What does delivery and acceptance refer to in real estate transactions?

In the context of real estate transactions, delivery and acceptance represent essential actions that are necessary to effectuate a transfer of title from the seller to the buyer through a deed. This process involves the seller delivering the deed to the buyer, which signifies the intention to transfer ownership. Acceptance occurs when the buyer agrees to receive the deed, thereby affirming their acceptance of ownership.

This step is critical because, in order for property ownership to change hands legally, both delivery and acceptance must occur. If either step is omitted or improperly executed, the transition of title may not be valid, leading to potential legal disputes over ownership. Delivery ensures that the seller relinquishes control over the property, while acceptance confirms the buyer's willingness to take possession of the property.

Other options, such as the collection of payment or verifying property boundaries, deal with different aspects of the real estate transaction process but do not directly pertain to the legal transfer of title represented by delivery and acceptance. Documentation of property taxes, while important for maintaining clear title and avoiding future disputes, is also not directly related to the transfer of ownership itself.