PSI Oklahoma Real Estate Practice Test

To properly transfer title of real property, which document is primarily used?

1. Bill of Sale

2. Quitclaim Deed

3. Warranty Deed

4. Lease Agreement

The correct answer is: Warranty Deed

The primary document used to properly transfer title of real property is a warranty deed. A warranty deed guarantees that the seller has clear title to the property and the right to sell it. This type of deed also provides assurance to the buyer that they will not face any future claims against the title from previous owners or liens that were not disclosed. In a warranty deed, the seller makes certain warranties or covenants regarding the title, including that they have the legal capacity to convey the property and that the title is free from defects. This level of assurance is important for buyers, as it protects them from possible legal disputes over property ownership. While the other choices represent different legal instruments, they do not primarily serve the purpose of transferring title to real property. A bill of sale is used for personal property transactions, a quitclaim deed transfers whatever interest the grantor has in the property without any warranty of clear title, and a lease agreement is a contract for the rental of the property rather than a transfer of ownership.