Final answer:
The purchaser holds an equitable interest or an equitable title after an agreement of sale is signed, and not full legal title. This means they have the right to obtain full legal title after completing certain conditions, such as full payment. Accurate property title and acreage calculation are essential for the sale.
Step-by-step explanation:
After an agreement of sale is signed, the purchaser does not hold the title to the property; instead, they hold an equitable interest or an equitable title. This means that while they do not have the full rights of ownership, they have a right to acquire full legal title after certain conditions are met, such as paying the purchase price in full. The legal title will remain with the seller until the completion of the sale - typically, this completion is marked by the delivery of the deed to the purchaser at closing.
In the context provided, if the owner cannot deliver possession of the residence on the agreed date, the agreement of sale can be terminated, with neither party having liability to the other and any sums paid refunded. Before the sale, it's essential to have an accurate property title, which requires determining the property's dimensions and calculating the acreage. This forms the basis for transferring the actual title to the purchaser upon fulfillment of the sale terms.