Colorado Sales License Practice Test

The transfer of ownership of real property is accomplished through a deed. A deed is a legal document that effectively conveys title from one party to another; it contains important details such as the names of the grantor (seller) and grantee (buyer), a description of the property being transferred, and the signatures of the parties involved. This document serves as the official evidence of the property's transfer, allowing the grantee to establish their ownership rights.

While a lease is used to grant temporary possession of a property without transferring ownership, and contracts outline agreements between parties (which can include terms of sale but do not transfer ownership in themselves), the deed is specifically tailored for the purpose of ownership transfer. Title insurance, on the other hand, protects against potential title defects but does not itself transfer ownership. Thus, the deed is the definitive document required for transferring ownership of real property.