Equitable title refers to which aspect of ownership?

• A. Deed delivery creates equitable title
• B. Buyer's interest before deed transfer
• C. Seller's interest
• D. Equitable title means recorded ownership

Answer: (B)

Equitable title is the buyer’s interest that arises when there is a contract to purchase property, before the deed is transferred. This means the purchaser has a real, enforceable stake in the property even though the legal title remains with the seller until the deed is delivered. This interest protects the buyer during the interim—allowing possession under the contract and enabling remedies like specific performance if the seller fails to convey. Deed delivery, by contrast, transfers legal title to the buyer; it doesn’t create equitable title. The seller’s interest is not what equitable title represents, and equitable title is not the same as recorded ownership—ownership can be contested or not yet recorded, while the contract already grants the buyer an equitable interest.