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 California, a mortgage deed, also commonly referred to as a 'deed of trust,' is the document that secures a loan by using real property as collateral. The essential elements for a mortgage deed in California include the name of the borrower (mortgagor), the lender (mortgagee), a clear description of the property being mortgaged, the borrower's signature, and an acknowledgment by a notary public. The notary public's role is to verify the identity of the person signing the deed and to ensure that the borrower is signing voluntarily and without coercion. Additionally, for the mortgage deed to be effective, there must be a delivery which implies the borrower's intent to convey the property title to the lender and the lender's acceptance of the deed. In California, the deed must be recorded with the county recorder's office in the county where the property is located to provide public notice of the mortgage. The recording of the deed creates a lien on the property in favor of the lender. It's important to note that while the terms 'mortgage' and 'deed of trust' are often used interchangeably, they involve different legal structures, with the deed of trust involving a third-party trustee. Borrowers should consult with an attorney to understand the specific legal requirements and implications of mortgage deeds in California.