What is a tax deed?

A tax deed is specifically a conveyance used for properties sold at tax foreclosure sales. It is issued to transfer ownership of a property when the prior owner fails to pay property taxes, resulting in the property being acquired by the government, which subsequently sells it to recover the unpaid taxes. The tax deed serves as proof that the new owner has acquired the property legally, despite the outstanding taxes that were due.

This understanding highlights the importance of tax deeds in real estate transactions related to tax delinquencies, reflecting their role in transferring property rights during such sales. The other options illustrate different aspects of real estate and legal documents, but they do not pertain to the function of a tax deed, which is narrowly focused on the transfer of ownership following tax foreclosure.