Equitable Title Clause Samples
The Equitable Title clause defines the rights of a party to benefit from or control property, even if they do not hold formal legal ownership. In practice, this clause often applies in real estate transactions where a buyer, after signing a contract but before closing, gains the right to use, improve, or sell the property, despite the seller retaining legal title until final payment. Its core function is to clarify the division of rights and responsibilities between parties during the period between contract execution and legal transfer, thereby reducing disputes and ensuring both parties understand their interests in the property.
Equitable Title. No beneficial interest in or equitable title to the Property will pass to Purchaser until Closing.
Equitable Title. Exists in a sales contract, land contract, or trust deed. It is the buyer’s or lender’s interest in the property. Both lender and buyer are considered to have an equitable title interest while the title is held by another party. The courts will hear a lawsuit brought by the party not in legal title, they have legal standing. Liquidated Damages
Equitable Title. Provided that the Buyer is not in default, the Seller grants the Buyer an equitable interest in the Property with the right to use the Property in the manner of a reasonable homeowner. This grant excludes the right to sell or sublet the Property, including short-term rentals through such services as AirBnB and VRBO. Sale or sublease of the Property requires express written consent of the Seller, which may be withheld for any reason at the Seller’s reasonable discretion.