What are the two basic steps to convey real estate?

The correct answer highlights the fundamental aspects of real estate transactions, which involve the transfer of ownership from one party to another. The two basic steps are the exchange of equitable title and the subsequent transfer of legal title.

When a buyer and seller agree to the terms of a sale, the buyer typically receives equitable title at the moment the sales contract is signed. Equitable title allows the buyer to possess and sometimes take actions related to the property, such as constructing improvements, while the legal title remains with the seller for the time being. This represents the buyer's rights to the benefits of ownership, even before the full transfer of legal title occurs.

The second part of this process, transferring legal title, occurs at closing when the requisite legal documents, like the deed, are executed and delivered. At this point, the seller formally transfers their legal interest in the property to the buyer, completing the transaction. This two-step process effectively outlines how ownership in real property can be conveyed and ensures both parties fulfill their respective obligations in the transaction.

Other options present alternative steps or concepts that do not encapsulate the fundamental act of conveyance in real estate. For instance, procuring title insurance followed by a warranty deed relates to protecting the interests of the parties but does not directly