California Real Estate Practice Exam

Under a real property sales contract, buyer is considered to be a(n):

1. lessee

2. equitable owner

3. tenant in common

4. vendor

The correct answer is: lessee

The appropriate designation of the buyer under a real property sales contract is "equitable owner." When a buyer enters into a sales contract for real estate, they obtain equitable title to the property. This means that while the legal title may still reside with the seller until the transaction is finalized, the buyer holds rights to the property and benefits associated with ownership, including the right to use and enjoy the property. Equitable ownership underscores the idea that the buyer has a vested interest in the property and can enforce the terms of the sales contract, which ultimately leads to them receiving full legal ownership upon completion of the sale. Thus, labeling the buyer as an "equitable owner" reflects their position and rights within the transaction accurately. The other terms are not applicable in this context: a lessee typically refers to a tenant in a rental agreement rather than a buyer; tenant in common refers to shared ownership among multiple owners rather than a buyer in a sales contract; and vendor usually denotes the seller, not the buyer.