Define: General Equitable Charge

A general equitable charge is a legal concept that refers to a right or interest secured over property to secure the repayment of a debt or obligation. Unlike a legal charge, which involves a specific asset or property, a general equitable charge attaches to all of the debtor’s assets, present and future, as security for the debt. This means that if the debtor fails to repay the debt, the creditor has the right to pursue any of the debtor’s assets to satisfy the obligation, rather than being limited to a particular property. General equitable charges provide creditors with a broad level of protection and security, although they may be subject to certain limitations or priorities in the event of insolvency or bankruptcy proceedings.

Under the land charges act (1972), the ‘general equitable charge’, or class C(iii) charge, is an interest in unregistered land that is not secured by a deposit of title deeds, and does not fall into any other category of equitable charge. In order to prevent class C(iii) becoming a dustbin for all kinds of equitable interest, some important interests are specifically excluded. In particular, you can’t register an interest under a Trust in class C(iii). Probably the only interest that is likely to be encountered in this class now, and then only rarely, is an equitable mortgage.

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.