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Assume the contract for the sale of real prop- erty includes the sale of certain removable items, such as paintings and furniture. Upon delivery of the deed, the seller also should deliver

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Question & Answer

Review the question and all answer choices

A

a bill of sale.

Correct Answer
B

an estoppel certificate.

An estoppel certificate is used to verify loan information or lease terms, not to transfer personal property. It's typically requested by lenders or buyers to confirm existing obligations, not as part of personal property conveyance.

C

a chattel mortgage.

A chattel mortgage is a security interest in personal property used as collateral for a loan, not a document for transferring ownership. It's used when financing personal property, not during a real estate sale.

D

a satisfaction piece.

A satisfaction piece (or satisfaction of mortgage) is a document that releases a property from a mortgage lien after the loan is paid off. It's unrelated to transferring personal property in a real estate transaction.

Why is this correct?

A bill of sale is the correct document because it specifically transfers ownership of personal property (chattels). When real estate transactions include personal property items, a separate bill of sale is required to document their transfer, complementing the deed which transfers real property.

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