What does equitable title mean?
A beneficial interest in real property that gives the title holder the right to acquire legal title to the property. Equitable title holders cannot transfer legal title to real property, but they derive benefits from the property’s appreciation in value.
What does equitable ownership mean?
Equitable ownership, in the context of corporate/commercial law, is a doctrine under which an individual who exercises sufficient control over the corporation may be deemed an equitable owner, notwithstanding the fact that the individual is not a shareholder of the corporation.
What is equitable title example?
The concept of equitable title may also apply in investments, especially in real property. For instance, a property investor may invest in land by constructing buildings, improvements, or by planting crops on the land by virtue of an agreement with the owner or legal title holder.
When the borrower retains both equitable and legal title to the property?
In one state, a mortgagee holds a lien on real property offered as collateral for a loan. The mortgagor retains both legal and equitable title to real property. If the borrower defaults on the loan, the lender must go through formal foreclosure proceedings to recover the debt.
What is the difference between legal and equitable rights?
The difference between legal and equitable rights is that legal rights are always enforceable against the land’s new owners. However, equitable rights are always more flexible and less rigid than legal rights.
What does legal title mean?
Related Content. Absolute ownership of real property that is enforceable in a court of law. Legal title to real property is evidenced by a deed that is recorded in the public records in the county where the property is located.
What is the difference between a legal and equitable owner?
What is the difference between legal and equitable property rights?
The status of an interest in land as either legal or equitable traditionally determined the rules of enforcement of that interest against third parties: legal interests bound all third parties, whereas equitable interests would only bind third parties who were not bona fide purchasers for value of a legal estate …
What is the most important difference between legal and equitable interests?
Ownership of property can be divided into the following: a legal interest and an equitable interest. A legal interest is enforceable against the whole world while an equitable interest is enforceable against the whole world except for the bona fide purchaser for value without notice.
What is the difference between a legal and equitable interest?
What rights does an equitable owner have?
What is difference between legal and equitable?