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 Vermont, a mortgage deed is a legal document that secures the loan provided by the lender (often a bank) by creating a lien on the property until the loan is repaid in full. The essential elements that must be included in a mortgage deed in Vermont are similar to those outlined in the description: the names of the mortgagor (borrower) and mortgagee (lender), words of grant, a sufficient property description, the mortgagor’s signature, and an acknowledgment by a notary public. Vermont law requires that the mortgage deed be recorded in the town or city land records where the property is located to be effective against subsequent purchasers or encumbrancers of the property. The recording of the mortgage deed serves as constructive notice to the public of the lender's interest in the property. Additionally, for a deed to be considered delivered in Vermont, there must be a clear intention by the grantor to transfer title and acceptance by the grantee. The specific statutes governing the execution and recording of mortgage deeds in Vermont can be found in Title 27 (Property) of the Vermont Statutes Annotated.