What is "equitable title"?

Equitable title refers to the interest in a property that gives the holder the right to obtain legal title in the future. This concept is often relevant in real estate transactions where the buyer has entered into a contract to purchase a property but has not yet completed all the formalities necessary to obtain legal title.

When a buyer has equitable title, they possess a beneficial interest in the property, allowing them certain rights such as the ability to enforce the purchase agreement and potentially benefit from the property's value appreciation. In many cases, equitable title is established when a contract is signed, even if ownership has not yet transferred. This means the buyer is entitled to the property under the terms of the agreement, which can be actionable if there is a breach by the seller.

In comparison, other options do not fully encompass the essence of equitable title. A legal claim to ownership without transfer of title does not highlight the future rights to ownership that equitable title encompasses. Similarly, a temporary ownership right in a lease addresses different interests altogether, focusing primarily on the tenant's rights rather than a buyer's future entitlement to ownership. Lastly, an unconditional right to use a property does not align with the concept of equitable title, as it suggests enjoyment of rights without the context of ownership and future