In the context of a real estate sales contract, the buyer holds what is known as equitable title. Equitable title refers to the right to obtain full ownership of the property when the contract terms are fulfilled, even though the legal title has not yet been transferred. When a buyer enters into a contract to purchase property, they acquire the benefits and responsibilities associated with ownership, which gives them an interest in the property.
This equitable interest allows the buyer to receive profits, to occupy the property, and to gain protection against claims from third parties. However, until the closing occurs and legal title is formally conveyed, the buyer does not hold the legal title, which is formally documented and recorded in public records.
The other types of title mentioned do not fit this scenario in the context of a buyer in a sales contract. Legal title would imply full ownership and the right to sell the property, which the buyer does not have until the transaction is completed. The term "no title" inaccurately suggests that the buyer has no rights or interest in the property, which is not the case with an established contract. Ostensible title refers to appearances of ownership that do not equate to true ownership and does not accurately describe the buyer's position in a sales contract. Thus