Property OwnershipIntermediateDelaware Exam

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 paidCorrect

CTitle that is free of all equitable claims

DSimply the narrow title reflected only on separate equity release mortgage documents, unrelated to a land contract, in general

Why The buyer's beneficial ownership interest in property while legal title is held by the seller until the contract is paid Is Correct

Answer B: The buyer's beneficial ownership interest in property while legal title is held by the seller until the contract is paid

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.

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.