Affiliate Broker Tennessee (TN PSI) National Practice Exam `

What is typically included in an act of conveyance in real estate transactions?

1. The legal description of the property

2. The price paid for the property

3. The buyer's personal information

4. Home inspection results

The correct answer is: The legal description of the property

An act of conveyance in real estate transactions typically includes the legal description of the property. The legal description provides precise and unambiguous details about the property being transferred, ensuring that both parties have a clear understanding of the specific parcel of land involved. This description is crucial for legal purposes, as it distinguishes the property from others in the vicinity and helps avoid any disputes regarding boundaries or ownership. While details such as the price paid for the property and the buyer's personal information may be relevant in the broader context of the transaction, they are not considered part of the conveyance document itself. Similarly, home inspection results, although important for the buyer's consideration, are not included in the act of conveyance. The focus of the act is firmly on the transfer of ownership rights, which is achieved through the inclusion of the legal description.