Define: Equitable Title

Equitable title refers to a beneficial interest or right that a person has in property, even though legal title to the property is held by another party. It arises from an agreement or arrangement that entitles the individual to possess, use, or benefit from the property in some way, even if they do not hold legal title. Equitable title holders have certain rights and interests in the property, such as the right to receive income, sell, or transfer their interest, subject to any terms or restrictions outlined in the agreement. While equitable title does not grant full ownership rights like legal title, it provides the holder with enforceable rights against the legal title holder and third parties.

A form of title to trust property held by the beneficiary, where legal title resides in the trustee and the courts recognize certain rights in favour of the former. While the trustee’s interest in this property appears to be one of complete ownership and possession, the trustee does not have the right to receive any benefits from the property. Such a right belongs solely to the beneficiary and constitutes the very substance of the equitable title.

Possession of this title implies judicial recognition and enforcement of the beneficiary’s right to enjoyment and use with respect to a particular asset or property under the principles of equity. Although separate courts with equitable jurisdiction no longer exist, the distinction between equitable and legal title remains an essential element of trust and property law. This is due to the continuing social utility of a rather unique form of relationship, in which one or more individuals hold property subject to certain duties of protection and management for the benefit of others.

See also trust, beneficiary, trustee, equity.

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: 29th March 2024.