medium · National Real Estate Exam
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 if the seller provides written consent to the mortgage.
- No, because the contract is still executory and could be cancelled.
- Yes, because equitable title is a recognized interest in real property that can be encumbered.
- No, because only the holder of legal title can create a valid lien.
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