Escrow & Title
In Illinois, the term 'equitable title' describes the interest held by:
AThe recorded owner of the property
BThe buyer under an executory purchase contract (before closing and deed delivery)✓ Correct
CA lender who holds a mortgage on the property
DA tenant under a long-term ground lease
Explanation
Under the doctrine of equitable conversion, once a purchase contract is signed, the buyer acquires equitable title — the beneficial right to receive ownership. The seller retains legal title as security until closing, at which point the deed delivers legal title to the buyer. Equitable title gives the buyer an insurable interest.
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