What does equitable title mean?

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 risk of loss in real estate contract?

For real estate purchasers and sellers, the risk of loss doctrine governs whether the seller or the purchaser assumes the risk of the property being damaged or destroyed between contract execution and closing.

Can a person be equitable?

Equitable is an adjective that means fair or impartial. Something that is equitable does not unduly benefit one person more than any other person.

What is the uniform vendor and purchaser risk Act?

California Civil Code §1662 (the Uniform Vendor and Purchaser Risk Act, or “UVPA”) provides that in sale contracts; a) if neither title nor possession has been transferred, and a material part of the property is destroyed, the seller cannot enforce the contract, and the buyer gets a refund.

What does Equitable mean for a buyer?

Equitable title in purchase of real property When a buyer of real property executes a purchase and sale agreement with a seller, the buyer acquires equitable title to the property. This means that they have the right to eventually obtain full legal ownership of the property, as long as they pay the purchase price.

What does Equitable mean in land law?

Related Content. 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 legal and equitable?

The difference between legal and equitable rights is that legal rights are always enforceable against the land’s new owners. However, equitable rights are always more flexible and less rigid than legal rights.

What is the role and purpose of equity?

Equity is important because it represents the value of an investor’s stake in a company, represented by the proportion of its shares. Owning stock in a company gives shareholders the potential for capital gains and dividends.

What is an equitable estate?

An equitable estate is a right or interest in land, which, not having the properties of a legal estate, but being merely a right of which courts of equity will take notice, requires the aid of such court to make it available.

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 the purpose of equitable conversion?

Equitable conversion is a doctrine of the law of real property under which a purchaser of real property becomes the equitable owner of title to the property at the time he/she signs a contract binding him/her to purchase the land at a later date.

What is the difference between equitable title and legal title?

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.