Which of the following instruments does NOT transfer an interest in real property?
Question & Answer
Review the question and all answer choices
An option
An option is a contract that grants the optionee the right to purchase real property at a set price within a specified time period, and California courts have consistently held that an option creates an equitable interest in real property, making it an instrument that does transfer a real property interest.
A lease
A lease transfers a leasehold interest in real property to the tenant for the duration of the lease term, giving the tenant the right to exclusive possession — this is a recognized real property interest under California Civil Code, so a lease absolutely does transfer a real property interest.
A bill of sale
An agreement of sale
An agreement of sale (also called a land contract or installment sale contract) transfers equitable title to the buyer while the seller retains legal title as security, creating a recognized real property interest in the buyer — it is therefore an instrument that does transfer a real property interest.
Why is this correct?
A bill of sale transfers ownership of personal property only — items like appliances, vehicles, or business equipment — and has no legal capacity to transfer any interest in real property under California law or the Uniform Commercial Code. Because real property interests can only be transferred by instruments specifically designed for that purpose (deeds, leases, options, land contracts), a bill of sale is legally incapable of conveying such an interest regardless of what it says. This makes C the correct answer as the only instrument among the choices that does NOT transfer a real property interest.
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