Which document is essential in proving ownership in a mortgage transaction?

The title deed is fundamental in establishing ownership in a mortgage transaction because it is the legal document that confirms who holds title to the property being financed. The title deed includes important information such as the property’s legal description and the name of the current owner. It serves as public record and demonstrates the right of the owner to sell or encumber the property. In the context of a mortgage, ensuring that the title is clear and that there are no encumbrances is crucial for both the lender and the borrower.

Other documents, such as the loan application or credit report, are indeed important for assessing the borrower’s creditworthiness and ability to repay the loan, while a property appraisal report assesses the value of the property. However, none of these documents provide direct proof of ownership, which is the primary function of the title deed in a mortgage transaction.