ContractsIntermediateDelaware Exam

In a Delaware real estate transaction, the doctrine of equitable conversion means that:

AThe seller retains legal title until all contingencies are removed
BThe buyer's equitable interest in the property begins when the purchase contract is signedCorrect
CThe title company converts the deed to electronic format
DThe seller can convert the listing to a shorter-term agreement

Why The buyer's equitable interest in the property begins when the purchase contract is signed Is Correct

Answer B: The buyer's equitable interest in the property begins when the purchase contract is signed

Equitable conversion holds that once a real estate contract is signed, the buyer acquires an equitable interest in the property, even though the seller retains legal title until closing. This can affect who bears the risk of loss if the property is damaged before closing.

Exam Tip: Contracts

Contract questions frequently test the essential elements required for a valid contract. Remember: competent parties, mutual consent, lawful object, and sufficient consideration. Watch for void vs. voidable distinctions.

Key Contracts Terms in This Question

People Also Study

Practice More Delaware Real Estate Questions

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

Take the Free Delaware Quiz →