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 Colorado, 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. The deed must also be delivered with the intent to convey title, and the lender must accept it. Colorado law requires that the mortgage deed be recorded with the county recorder or clerk and recorder in the county where the property is located to protect the lender's interest and to provide public notice of the lien. The recording of the mortgage deed creates a lien on the property, which remains until the loan is paid in full. If the borrower defaults on the loan, the lender may foreclose on the property to recover the outstanding debt. Colorado statutes and case law provide specific details on the execution, delivery, and recording of mortgage deeds to ensure their validity and enforceability.