During the executory period of a sale contract, what interest does the buyer have?

During the executory period of a sale contract, the buyer holds equitable title. This means that while the buyer does not yet have legal title to the property—since the legal transfer of ownership occurs only upon completion of the contract—the buyer has the right to obtain ownership in the future, provided that they meet the terms of the contract.

Equitable title grants the buyer certain rights, including the ability to benefit from the property, such as using it or even receiving profits from it, depending on the agreement. The seller still retains legal title during this executory period, but the buyer's equitable interest signifies their financial investment and future ownership rights. The concept of equitable title is foundational in real estate transactions, as it underscores the obligations and rights of both parties while the sale is pending.

In contrast, legal title is not transferred until all contractual obligations are fulfilled, and executory title is not a recognized term in real estate law. Equity of redemption typically refers to a borrower’s right to reclaim property before foreclosure, which is not applicable in this context. Therefore, the concept of equitable title directly aligns with the rights and interests of a buyer during the executory period of a sale contract.