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
Question & Answer
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a bill of sale.
an estoppel certificate.
Answer B is wrong because an estoppel certificate is a document used in commercial real estate transactions where a tenant certifies the terms of their lease to a prospective buyer or lender — it has no function in transferring ownership of personal property or chattels.
a chattel mortgage.
Answer C is wrong because a chattel mortgage is a security instrument that uses personal property as collateral for a loan (now largely replaced by the UCC security agreement under Article 9) — it creates a lien on personal property rather than transferring ownership of it.
a satisfaction piece.
Answer D is wrong because a satisfaction piece (also called a satisfaction of mortgage) is a document recorded by a lender to confirm that a mortgage has been paid in full and the lien has been released — it relates to mortgage discharge, not the transfer of personal property ownership.
Why is this correct?
Answer A is correct because a bill of sale is the legally recognized instrument for transferring ownership of personal property (chattels) from seller to buyer, and California law — consistent with the Uniform Commercial Code (UCC) Article 2 as adopted in California Commercial Code § 2101 et seq. — recognizes the bill of sale as the appropriate document when personal property changes hands alongside real property in a transaction. Without a bill of sale, the buyer has no documentary evidence of ownership for the personal property items included in the contract.
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