Escrow & Title
A Minnesota buyer receives the keys at closing. When does ownership legally transfer?
AWhen the buyer first views the property
BWhen earnest money is deposited
CWhen the deed is delivered and accepted by the buyer✓ Correct
DWhen the mortgage is funded by the lender
Explanation
Legal title to real property in Minnesota transfers when a properly executed deed is delivered to and accepted by the grantee (buyer). This typically occurs at the closing table when the seller signs and hands over the deed.
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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).
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
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.
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