California Real Estate Practice Exam

How is personal property generally transferred?

1. Lease agreement

2. Bill of sale

3. Deed of trust

4. Warranty deed

The correct answer is: Bill of sale

Personal property is generally transferred through a bill of sale, which serves as a written document that outlines the sale and transfer of ownership from the seller to the buyer. The bill of sale typically includes details such as a description of the personal property, the names of the parties involved, and the sale price. This document provides legal proof of the transaction, making it essential for establishing ownership and protecting the rights of both the buyer and the seller. In contrast, a lease agreement pertains to the rental of property rather than a transfer of ownership, indicating that the lessee has temporary rights to use the property without being the owner. A deed of trust is used in real estate to secure a loan and is not applicable for transferring personal property. Similarly, a warranty deed is used for transferring real property and carries specific covenants regarding ownership and the condition of the property but does not apply to personal property transfers.