Oregon 30-Hour Real Estate Law Practice Test

What is the primary document that outlines the terms of a lease?

1. A bill of sale

2. A purchase agreement

3. A lease agreement

4. A property appraisal

The correct answer is: A lease agreement

The primary document that outlines the terms of a lease is the lease agreement. This document establishes the legal relationship between the landlord and the tenant by detailing essential components such as the duration of the lease, rental amount, conditions for termination, and the rights and responsibilities of both parties. It serves as a formal contract that specifies the agreed-upon terms, ensuring both the landlord and tenant have a clear understanding of their obligations. In contrast, a bill of sale pertains to the transfer of ownership of personal property, not real estate. A purchase agreement is a contract that outlines the terms for buying and selling property, which is different from leasing. A property appraisal is an assessment of property value, and while it may be important in transactions, it does not define lease terms. Each of these documents serves distinct purposes in real estate transactions, but the lease agreement is specifically designed to govern the rental of property.