How is real property typically transferred?

Real property is typically transferred by deed, which is a legal document that conveys ownership of real estate from one party to another. A deed serves as the official instrument of transfer and must meet certain requirements, such as being in writing, having a legal description of the property, and being signed by the grantor (the person transferring the property). The recording of the deed with the appropriate governmental authority also plays a crucial role in establishing the new owner's rights against claims from third parties.

Leases and bills of sale have different purposes; a lease grants temporary rights to use and occupy the property rather than transferring ownership, while a bill of sale is used to transfer ownership of personal property, not real estate. Contracts, while important in the real estate transaction process, refer to an agreement between parties and do not directly convey ownership. Therefore, the deed is the essential document that finalizes the transfer of real property.