantee that the grantor holds legal title to the property, assuring the buyer that the seller has the right to sell it. While recording a warranty deed is not mandatory, if it is recorded, the document must be acknowledged.