Equitable title is referred to a buyer that has contracted a property for sale but has not yet closed on the home. They’re said to have equitable title. When a buyer has equitable title, they have legal interest in the property because they have it contracted for sale. However, equitable title is not legal title. Legal title only comes when a property has been conveyed or sold. Once a property closes and title is conveyed to the buyer, they are said to have legal title. Equitable title occurs anytime a property is contracted for sale. Equitable title also occurs when a buyers contracts a home as a seller carryback under an agreement for sale. This type of equitable title is also referred to as a land contract. A land contract is where the owner holds title until the buyer pays the seller the complete purchase price of the home.