What is equitable property?

What is equitable property?

Equitable interests arise where there is an interest in a property, albeit the party with the interest does not have legal title. Legal title is the true and enforceable ownership of a property. This cannot easily be overridden, save for when an equitable interest exists.

What is equitable ownership of property?

In real estate law, “equitable title” refers to a person’s right to obtain full ownership of a property or property interest. A person with legal title to land has the right to transfer ownership of the property to another party.

What’s the difference between legal and equitable title?

While a legal title focuses on the duties of the property owner, equitable title refers to the enjoyment of the property. Equitable title is the benefits the buyer will get to use and enjoy when he or she becomes the legal owner.

What is meant by 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 the difference between a legal interest and an equitable interest?

Unlike a right recognisable in law, all equitable rights are enforceable only at the discretion of the court. Legal rights, however, are enforceable as of right. Once the existence of the right is established it is not really open to the court to consider the merits of the situation before giving a remedy.

What is an equitable interest contract?

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. The contract will contain a clause that stipulates the sale is contingent on his purchase of the property.

What are equitable interests in land?

An equitable interest is an “interest held by virtue of an equitable title (a title that indicates a beneficial interest in property and that gives the holder the right to acquire formal legal title) or claimed on equitable grounds, such as the interest held by a trust beneficiary”.

What is an equitable lease?

An agreement for the grant of an interest in land on terms that correspond to a legal lease but do not comply with the necessary formal requirements of a legal lease.

Can equitable easements be overriding?

Equitable easements that are created after the commencement of the Land Registration Act 2002 cannot rank as interests which override registered dispositions of the servient land, whereas equitable easements that were created before its commencements will continue to override such registered dispositions of the …

What is the difference between a legal and equitable easement?

An easement is a proprietary right which one person has over the land of another. Easements are capable of being legal under s. 1(2)(a) LPA 1925 provided they are created by deed and are either fixed term or ‘forever’. The main difference between a legal and equitable easement is their ability to bind a third party.

Does an equitable easement bind a purchaser?

Legal and Equitable Easements An equitable easement on the other hand will only bind a purchaser of the servient land if he has notice of its existence. The fact that a purchaser has failed to inspect the property or the legal title does not allow him to deny that he had notice of the easement.

What makes an easement legal?

The legal term “easement” refers to the legal right to use another person’s real property, for a specific purpose and a specific amount of time. An easement gives a person the legal right to go through another person’s land, as long as the usage is consistent with the specified easement restrictions.

What is an easement example?

An easement is a limited right to use another person’s land for a stated purpose. Examples of easements include the use of private roads and paths, or the use of a landowner’s property to lay railroad tracks or electrical wires.

What can you put on an easement?

Easements NSW

• Rights of way (similar to the driveway example, but also including walkways or pathways);
• Public utilities, such as gas, electricity or water and sewer mains;
• Parking areas;
• Access to light and air; and.
• Shared walls.