Before you read
Test yourself first: 5 questions
Question 1 of 5
Once a buyer and seller sign the purchase contract, the buyer holds:
Answer: A. Signing gives the buyer equitable title; legal title transfers by deed at closing.
Question 2 of 5
In a contract for deed (land contract), title:
Answer: A. In a land contract the seller retains legal title and the buyer takes possession/equitable title, receiving the deed only after paying the agreed amount.
Question 3 of 5
The legal remedy known as specific performance compels a party to:
Answer: B. Specific performance is an equitable remedy ordering the breaching party to carry out the contract, often available because real estate is considered unique.
Question 4 of 5
After signing a purchase contract, the buyer dies before closing. Generally, the contract is:
Answer: B. Purchase contracts generally BIND THE ESTATE — death doesn't discharge them (unlike agency, which is personal and dies with the party). The estate can be compelled to perform or negotiate a release.
Question 5 of 5
Which situation results in an UNENFORCEABLE (rather than void or voidable) contract?
Answer: B. An oral land-sale agreement violates the statute of frauds: possibly valid between honest parties, but a court won't enforce it. Illegal purpose = VOID; minor or duress = VOIDABLE.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Equitable title is why the buyer can insure the property, why specific performance is available (land is unique), and why the buyer's interest survives the seller's death. Risk of loss between contract and closing follows state law or the contract: many contracts keep risk on the SELLER until closing. The doctrine of equitable conversion treats the buyer's interest as real property and the seller's as personal (the right to money).
Equitable Title & Risk Between Contract and Closing: FAQs
Is Equitable Title & Risk Between Contract and Closing on the real estate exam?
Yes. Contracts & Transfer of Title is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
