When is equitable title transferred to the purchaser in a real property sales contract?

Equitable title is the interest in property that gives the purchaser a right to obtain full ownership once the conditions of the contract are met. In a real property sales contract, equitable title is generally transferred to the purchaser upon signing of the contract. This means that once both parties have agreed to the terms and executed the contract, the buyer gains an equitable interest in the property, which includes rights to potential profits and benefits from the property, subject to the terms of the agreement.

This transfer of equitable title does not depend on further steps like full payment, recording the deed, or taking possession. It acknowledges the buyer’s rights to the property even before closing, thereby promoting the buyer's interest and investment during the interim period until full legal title is transferred.

The notion that equitable title is dependent on the timing of other events, like payment or possession, misrepresents how equitable title functions in real estate contracts. Equitable rights are established with the execution of the contract itself, illustrating the importance of the contract as a legally binding document.