Which of the following indicates a legal transfer of ownership?

A legal transfer of ownership requires certain formalities to ensure that the transaction is valid and enforceable under the law. A written contract is the preferred method because it provides clear documentation of the agreement between the parties, outlining the terms and conditions of the transfer. This serves to protect the interests of both parties and serves as evidence should disputes arise in the future.

While a handshake agreement may signify an intention to transfer ownership, it lacks the legal enforceability that comes with a written document. Additionally, a bill of sale is indeed a legal document used specifically to transfer ownership of personal property; however, it is not applicable for all types of ownership transfers, particularly in real estate transactions, where a more comprehensive written contract is usually required.

Therefore, a written contract is fundamentally crucial as it encapsulates the necessary legal protections and clarity for transferring ownership, making it the correct answer in this scenario.