What is TRUE about the executory stage of a contract to purchase real property?

In the executory stage of a contract to purchase real property, the seller retains legal title to the property while the buyer holds equitable title. This means that although the seller is the official owner of the property on public records, the buyer has the right to obtain ownership of it once the terms of the contract are fulfilled, typically at the closing. The concept of equitable title reflects that the buyer has an interest in the property and a right to obtain legal title in the future.

This stage is critical because it encompasses the period between the acceptance of the purchase contract and the closing. During this time, various contingencies specified in the contract may be satisfied before the transaction is finalized. It means that while the buyer may not have immediate rights to occupy or control the property fully, they do have a legal claim that arises from their position as the equitable owner.