Property Ownership

What is 'equitable title' in a Delaware land contract?

AThe title conveyed by a general warranty deed
BThe buyer's beneficial ownership interest in property while legal title is held by the seller until the contract is paid✓ Correct
CTitle that is free of all equitable claims
DThe title reflected on equity release mortgage documents

Explanation

In a land contract (installment sales contract), the buyer holds equitable title — the right to possess and enjoy the property — while the seller retains legal title until the full purchase price is paid, at which point legal title transfers via deed.

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