Posted by Mr Donald (NORVA) on October 19, 1998 at 16:28:59:
JPiper’s definition is on the mark here. The buyer’s interest, when a Contract is signed, is known as the equitable title.
Here in the Commonwealth of Virginia, for example, state law actually places the risk of damage to the property prior to settlement on the Buyer - although the standard Realtor’s contracts in use in the state change this to place the risk on the Seller, so if this clause is missing, and you’re buying, look out!
This equitable title interest is also considered to be real property; it can be assigned or transferred, and is binding on the heirs of the Seller and Buyer to complete the transaction, unless otherwise stipulated in the Contract.