Equitable Title

Definition: Equitable title is a beneficial ownership interest recognized in equity, often including the right to obtain legal title upon satisfying a valid agreement.

Example

Under an enforceable contract for deed, the buyer holds an equitable interest while the seller retains legal title pending performance.

Keep the distinction clear

Equitable title is not identical to possession or recorded legal title. The contract and applicable law determine the buyer's rights.

Related terms

Contract for Deed · Title · Vendee

Keep studying

Deeds, Abstracts, Title Opinions, and Title Insurance

References: California DRE: real estate glossary

Pronunciation (US): EK-wih-tuh-buhl TY-tuhl (capitals show stress)

Pronunciation reference: Merriam-Webster