What term describes the ownership interest of a buyer during the period between signing a sale contract and closing?

The ownership interest of a buyer during the period between signing a sale contract and closing is referred to as equitable title. This term indicates that while the buyer does not yet have legal title—meaning they do not yet have formal ownership recognized by law—they do possess certain rights to the property and a beneficial interest in it.

Equitable title arises as soon as a buyer and seller agree to the terms of a sale, typically marked by the execution of a purchase contract. The buyer has the right to occupy the property, may have some control over it, and stands to gain ownership when the sale is formally completed at closing. This concept safeguards the buyer's interest in the property and ensures that the seller cannot sell it to someone else during this interim period.

In contrast, legal title would represent full ownership with the ability to sell and govern the property, which the buyer does not yet have at this stage. Marketable title refers to a title that is free of liens or defects, and beneficial title is not a standard term used in real estate discussions regarding ownership interests during a sale contract. Hence, equitable title is the accurate term to describe the buyer's interest during this specific timeframe.