Effects of Legal vs Equitable Title on Clearing Title
Effects of Legal vs Equitable Title on Clearing Title How it works: Legal vs Equitable Title? When adverse claims to a piece of Real Estate exist, many parties opt to file a quiet title action. There is a difference between legal vs equitable title. These adverse claims arise because of numerous issues, but the most common situations arises when one person has legal title to Subject Property while the other individual has contributed to the repairs and improvements, but is not on the most recently recorded deed (equitable title). One important thing to note however is that the holder of equitable title, one who contributes monetarily and is not on title, cannot maintain a quiet title action against the holder of legal title. There is one exception, which we’ll discuss below. The main difference between legal and equitable title is that legal title means your name is on the current deed. The term “legal title” has been defined as ‘one cognizable or enforceable in a court of law