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- While legal title signifies actual ownership and the right to sell or transfer the property, equitable title implies a right to obtain full ownership in the future or to benefit from the property.
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Apr 8, 2019 · Equitable title establishes the person’s financial interest in the property. A property investor, for example, may hold equitable title but not legal title. Equitable titleholders will benefit from the property’s appreciation in value.
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In real estate law, \"equitable title\" refers to a persons right to obtain full ownership of a property or property interest. This is often contrasted with or used in conjunction with the term \"legal title.\" Legal title is the actual ownership of the land. A person with legal title to land has the right to transfer ownership of the property to a...
In comparison, equitable title often relates to a persons financial interest in the property. Thus, a person can have equitable title to a property that they have invested in, while another party holds legal title. In order to understand this interaction more, it may be necessary to examine some examples involving equitable and legal title.
A common example of how legal and equitable title work is in a trustee situation. Let's suppose that a property owner wants to transfer property to beneficiaries through a trust. They may transfer legal title to a trustee, who will hold the property until a specified time indicated by the property owner (such as after 5 years, etc.). Another exampl...
Lastly, equitable title may be relevant in a regular real estate sale. The buyer may obtain equitable title when the contract is completed. However, they wont obtain legal title until closing is completed and the deed is actually delivered to them.
Title disputes can often be difficult to resolve. Ones rights in an equitable title versus a legal title can be different. For instance, a person with equitable title generally has no rights to sell the property or transfer ownership in it. Disputes may often require legal action in order to resolve them. These may require a damages award or other ...
In this real estate exam prep video, we will discuss the concept of Equitable Interest, Assignment of contract, and Strawman.
- 7 min
- 12.4K
- The Real Estate Classroom
Jan 27, 2011 · This is essentially true unless someone else has what is known as an “equitable interest” in the property. An equitable interest can take the form of a purchase and sale contract, an option contract, a contract for deed, a lease option contract or an approval letter for a short sale, to name a few.
Feb 13, 2021 · Equitable Title. A quiet title action seeks court assistance to establish the plaintiff’s ownership of a property in opposition to a defendant’s claim. This is a dispute over who holds the “title” to the land.
Feb 10, 2024 · 1. What is equitable interest? According to Lawpath, equitable interest “arises when there is an interest in the property, but no legal title exists.” It’s a broad term that covers an interest established through principles of fairness, rather than the true legal assignment of ownership.
Mar 3, 2015 · The equitable ownership doctrine is a common law concept that can convert lessees of real property into owners that are liable for property taxes.
