When does a buyer obtain beneficial interest in the subject property?

A buyer obtains beneficial interest in the subject property upon execution of the Contract of Purchase and Sale and the removal of subjects. This means that the buyer has a vested interest in the property as soon as the contract is signed and the contingencies or conditions (subjects) that were placed on the agreement are met or waived.

Beneficial interest refers to the right to enjoy the benefits of ownership of the property, even if formal title has not yet been transferred. Once the contract is executed and the subjects are satisfied, the buyer can begin to exercise control over the property, which is a key aspect of real estate transactions.

In contrast, registering the title is a legal process that formalizes ownership, but it happens after the buyer has already achieved beneficial interest. Similarly, paying in full is part of the financial aspects of the transaction but does not inherently grant beneficial interest. Lastly, while the seller's signature is important for the formation of the contract, it is the execution and fulfillment of terms, particularly the subjects, that truly transfer beneficial interest to the buyer.