Oregon 30-Hour Real Estate Law Practice Test

What is the primary purpose of a property deed?

1. To provide insurance for the buyer

2. To record the sale and transfer of ownership

3. To establish zoning regulations

4. To assess property tax value

The correct answer is: To record the sale and transfer of ownership

The primary purpose of a property deed is to record the sale and transfer of ownership. A deed serves as a legal document that provides evidence of ownership and outlines the specifics of the property being conveyed, including a description of the property and the names of the parties involved in the transaction. By officially documenting the transfer, the deed ensures that there is a public record of who owns the property, which is essential for establishing legal rights and preventing disputes in the future. Other options do not contribute to the core function of a deed. For instance, providing insurance for the buyer is typically done through a title insurance policy, which protects against potential loss due to title defects. Zoning regulations are established by local governmental entities and pertain to land use rather than individual property transfers. Lastly, assessing property tax value involves appraisal processes by local tax authorities and is not the responsibility or purpose of a property deed.