Final answer:
The correct answer is option 3) when personal property is involved in the transaction.
Step-by-step explanation:
A Bill of Sale is a legal document that transfers ownership of personal property from one party to another. It is generally used for the sale of items like vehicles, boats, furniture, or other personal property, and it serves as proof of the transaction for both seller and buyer.
The correct answer to when a Bill of Sale is used is when personal property is involved in the transaction (option 3). It is not typically used in real estate transactions which involve property such as land or buildings. For real estate, documents like a Uniform Real Estate Contract or an All Inclusive Deed of Trust would be used. As for a UCC I search, this is related to financing statements for secured transactions but does not directly involve a Bill of Sale.
In the context of a farmer selling their land to a builder, a Bill of Sale would not be the correct document; rather, a proper property title would need to be provided, and legal documents appropriate for real estate transactions, such as deeds or real estate contracts, would be used.