Escrow & Title
In Massachusetts, when does a buyer generally obtain equitable title to property?
AWhen the deed is recorded at the Registry of Deeds
BWhen the Purchase and Sale Agreement is signed and accepted✓ Correct
CWhen the home inspection is completed
DWhen the mortgage application is submitted
Explanation
Equitable title (the right to demand legal title upon performance) passes to the buyer when the Purchase and Sale Agreement is signed. Legal title (via deed) passes at closing.
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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.
Abstract of TitleA condensed history of a property's title, summarizing all recorded documents and encumbrances affecting it from the earliest record to the present.
Closing CostsFees and expenses paid by the buyer and/or seller at the closing of a real estate transaction, in addition to the property's purchase price.
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