Contracts

The equitable title passes to the buyer in a real estate purchase contract when:

AThe deed is recorded with the county
BThe purchase agreement is signed by both parties✓ Correct
CThe buyer makes the final mortgage payment
DThe closing occurs and funds are distributed

Explanation

Equitable title (the right to acquire legal title) passes to the buyer when a binding purchase agreement is executed. Legal title passes later upon delivery and acceptance of the deed at closing.

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