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A deed is a legal document that serves as evidence of the transfer of property ownership in real estate. It includes the signatures of the transferring party, 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 guarantees that the grantor has legal title to the property, assuring the buyer that the seller owns the property and has the right to sell it. While recording a warranty deed is not mandatory, if it is recorded, the document must be acknowledged.