What is the definition of equitable title?
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 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.
What is legal and equitable?
There are two types of claims: legal and equitable. While plaintiffs pursuing a legal claim ask a court to award money, litigants bringing an equitable claim ask a court to either prompt or stop a particular action or event.
What is the meaning of legal title?
Legal Title: Title that can be documented and is available through public records. Such title grants rights to the owner to exercise various types of rights on the property such as easement rights, development rights, possession rights, selling rights, exclusive use, etc.
Can you sell an equitable title?
In general, equitable title gives a person the right to use the land and enjoy the benefits that come along with its ownership. Legal title does not necessarily grant these rights. Equitable title does not allow the titleholder to sell or transfer ownership. Legal title is the only title that can do this.
How can you tell whether a right in land is legal or equitable?
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 legal title of a property?
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 do you mean legal and equitable ownership?
Ownership recognized by the Courts of common law is called legal ownership, whereas ownership recognized by courts of equity is called equitable ownership. One person may be the legal and another, the equitable owner of the same thing or right at the same time.
What is the difference between a legal and equitable remedy?
While legal remedies typically involve monetary damages, equitable relief typically refers to injunctions, specific performance, or vacatur. A court will typically award equitable remedies when a legal remedy is insufficient or inadequate.
What are the types of titles?
The Different Types of Vehicle TitlesClean title. ... Clear title. ... Salvage title. ... Bonded title. ... Rebuilt or reconstructed title. ... Lemon title. ... Junk or dismantled title. ... Odometer rollback title.More items...
When the borrower retains both equitable and legal title to the property?
In lien theory states, the mortgagor actually gives legal title to the mortgagee (or some other designated individual) and retains equitable title. In title theory states, the mortgagor retains equitable title.
What does equitable ownership mean?
An equitable ownership interest is a form of ownership or right of use that exists without legal title to the property. For example, a person regarded as the real owner because of his investment in the property, but the legal title is in someone else's name has an equitable ownership interest in the property.
Which of the following parties receives equitable title?
Which of the following parties receives equitable title? The Vendee. A land contract is: a financing arrangement where the purchaser pays regular installments of principal and interest to the seller while the seller retains title.
What is meant by equitable ownership?
An equitable ownership interest is a form of ownership or right of use that exists without legal title to the property. For example, a person regarded as the real owner because of his investment in the property, but the legal title is in someone else's name has an equitable ownership interest in the property.
What is the legal title of a property?
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 do you mean legal and equitable ownership?
Ownership recognized by the Courts of common law is called legal ownership, whereas ownership recognized by courts of equity is called equitable ownership. One person may be the legal and another, the equitable owner of the same thing or right at the same time.