What is equitable title?

Equitable title refers to the legal right to obtain full ownership of a property once certain conditions or obligations have been met. It can be distinguished from legal title, which refers to the actual ownership of the property legally recognized by the government.

When someone has equitable title to a property, they have the right to possess and use the property as if they were the legal owner, even though they may not hold the legal title. This typically occurs in situations where a property is being purchased through a contract, such as a lease-to-own agreement or a land contract, where the buyer is making payments over time before obtaining the legal ownership.

In these situations, the seller retains the legal title to the property until the buyer has fulfilled all the terms of the agreement, at which point the legal title is transferred to the buyer. Until that time, the buyer holds equitable title and can enjoy the benefits and responsibilities of ownership.

Equitable title is recognized and enforced by courts to protect the rights of the party with equitable title in case of disputes or breaches of contract. It allows the party with equitable title to seek legal remedies and protections as if they were the legal owner of the property.