What is the term for the buyer's interest when purchasing a property with a Uniform Real Estate Contract?

The term that describes the buyer's interest when purchasing a property using a Uniform Real Estate Contract is known as equitable interest. Equitable interest exists when a buyer has entered into a contract to purchase real estate but does not yet hold the legal title to the property. This contract grants the buyer certain rights to the property, such as the right to possess it, use it, and take actions to ensure its preservation until the transaction is completed.

In the context of a Uniform Real Estate Contract, the buyer may have equitable interest during the time between signing the contract and the actual conveyance of the deed. This interest implies that the buyer has a financial stake in the property and benefits from any appreciation in its value, even before formal ownership is transferred through the deed.

Understanding equitable interest is critical for both buyers and sellers in real estate transactions, as it clarifies the rights and responsibilities each party holds during the purchase process.