Equitable title

A legal title is “one which is complete and perfect so far as regards the apparent right of ownership and possession, but which carries no beneficial interest in the property, another person being equitably entitled thereto; in either case, the antithesis of ‘equitable title.’

By definition, a legal title is the opposite, or at least the antithesis, of an “equitable title.” An equitable title, as opposed to a legal title, “is a right in the party”, rather than only appearing to be a right. It is “the beneficial interest of one person whom equity regards as the real owner, although the legal title is vested in another.”

Even though you may discharge a debt and obtain legal titles, you still do not have clear and good titles, which “are synonymous; ‘clear title’ meaning that the land is free from incumbrances, ‘good title’ being one free from litigation, palpable defects, and grave doubts, comprising both legal and equitable titles and fairly deducible of record.”

This division of true title into a legal title on one hand verses an equitable title on the other is called equitable conversion. Equitable conversion is a “Constructive conversion.”

CONVERSION is an, “alteration, interchange, metamorphosis, passage, reconstruction....”

BENEFICIAL INTEREST is the, “Profit, benefit, or advantage resulting from a contract, or the ownership of an estate as distinct from the legal ownership or control.”

BENEFICIAL USE is, “the right to use and enjoy property according to one’s own liking or so as to derive a profit or benefit from it…"

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