Question: What Is An Equitable Interest In Real Property?

What does it mean to have an interest in land?

In essence, an interest in land is a right (or a “bundle” of rights) that someone has in, against, under or over – or with respect to – a parcel of land.

If the person holding the interest in land is the current owner of the land itself, then the “interest” means “simply” ownership of that land..

What is the equitable doctrine of notice?

Under the doctrine of notice, a bona fide purchaser of a legal estate for value takes priority over any pre-existing equitable interest which is not registrable as a land charge, provided they did not have actual, constructive or imputed notice of their existence.

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.

An interest or right enforceable in a court of equity, protected by equitable remedies. An equitable interest is an interest in or right over property, which gives the holder the right to acquire formal legal title.

How do you prove beneficial interest in property?

In order to establish a beneficial interest in a property, a cohabitant may be able to assert his or her interest by showing that there was some kind of implied trust in place. These trusts are often known as “resulting” or “constructive” trusts.

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. … Keep in mind that equitable title does not actually transfer ownership of the property.

What is an equitable estate in land?

A right in property recognized by the Court of Chancery, as distinct from a legal estate recognized in common law courts (see estate). Equitable estates reflected legal interests but could be more flexible (compare shifting use; springing use).

Is option to purchase a contract?

An Option to Purchase agreement is a legal contract signed between a buyer and a seller of a residential property, and basically gives the buyer the exclusive rights to purchase a property from the seller in the future.

Is a mortgage an equitable interest?

Upon execution of the mortgage, the mortgagor no longer has the legal title but retains an equitable interest, called the equity of redemption, i.e. the right to have the title reconveyed on payment of the loan.

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.

There are various legal interests in land under the LPA as follows.Legal easements, rights and privileges. Legal easements are rights attached to one piece of land, entitling the occupy to do something over another’s property. … Rentcharges. … Charge by way of legal mortgage. … Rights of entry.

What is an equitable charge?

An equitable charge is a security whereby the owner of the property only confers on the security holder the right to payment of the debt. It, however, does not involve transfer of title or possession. Equitable charges focus on intention. The language of a document is crucial in determining the intent of an agreement.

What is equitable ownership of property?

Equitable interests may arise because the formalities for the creation of a legal interest have not been completed. For the most part, beneficial or equitable ownership may be enjoyed in much the same way as legal ownership. It is possible for there to be beneficial tenants in common and beneficial joint tenants.

How can an equitable interest in land be defeated?

Once an equitable interest is created in property and the equitable owner continue to be in possession of the property, the equitable interest cannot be defeated by subsequent legal interest even if obtained without notice of the equitable interest.

Is an option to purchase an equitable interest?

A contract in which the owner of land agrees to create or convey a legal estate in the land; for example, he may contract to grant a lease or to sell or he may grant a valid option to purchase. The contract confers on the purchaser an equitable interest that is enforceable against third parties if registered.

What is an option to purchase land?

An option to purchase is an agreement between parties that gives one party (the purchaser) the right to take up the option to purchase property, goods and/or land from the other party (the vendor) at any time within a specified period.

What does it mean to have an interest in a property?

Property interest refers to the extent of a person’s or entity’s rights in property. It deals with the percentage of ownership, time period of ownership, right of survivorship, and rights to transfer or encumber property.

the right to own all or part of something: a legal interest in sth The trustee has a legal interest in the property.

Can I register an interest in a property?

You are right to register your interest in your family home. Any solicitor worth their would insist you do that, to secure your rights, if your name is not on the deeds. Yes the Land Registry does send a letter and it is very recognisable, with a logo at the front of the envelope.

The register records the ownership of the legal estate in the property, not the underlying ownership (the ‘equitable’ or ‘beneficial’ interests). … A beneficial owner is a person entitled to the benefit of the land and on their death the equitable interest may not pass in the same way as the legal ownership does.

What is an equitable proprietary interest?

Related Content. An equitable proprietary interest arises when a debtor undertakes to transfer asset to a creditor by way of security, even if the formalities for transfer of legal title have not been completed.

Is a lease an interest in land?

A lease is an interest in land granted by one person (Landlord) to another (Tenant) which confers exclusive possession for a fixed period of certain duration. A lease is both a contractual right and a proprietary interest. Distinguishing leases from other interests: Other interests that give access to land of another.

Is an option to purchase binding?

An option to purchase real estate is a legally-binding contract that allows a prospective buyer to enter into an agreement with a seller, in which the buyer is given the exclusive option to purchase the property for a period of time and for a certain (sometimes variable) price.

Which is the greatest interest a person can have in land?

fee simple estateA fee simple estate is the highest and most complete interest in the land that can be recognized by law. The owner of the fee simple estate can exercise all rights of ownership over the land infinitely.

Are equitable interests binding?

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 in land law?

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.” The equitable interest is a right in …