What term refers to an instrument that transfers interest in real property from a grantor?

The term that accurately describes an instrument that transfers interest in real property from a grantor is "conveyance." A conveyance is a legal document or action that facilitates the transfer of title or ownership of real estate from one party to another. This process can include various forms, such as deeds, which serve to formally execute this transfer.

While the other options relate to real estate in different ways, they do not specifically define the instrument used to transfer property interest. A contract for deed is an agreement where the buyer makes installment payments on the property but does not receive full title until the contract is fulfilled; this does not represent the direct transfer of interest but rather outlines payment terms for future interest transfer. Contingency refers to a condition that must be met for a real estate transaction to proceed but does not involve the transfer itself. Conversion typically refers to the process of changing the use of a property or the alteration of property rights and is not related to the transfer mechanism of property interests. Thus, conveyance is the precise term that captures the essence of transferring interest in real property.