Windows 11 product key transfer and fresh reinstall question

I have no plans to use W11 I just want to have the copy. I have a second hand laptop with a 1TB nvme drive, two m.2 slots and a spare 256GB nvme. I have what looks to be a fresh install with a local account. Is the product key all that is requited to make the transfer and reinstall work with a new drive?

How does this work if the product key was used before with an actual Microsoft account and then the machine is sold with a wiped system and local account? I haven't used old softy since W8 and not much even then.