Property Ownership
In Colorado, 'equitable title' differs from 'legal title' in that:
AA. Equitable title is the same as legal title
BB. Equitable title is the beneficial interest in property that a buyer holds under a contract before closing; legal title transfers at closing via the deed✓ Correct
CC. Legal title is held by the buyer; equitable title by the lender
DD. Equitable title cannot be transferred
Explanation
Once a buyer signs a purchase contract, they acquire 'equitable title' — the beneficial right to obtain ownership. The seller retains 'legal title' until the deed is delivered at closing.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
Title InsuranceInsurance protecting against financial loss from defects in a property's title that existed before closing but were unknown at the time of purchase.
Chain of TitleThe sequential record of all transfers of ownership for a piece of property from the original patent holder to the present owner.
Fee SimpleThe highest and most complete form of property ownership — absolute ownership with the right to use, sell, or pass the property to heirs.
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