Property OwnershipIntermediateDelaware Exam

In Delaware, which party in a land contract (contract for deed) holds legal title during the contract term?

AThe buyer (vendee) holds legal title immediately
BThe seller (vendor) holds legal title until the buyer completes paymentsCorrect
CA trustee holds legal title on behalf of both parties
DThe county recorder holds legal title until the deed is recorded

Why The seller (vendor) holds legal title until the buyer completes payments Is Correct

Answer B: The seller (vendor) holds legal title until the buyer completes payments

In a land contract (installment sale contract), the seller retains legal title until the buyer completes all required payments. The buyer holds equitable title and possession but does not receive the deed until the final payment.

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

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