What does a buyer acquire after a sales contract is signed?

When a buyer signs a sales contract, they acquire equitable title in the property. Equitable title refers to the buyer's right to obtain formal legal title once the purchase is finalized and any conditions outlined in the contract are met. This type of title gives the buyer a financial interest in the property and the right to benefit from it, even though they may not yet hold legal title.

Legal title, on the other hand, is transferred only at the closing of the sale when all contractual obligations are fulfilled, and the deed is officially recorded. Until that moment, the seller retains legal title despite the buyer's equitable interest. Therefore, it is the concept of equitable title that comes into play once a sales contract is executed, as the buyer stands to gain ownership of the property after the completion of the sale.