What document can be relied upon as a factual representation of title?

The correct answer is a document that serves as a factual representation of title, detailing the history of ownership and any claims against the property. An abstract of title is a comprehensive summary that provides a chronological record of all legal documents affecting the title to a specific piece of real estate. It includes information on previous owners, liens, mortgages, and any encumbrances, providing prospective buyers or lenders a clear picture of the property's legal status.

The purchase agreement, while it sets out the terms of buying and selling the property, does not inherently provide historical information about the title. The contract for deed is a financing agreement, which lays out the terms for purchasing the property, yet it does not serve to verify the title status. A bill of sale is typically used for transferring personal property rather than real estate and therefore does not apply as a factual representation of title in real estate transactions. The abstract of title is designed specifically to deliver essential information regarding the legal standing of a property, making it the correct choice in this context.