Practical Law Glossary
PRACTICAL LAW
•
Maintained
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.
In the context of an acquisition of real property, the purchaser holds equitable title to the property from the date the purchase and sale agreement is executed, although legal title is not transferred until the deed to the property is transferred from the seller to the purchaser.
Equitable title is also seen in states where lenders secure loans on real property with deeds of trust instead of mortgages. Although a borrower retains equitable title to the property throughout the pendency of the loan, it relinquishes legal title to the property to a third-party trustee until the loan is fully repaid to the lender.
End of Document
Resource ID 8-581-5965Document Type Glossary
Products

PLC US Antitrust, PLC US Bankruptcy & Restructuring, PLC US Capital Markets & Corporate Governance, PLC US Commercial Transactions, PLC US Corporate and M&A, PLC US Data Privacy & Cybersecurity, PLC US Employee Benefits and Executive Compensation, PLC US Federal Litigation, PLC US Finance, PLC US Glossary, PLC US Intellectual Property and Technology, PLC US Labor and Employment, PLC US Law Department, PLC US Real Estate, PLC US Tax

© 2024 Thomson Reuters. No claim to original U.S. Government Works.