Massachusetts Real Estate License Practice Test

Which document conveys ownership of real estate?

1. Bill of sale

2. Lease agreement

3. Deed

4. Purchase agreement

The correct answer is: Deed

The document that conveys ownership of real estate is a deed. A deed is a legal instrument that formally transfers title and ownership of property from one party to another. It contains a description of the property being conveyed and is typically signed by the grantor (the person transferring the property) in the presence of a notary or witnesses, depending on state requirements. In contrast, a bill of sale generally pertains to the transfer of personal property rather than real estate. A lease agreement outlines the terms of renting a property and does not change ownership; it simply grants the lessee the right to use the property for a specified period while the lessor retains ownership. A purchase agreement is a contract between a buyer and a seller detailing the terms of a sale, but it does not transfer ownership until a deed is executed and delivered. Thus, the deed is the definitive document that actualizes the transfer of ownership rights in real property.