Property OwnershipIntermediateAlabama Exam

Equitable title in real estate refers to:

AThe full legal ownership of property
BThe buyer's interest in property under a contract before the deed is deliveredCorrect
CTitle that has been fairly distributed among co-owners, under standard practice
DTitle with no encumbrances

Why The buyer's interest in property under a contract before the deed is delivered Is Correct

Answer B: The buyer's interest in property under a contract before the deed is delivered

Equitable title is the buyer's beneficial interest in property after a purchase contract is signed but before the deed is delivered at closing. Legal title remains with the seller until closing.

Exam Tip: Property Ownership

Property ownership questions test the bundle of rights and different forms of ownership. Know the differences between joint tenancy, tenancy in common, and community property, including the right of survivorship.

Key Property Ownership Terms in This Question

People Also Study

Practice More Alabama Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Alabama Quiz →