What is a bill of sale primarily used for in real estate transactions?

In real estate transactions, a bill of sale primarily serves the purpose of documenting the sale of personal property that is included in the transaction. While real estate transactions focus primarily on the transfer of real property, such as land and buildings, a bill of sale is specifically used for items that are not considered real estate but may still be sold alongside it. This can include furniture, appliances, or other personal belongings that are part of the overall deal.

The significance of this is that it provides a clear record of what items are being transferred to the buyer, differentiating between the real property involved in the transaction and any personal property. A bill of sale helps to avoid disputes over ownership of these items after the transaction has been completed.

Items such as transferring real estate title, establishing loan repayment terms, and settling mortgage payments all pertain to different aspects of real estate transactions that do not relate to the sale of personal property, further clarifying the role of a bill of sale in documenting personal property sales specifically.