Florida Broker Practice Exam

How is ownership conveyed in a condominium?

1. Through oral agreement

2. By lease agreement

3. By a deed

4. By a promissory note

The correct answer is: By a deed

Ownership in a condominium is conveyed by a deed. This method is the standard legal process for transferring real property interests, including those in condominium units. When a condominium unit is sold, the seller executes a deed that specifies the details of the transaction, such as the names of the parties involved and the specific unit being transferred. The deed is then recorded in the local county's property records, which provides public notice of the ownership transfer. The use of a deed is essential because it serves as the official documentation that establishes and confirms ownership. It outlines both the legal description of the property and any associated rights and obligations, making it a critical component of property law and real estate transactions. In contrast, options like oral agreements or lease agreements do not legally transfer ownership but rather establish various types of rights or temporary occupancy. A promissory note is a financial instrument that outlines a loan agreement, but it does not convey property ownership either.