Upon the execution of a purchase contract, the buyer's interest in the property is termed:

Upon the execution of a purchase contract, the buyer's interest in the property is termed equitable interest. This type of interest arises when a buyer has entered into a legally binding agreement to purchase real estate, even though the transaction has not yet closed, and the buyer does not yet hold legal title to the property.

Equitable interest allows the buyer to have certain rights and benefits in relation to the property, such as the right to obtain legal title once the transaction is finalized, and the right to enforce the contract. Essentially, the buyer is given an interest that recognizes their stake in the property based on the contractual agreement, reflecting their position as a party entitled to certain benefits and obligations stipulated by the contract.

This term is crucial in real estate as it distinguishes the rights of the buyer before the actual transfer of ownership occurs, ensuring that their interests are protected under the law. The distinction between equitable interest and other types of interests, such as absolute interest or full ownership, underscores the state of ownership at various stages of a real estate transaction.