Final answer:
The interest of the buyer when purchasing a property using a uniform real estate contract is known as an equitable title. This grants the buyer certain rights before obtaining full legal title upon completion of the sale, while the seller retains the legal title until the transfer is finalized.
Step-by-step explanation:
When a buyer purchases a property using a uniform real estate contract, the interest of the buyer is called an equitable title. This term refers to the buyer’s interest in the property during the period between the signing of the contract and the completion of the sale (closing), where they have a right to obtain full legal title upon fulfilling all terms and conditions of the contract. An equitable title grants the buyer certain rights to the property, such as the ability to sell or assign their interest or to modify the property, subject to the terms of the contract.
It is important to note that while the equitable title represents a significant interest in the property, it is not the same as full legal ownership which is transferred only upon the closing of the sale and is represented by a deed. Until that time, the seller holds what is called the legal title, which comprises the ultimate control and discretion over the property, subject to the contract conditions until the transfer is complete.