Equitable title is the interest held by which party?

• A. The vendor until closing
• B. The vendee who has contracted to purchase but not closed
• C. The lender until payment
• D. The new owner after closing

Answer: (C)

Equitable title refers to the buyer’s right to obtain ownership of the property based on a contract to purchase, before the deed is actually delivered at closing. In a real estate sale, the seller retains legal title until closing, while the buyer gains an equitable interest in the property from that contract. This equitable interest gives the buyer the right to obtain the property and to enforce conveyance once conditions are met.

The reason this is the best fit is that the seller’s legal title remains in place during the contract period, and the lender’s role is as a secured creditor with a lien on the property, not an ownership interest. After closing, the buyer receives legal title, so the concept of equitable title is no longer the ongoing interest. Therefore, the party with equitable title while the sale is pending is the vendee who has contracted to purchase but has not yet closed.