In a property transaction, completion results in the buyer becoming equitable owner when what occurs?

• A. Deeds handed over and the buyer receives the keys
• B. At exchange
• C. On registration
• D. When the contract is formed

Answer: (B)

The buyer becomes the equitable owner at the moment the contract is exchanged. Once the contract is binding through exchange, equity recognizes the buyer as the owner to be, giving them a beneficial interest in the land. The vendor still holds the legal title until completion, and only after completion (and subsequent registration) does the buyer obtain the legal ownership. Handover of deeds or keys is about completing the transfer and possession, not the creation of the equitable interest. The contract being formed is earlier than exchange, so it does not itself create the buyer’s equitable ownership.