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Master Exam #3

Question 150 of 150
Question: Both buyer and seller have signed a real property conditional sales contract, the effect of which would be:
A:  All right and interest of the seller now passes to the buyer;
B:  An equitable title passes to the buyer;
C:  The legal title passes to the buyer;
D:  No title to the real estate passes.

Correct Answer is : B

When a buyer and seller have signed a conditional sales contract (land contract), the buyer receives equitable title to the property, and the seller retains the legal title until such time as the contractual obligations have been fulfilled by all parties.