My role with AllExperts is limited to providing general information and suggestions for educational or general knowledge purposes. Perhaps the most common example of an equitable interest is the interest of a beneficiary under a trust. Land Sale Contracts Title to real estate bought through a land sale contract is split into legal title and equitable title. You may also wish to know what remedies are available in the event of a breach of those rights and against whom action can be brought. An equitable interest in property belongs to someone who has obtained equitable title to it or is awarded the interest as part of an equitable relief.
Just like in the express trust situation discussed above, the law will recognize that you are the trustee with legal title of the car and your son is the beneficiary. Please tell me will the police do anything about this. A trust is a collection of assets where a person or entity, called a trustee, holds legal title over the assets but has a legal duty to manage the trust assets for the benefit of one or more persons known as beneficiaries. While the trustee holds legal title, the beneficiaries hold an equitable interest in the trust property. You must list your legal interest on your bankruptcy schedules. Here, the seller loans the buyer some funds, and allows the person to live on the property. After this, the buyer will obtain both equitable and legal title.
Your attorney can propose options for dealing with the situation and for protecting your property rights. Another example is in a land contract sale. Since Beth only holds equitable title, she doesn't own the house but she does have the right to use and enjoy it, something that Alvin doesn't get to do. A person holding an equitable interest would not have his or her name reflected on the title and the presence of such an interest often has to be decided by a court applying certain tests. A legal title holder of unregistered land will not have a physical title reflecting his or her name, but must be able to show satisfactory evidence of ownership. Equitable interest is when a person can enjoy the use of the asset without legally owning it.
It defines common acronyms and includes links to information on major legislation and related legal terms. The contract must be capable of specific performance. Trust law includes both mandatory law that is, law which cannot be excluded, such as the irreducible core, information rights and the supervisory jurisdiction of the court and default law that is, law which can be excluded by express provision in the trust deed. Trust law includes both mandatory law that is, law which cannot be excluded, such as the irreducible core, information rights and the supervisory jurisdiction of the court and default law that is, law which can be excluded by express provision in the trust deed. There must be evidence of a concluded agreement. Some people collect guns or bayonets, only.
One area of real estate transactions in which the equitable interest claim is raised by plaintiffs are in rent-to-own arrangements. Thus, while a legal easement over a piece of land could be enforced against a purchaser of land, it might not be enforceable against certain purchasers. Where property is sold, however, to a third party with no knowledge of the interest of the equitable owner, he will have no claim against that third party. Regent v Millet Husband and wife entered into agreement with parents. Without getting too technical, a legal interest is simply ownership that is readily recognized by law.
The buyer obtains equitable title, while the seller retains legal title to the property until the payments are completed. Let's say that Abby is dying of cancer and has created a trust for her minor children Ben, Charles, and Dana. You will take 1 minute and 39 seconds to read this entry. The most common type of equitable interest is an express trust. The article below provides a clear overview of the two terms and, with the aid of an example, highlights the differences between legal interest and equitable interest. Amy has agreed to purchase a house from Daniel under a contract that stipulates that Amy the buyer will pay the price of the house in installments and once the price has been paid in full, Daniel the seller will transfer the deed of the house to Amy.
The delinquent taxpayer is no longer the legal owner of the premises. But what exactly is a legal interest and what is an equitable interest in property? Let's look at an example. Tenancy-in-Common is ownership where co-owners have equal rights to the property and equal shares unless a different arrangement is recited in the deed. That begs the question: can the bankruptcy trustee take the car? In equity, a judge determines what is fair and just and makes a decision as opposed to deciding what is legal. So please don't treat it as legal advice or rely on the information.
Trust Property The concept of legal and equitable title is also important when real property is held in a trust. He may either bring suit for breach of the trust or, in the event that the trustee is seeking to dispose of the property, he may prevent any dealings with the property by lodging what is known as a caveat against the title. This is a relationship whereby one person the trustee holds land for the benefit of another person the beneficiary. Therefore distress was a legal remedy. In this article we examine, in the context of registered land, the differences between holding a legal interest versus an equitable interest in property and the manner in which these interests may be acquired. One group that often has this type of interest in are the beneficiaries of.