Escrow & Title
What is 'equitable title' versus 'legal title' in a Delaware real estate transaction?
ABoth terms refer to the same ownership interest in Delaware
BEquitable 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✓ Correct
CEquitable title is held by the lender; legal title is held by the buyer
DLegal title is temporary; equitable title is permanent
Explanation
When a buyer signs a valid purchase contract, they acquire equitable title — a beneficial ownership interest and the right to demand the deed upon fulfillment of contract conditions. The seller retains legal title (record ownership) until the deed is delivered at closing.
People Also Study
Related Delaware Questions
- In Delaware, which party in a land contract (contract for deed) holds legal title during the contract term?Property Ownership
- In a Delaware closing, who typically selects the title insurance company?Escrow & Title
- What is 'equitable title' in a Delaware land contract?Property Ownership
- What is 'title insurance' for a lender versus 'title insurance' for an owner in Delaware?Escrow & Title
- What is 'earnest money' versus 'option fee' in a Delaware purchase contract?Contracts
- Which of the following is a required element for a valid real estate contract in Delaware?Contracts
- Adverse possession in Delaware allows a person to acquire title to another's property if they occupy it:Property Ownership
- A special warranty deed in Delaware warrants title only against defects arising:Escrow & Title
Key Terms to Know
Deed
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.
Math Concepts
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →