PSI Virginia Real Estate Practice Exam

What is the primary purpose of a deed?

1. To establish property management guidelines

2. To transfer ownership of a property

3. To provide a market analysis

4. To regulate property taxes

The correct answer is: To transfer ownership of a property

The primary purpose of a deed is to transfer ownership of a property. A deed is a legal document that conveys title from one party to another and serves as formal evidence of this transfer. It includes essential details such as the names of the grantor (seller) and grantee (buyer), a description of the property, and is typically signed by the grantor. The recording of the deed in public records is crucial as it helps establish the new owner's legal claim to the property and protects their interests. Other options are not aligned with the primary function of a deed. For instance, property management guidelines pertain to the administration and operation of real estate rather than ownership transfer. A market analysis is concerned with evaluating the value of a property based on various factors, which is distinct from the action of transferring ownership itself. Lastly, regulations regarding property taxes involve taxation law rather than the legal transfer of property, which is the deed's direct purpose.