What is a requirement for equitable title?

Equitable title refers to the interest or right that a buyer receives in a property once a contract for purchase has been executed, even before legal title is formally transferred. This type of title typically arises when a buyer and seller enter into a sales contract. Consequently, the requirement for equitable title is rooted in the commitment to the property established by the sales contract.

Possession of a deed and transfer of property ownership are associated with legal title, which denotes formal ownership recognized by law. A sales contract must be completed to establish equitable title, but it's the commitment to the property articulated within that contract, rather than merely its completion, that signifies the buyer's equitable interest.

Thus, the correct choice highlights the importance of that commitment, which signifies the intention and agreement between the parties involved, ultimately leading to the transfer of equitable rather than legal title.