An equitable owner is a person who has the right to utilise and receive benefits from something, despite not having legal ownership. This can occur when property is held in trust or when someone has a contractual entitlement to something. The equitable owner has the right to pursue legal action for infringement and enjoy the advantages of the property, even if someone else holds legal title.
An equitable owner is an individual who, in equity, is acknowledged as the rightful owner of something, despite the legal title being held by someone else. This implies that the equitable owner possesses the rights to occupy, utilise, and transfer the property, even if they do not possess legal ownership. For instance, if a property is held in a trust, the beneficiary of the trust is considered the equitable owner, while the legal title is held by the trustee. The beneficiary has the authority to utilise and enjoy the property, and can even sell it, although the trustee retains legal control. Another example of an equitable owner is a corporate shareholder who possesses the ability to buy or sell shares, but is not officially registered as the owner in the corporation’s records. In essence, an equitable owner holds specific rights and interests in a property, despite lacking legal ownership. This can occur in various scenarios, including trusts, intellectual property, and corporate ownership.
An equitable owner is someone who has the right to enjoy the benefits and profits of a property, even though they may not have legal title to it. They have an equitable interest in the property.
A person can become an equitable owner through various means, such as a trust arrangement, a contract for sale, or by contributing to the purchase price of the property.
An equitable owner has the right to possess, use, and enjoy the property, as well as the right to any income or profits generated from it. They also have the right to sell or transfer their equitable interest.
While an equitable owner can sell or transfer their equitable interest, they cannot transfer legal title to the property itself. The legal owner would need to be involved in any sale or transfer of the property.
An equitable owner generally does not have the power to mortgage the property without the consent of the legal owner. However, they may be able to use their equitable interest as collateral for a loan.
Yes, an equitable owner can be held liable for property-related obligations, such as property taxes or maintenance costs, to the extent of their equitable interest in the property.
An equitable owner does not have the legal authority to evict a tenant unless they also have legal title to the property. Only the legal owner or someone with the legal authority to act on their behalf can initiate eviction proceedings.
An equitable owner may be able to make changes or improvements to the property, but they should obtain the consent of the legal owner before doing so. The legal owner ultimately has control over the property.
In most cases, tax deductions related to the property, such as mortgage interest or property tax deductions, can only be claimed by the legal owner. However, it is advisable to consult with a tax professional for specific advice.
An equitable owner does not automatically inherit the property upon the death of the legal owner. The property would typically pass according to the legal owner’s will or the laws of intestate succession, depending on the jurisdiction.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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