Escrow & Title
The doctrine of equitable title holds that when a buyer signs a purchase contract, the buyer acquires:
ALegal title to the property
BAn insurable interest and equitable title, even before the deed is delivered✓ Correct
CNo interest in the property until the deed is recorded
DOnly a contractual right to sue for damages
Explanation
Under the doctrine of equitable conversion, once a purchase contract is signed, the buyer acquires equitable title (the right to acquire legal title) and an insurable interest in the property. The seller retains legal title as security until closing but holds it as a trustee for the buyer.
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