What type of interest does a buyer hold upon executing a contract to purchase real estate?

When a buyer executes a contract to purchase real estate, they hold an equitable interest in the property. This means that while the buyer does not yet have legal title to the property—because the sale has not been finalized—they have a right to obtain ownership and enjoy certain benefits that stem from their contractual agreement.

Equitable interest arises from the buyer's contractual rights, which include the ability to enforce the contract and the right to seek legal remedies if the seller fails to fulfill their obligations. This concept underscores the principle that equity often protects expectations and interests that do not yet have formal legal recognition.

The other types of interests listed do not accurately reflect the rights held by the buyer at this stage. For instance, legal interest would only be established once the transaction is completed and the title is transferred. Partial and conditional interests are less relevant in the context of a standard purchase agreement, as they refer to different scenarios of ownership or contractual obligations. The key takeaway is that the buyer’s rights to the property before closing are recognized as equitable interests, which serve to protect their investment and expectations until full ownership is legally transferred.