Hawaii Pre-Licensing National Practice Exam

What document is typically prepared for the sale of a seller's riding lawn mower during a real estate transaction?

1. Sales contract

2. Bill of sale

3. Warranty deed

4. Property transfer form

The correct answer is: Bill of sale

In a real estate transaction, a bill of sale is the appropriate document used to transfer ownership of personal property, such as a seller's riding lawn mower. This document serves as a legal record that indicates the seller is transferring the item to the buyer, detailing the item being sold and the agreed-upon price. While a sales contract generally covers the sale of real property and includes the terms of that sale, it does not specifically address personal property unless explicitly stated. A warranty deed, on the other hand, pertains to real estate transactions and serves the purpose of conveying ownership of real property alone, not personal property like lawn mowers. Similarly, a property transfer form is used for real estate transactions and does not include personal property items. Therefore, a bill of sale is the most suitable document for this specific context, as it directly addresses the sale of personal property within a real estate transaction.