medium · National Real Estate Exam contracts
A buyer has equitable title to a property under a signed purchase agreement. The buyer now wants to use this interest to secure a small loan.
Is this theoretically possible under real estate doctrine?
- Yes, but only after the seller provides notarized written consent to the proposed mortgage.
- No, because the contract remains executory and could still be cancelled by either party.
- Yes, because equitable title is a recognized interest in real property that can be encumbered.
- No, only the holder of recorded legal title may ever create a valid, enforceable lien.
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