Future Business Leaders of America (FBLA) Business Law Practice Exam

What provides formal evidence of ownership for a property?

1. Warranty Deed

2. Bill of Sale

3. Title Document

4. Lease Agreement

The correct answer is: Bill of Sale

The correct answer is a Title Document. This document serves as formal evidence of ownership for a property. A title document is crucial in establishing who legally owns a property and outlines any claims, easements, or liens attached to it. When a property is bought, sold, or transferred, the title is examined to ensure that the seller is the rightful owner and has the authority to sell it. A warranty deed is also related to property ownership as it guarantees that the seller holds clear title to the property and has the right to transfer it; however, it does not itself serve as the definitive proof of ownership. A bill of sale typically pertains to personal property rather than real estate and indicates proof of purchase for movable items rather than land or buildings. A lease agreement, while it grants the right to use and occupy a property, does not convey ownership and is more about the rights of the lessee than ownership itself. This distinction emphasizes why the title document is the most appropriate choice for formal evidence of ownership in the context of property.