Escrow & Title
In North Dakota, 'equitable title' is typically acquired by the buyer when:
AThe deed is recorded
BA purchase agreement is fully executed (signed by both parties)✓ Correct
CThe closing occurs
DThe mortgage is paid off
Explanation
When a purchase agreement is fully executed (signed by both buyer and seller), the buyer obtains equitable title — the right to acquire legal title. Legal title (and possession) transfers to the buyer at closing when the deed is delivered and recorded.
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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).
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
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.
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