What occurs when B dies if B has equitable title?

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Study for the Real Estate Transactions Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare to excel in your exam!

When B dies while holding equitable title, the equitable interest in the property transfers to B's heir. This happens because equitable title represents a beneficial interest in the property that can be inherited. In simpler terms, equitable title allows a person to benefit from the property, even though another party holds the legal title.

When B passes away, the interest that B held does not simply vanish or become nullified. Instead, B's heir is entitled to receive the same equitable title that B possessed. This ensures that the heir can continue to benefit from the property or pursue legal claims regarding it, in alignment with the rules of inheritance regarding equitable interests.

In contrast, options that suggest the heir receives nothing or that the estate is left in limbo do not accurately reflect how equitable titles operate upon death. The transfer of interests and rights upon death is a crucial aspect of property law, ensuring that heirs are recognized and can exercise their rights.

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