The primary document used to convey permanent interests in real property is a
A sales contract
B mortgage
C lease
D deed
The correct answer and explanation is:
The correct answer is D. deed.
Explanation:
A deed is the primary legal document used to convey permanent interests or ownership in real property from one party to another. It is a written instrument that transfers the title of land or real estate. The deed legally proves ownership and describes the property being transferred, the parties involved, and the nature of the transfer.
Here’s why the other options are not correct for conveying permanent interests:
- A. Sales Contract:
A sales contract (or purchase agreement) is an agreement between buyer and seller outlining the terms and conditions of a property sale. While it establishes the intention to transfer ownership and is critical to the sale process, it does not by itself transfer legal ownership or title. It’s more like a promise or agreement to sell. - B. Mortgage:
A mortgage is a legal instrument used to secure a loan on a property. It creates a lien or security interest in the property for the lender, but it does not transfer ownership. The property owner retains title while the mortgage remains unpaid. - C. Lease:
A lease grants temporary possession and use of real property to a tenant for a specified period but does not transfer ownership or permanent interest. Leases only create a right of possession, not title.
More on Deeds:
- Types of deeds: There are several types of deeds, such as warranty deeds, quitclaim deeds, and grant deeds, each offering different levels of protection to the buyer regarding the title.
- Requirements: For a deed to be valid, it usually must be in writing, identify the grantor (seller) and grantee (buyer), contain a legal description of the property, and be signed by the grantor.
- Recording: After the deed is signed, it is typically recorded in the county’s public records to give public notice of the ownership transfer, protecting the new owner’s rights.
In summary, the deed is the official document that transfers and conveys permanent ownership interest in real property, making it the correct choice.