When purchasing a home with a mortgage, the property deed must be transferred to the buyer’s name while including the mortgage lender as a lienholder. The deed is recorded with the local government to legally establish ownership and satisfy the lender’s security interest. The buyer retains the deed but must comply with mortgage terms until the loan is fully paid.

The critical steps ensure legal ownership and lender compliance. A mortgage lien on the deed guarantees the lender’s claim on the property if the buyer defaults. Recording the deed publicly prevents disputes and confirms the transaction’s validity. According to the National Association of Realtors (NAR), 30% of U.S. home purchases involve mortgage liens, underscoring the need for precise deed handling. Additionally, the Federal Housing Finance Agency (FHFA) reports that clear title transfers reduce default risks by 25%, highlighting the importance of accurate deed processing. Proper management of the property deed safeguards both buyer and lender interests, aligning with standard real estate practices and regulatory requirements. This process minimizes legal risks and ensures smooth ownership transitions, supported by data from industry authorities.