When an offer to purchase is agreed to and signed by all parties but not closed, the purchaser has

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Study for the Washington Real Estate Fundamentals Rockwell Exam. Utilize flashcards, multiple choice questions with hints and explanations. Prepare thoroughly for your real estate career!

Multiple Choice

When an offer to purchase is agreed to and signed by all parties but not closed, the purchaser has

Explanation:
Signing a purchase agreement creates an equitable interest in the buyer. The contract binds the seller to convey title and the buyer to pay, but the actual transfer of legal title (the deed) happens only at closing. Until then, the buyer holds equitable title—a right to obtain ownership under the contract terms. This status is different from owning the property outright (freehold estate), from occupying as a tenant, or from having a lien against the property. The buyer’s protection comes through equity, and the buyer can seek specific performance if the seller breaches.

Signing a purchase agreement creates an equitable interest in the buyer. The contract binds the seller to convey title and the buyer to pay, but the actual transfer of legal title (the deed) happens only at closing. Until then, the buyer holds equitable title—a right to obtain ownership under the contract terms. This status is different from owning the property outright (freehold estate), from occupying as a tenant, or from having a lien against the property. The buyer’s protection comes through equity, and the buyer can seek specific performance if the seller breaches.

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