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 New York, a mortgage deed is a legal instrument that secures a loan by using real property as collateral. The essential elements of a mortgage deed in New York include the borrower's name (mortgagor), words of grant or conveyance, the lender's name (mortgagee), a sufficient property description, the mortgagor’s signature, and an acknowledgment by a notary public. The acknowledgment is crucial as it confirms the identity of the signatory and that the signing was done willingly. New York law requires that the mortgage deed be recorded with the county clerk in the county where the property is located to be effective against subsequent purchasers or mortgagees. The recording of the mortgage deed constitutes constructive notice to all persons of the contents thereof. Additionally, the delivery of the deed in New York implies the grantor's intent to convey the property title and the grantee's acceptance of the deed. The specific statutes governing mortgage deeds in New York can be found in the New York Real Property Law and the New York Real Property Actions and Proceedings Law. It is advisable to consult with an attorney to ensure that all legal requirements are met for a valid and enforceable mortgage deed in New York.