Question 24

A bill of sale is used at a closing to convey title of personal property.

A bill of sale serves as a legal document that transfers ownership of personal property from one party to another, establishing clear evidence of the transaction during the closing process.

A) show the receipts and disbursements as they affect both seller and borrower.

This option is incorrect because a bill of sale does not primarily function to display receipts and disbursements. Instead, it is specifically designed to document the transfer of ownership of personal property, rather than detailing financial transactions between the parties involved.

B) charge the purchaser for all closing costs.

This option is also incorrect. A bill of sale does not serve to charge the purchaser for closing costs; rather, it is a document that confirms the transfer of ownership. Closing costs are typically detailed in a separate document, such as a closing statement.

C) convey title of personal property.

This option is correct as a bill of sale is indeed used to convey the title of personal property. It legally documents the transfer of ownership, ensuring that the buyer has rights to the property being sold.

D) collect the brokers real estate commission.

This option is incorrect because a bill of sale does not pertain to the collection of a broker's commission. Broker commissions are usually outlined in a listing agreement or separate contractual agreement, not in a bill of sale.

Conclusion

The correct answer is C because a bill of sale is fundamentally designed to convey ownership of personal property, making it an essential legal document in the closing process. All other options fail to accurately represent the primary function of a bill of sale, which is to document the transfer of title rather than financial transactions or commissions.