A mortgage deed is the document that creates a mortgage and grants an ownership interest (lien) to the lender (often a bank) until the loan is paid in full. A mortgage deed usually must include:

• the name of the mortgagor (the borrower);

• words of grant or conveyance in which the mortgagor (borrower) grants or conveys real property to the lender or mortgagee;

• the name of the mortgagee;

• a property description sufficient to identify the mortgaged real property;

• the mortgagor’s signature; and

• an acknowledgment in which a notary public signs and officially stamps the mortgage deed to verify the identity of the person signing the deed and for the mortgagor to declare or acknowledge to the notary that the mortgagor signed the deed willingly and voluntarily and was not coerced into signing it.

And in some states a deed must be delivered to be effective. Delivery of a deed generally includes:

• the grantor’s (mortgagor or borrower) intent to convey title to the property to the grantee (mortgagee or lender)—not just the physical handing over of the deed; and

• the grantee’s (mortgagee or lender) acceptance of the deed as an immediate conveyance of the title to the real property.

Laws vary from state to state and the legal requirements for a valid mortgage deed may be located in a state's court opinions (common law or case law) or in its statutes.

In Arizona, a mortgage deed is a legal document that secures a loan by using real property as collateral. To be valid, it must include the borrower's name, words of grant, the lender's name, a sufficient property description, the borrower's signature, and notarization. Arizona law requires that the mortgage deed be recorded with the county recorder in the county where the property is located to create a valid lien on the property. The recording of the mortgage deed serves as constructive notice to all persons of the contents thereof. The intent to convey and the acceptance of the deed are also essential for the deed's effectiveness. The physical transfer of the deed is not necessary as long as the intent to convey is clear and the lender accepts the deed. Arizona's statutes and case law provide specific guidelines on the execution, delivery, and recording of mortgage deeds to ensure they are legally binding and enforceable.