Equitable interests
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Legal Property Rights, Equitable Property Rights and Personal Rights
Explain the difference between Legal property rights, Equitable property rights and Personal Rights.
In distinguishing legal property right, equitable property right and personal right, the nature of the rights will be discussed. A legal property right, sometimes termed as legal title implies actual ownership of the property whereas equitable property right which is also known as equitable title refers to the actual enjoyment of the property. In the context of equity and trust, a person who owns legal title is known as the trustee whereas a person who owns the equitable title is called the beneficiary. Both legal property right and equitable property right are proprietary in nature, meaning that it is transferable and is capable of binding on a third party, for example, a purchaser. An example of legal property right and equitable property right is a lease. On the other hand, a personal right is merely personal in nature and is not binding on a third party. A person with a personal right is only able enforce his right against the party which he enters into contract with. An example of personal right is a license.
Equity is a separate body of rules and remedies which has developed alongside the common law. It has aided the protection of different rights and interests of and in relation to property. Although property can be seen as ‘things’, you can have different interests or rights in property depending on the persons relationship to the property and the nature of it.
Property can be seen to be a power relationship between a person and a resource, ownership is seen as the highest interest as you will have absolute power over that item. With full ownership a person is free to do whatever he pleases with that item. (Lawson and Rudden, The law of property (1982) p8)
Lawson and Rudden identifies three main elements of ownership 1) to make physical use of a thing, 2)
Heading
Legal Property Rights, Equitable Property Rights and Personal Rights
Explain the difference between Legal property rights, Equitable property rights and Personal Rights.
In distinguishing legal property right, equitable property right and personal right, the nature of the rights will be discussed. A legal property right, sometimes termed as legal title implies actual ownership of the property whereas equitable property right which is also known as equitable title refers to the actual enjoyment of the property. In the context of equity and trust, a person who owns legal title is known as the trustee whereas a person who owns the equitable title is called the beneficiary. Both legal property right and equitable property right are proprietary in nature, meaning that it is transferable and is capable of binding on a third party, for example, a purchaser. An example of legal property right and equitable property right is a lease. On the other hand, a personal right is merely personal in nature and is not binding on a third party. A person with a personal right is only able enforce his right against the party which he enters into contract with. An example of personal right is a license.
Equity is a separate body of rules and remedies which has developed alongside the common law. It has aided the protection of different rights and interests of and in relation to property. Although property can be seen as ‘things’, you can have different interests or rights in property depending on the persons relationship to the property and the nature of it.
Property can be seen to be a power relationship between a person and a resource, ownership is seen as the highest interest as you will have absolute power over that item. With full ownership a person is free to do whatever he pleases with that item. (Lawson and Rudden, The law of property (1982) p8)
Lawson and Rudden identifies three main elements of ownership 1) to make physical use of a thing, 2)