Equitable Interest
An interest in property recognised by equity rather than existing as a legal estate. Since the Law of Property Act 1925, any estate, interest, or charge in land that is not one of the limited legal estates authorised by the Act takes effect only as an equitable interest.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
The Law of Property Act 1925 is the statutory foundation of the modern distinction between legal and equitable interests in land. Having listed the narrow set of estates and charges that can exist 'at law', the Act provides simply that '(3)All other estates, interests, and charges in or over land take effect as equitable interests.'
The Act goes on to give the resulting category its formal name: 'Estates, interests, and charges in or over land which are not legal estates are in this Act referred to as “equitable interests,” and powers which by this Act are to operate in equity only are in this Act referred to as “equitable powers.”' A beneficial interest under a trust of land is the most common everyday example — the trustees hold the legal estate, while the beneficiaries' rights exist only as equitable interests, enforceable against the trustees and, in some circumstances, against third parties who take the land with notice of them.
Related terms
Official sources
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