What is 'equitable title' versus 'legal title' in a Delaware real estate transaction?
Why Equitable title is the beneficial ownership interest a buyer receives when the purchase contract is signed — giving them the right to obtain full legal title at closing; legal title is the actual record ownership conveyed by the deed Is Correct
Answer B: Equitable title is the beneficial ownership interest a buyer receives when the purchase contract is signed — giving them the right to obtain full legal title at closing; legal title is the actual record ownership conveyed by the deed
Exam Tip: Escrow & Title
Escrow questions test the neutral third-party role and the sequence of closing events. Remember that the escrow agent acts as a dual agent for both buyer and seller and cannot advocate for either side.
Key Escrow & Title Terms in This Question
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Key Terms to Know
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.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Option ContractA contract giving the buyer the right, but not the obligation, to purchase a property at a specified price within a specified time period.
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