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 Virginia, a mortgage deed is a legal document that secures a loan by using real property as collateral. The essential elements that must be included in a mortgage deed are the borrower's name, words of grant or conveyance, the lender's name, a sufficient property description, the borrower's signature, and an acknowledgment by a notary public. The acknowledgment serves to confirm the identity of the signatory and that the signing was done willingly and without coercion. Virginia law also requires that for a deed to be effective, there must be delivery, which involves the borrower's intent to convey the property title and the lender's acceptance of the deed. The specific legal requirements for a valid mortgage deed in Virginia can be found in the state's statutes, which may be supplemented by common law or case law precedents. It is important for parties involved in a mortgage transaction to ensure that the mortgage deed complies with Virginia's legal requirements to avoid any issues with the validity of the lien or during the foreclosure process, should it become necessary.