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Legal Terms - equitable interests
property interests that were first distinguished from legal interests recognized in common-law courts by the Court of Chancery. They emerged in situations where enforcing a legal right went against the ideals of equity. At first, the individual who had a legal claim to the property in question might be sued for equitable rights (such as a trust or the *equity of redemption under a mortgage). The property was later subject to equitable interests by those who received it from the holder of the legal interests, and anyone who purchased property after learning of the equitable interests was obligated to abide by them. Everyone who took property under the existing law was subject to equitable interests, with the exception of those who bought it and should have known about them (i.e., a bona fide *purchaser for value without notice). Since 1925, notice, the *land charges system, or the notion of *overreaching have all been used to safeguard equitable interests.
property interests that were first distinguished from legal interests recognized in common-law courts by the Court of Chancery. They emerged in situations where enforcing a legal right went against the ideals of equity. At first, the individual who had a legal claim to the property in question might be sued for equitable rights (such as a trust or the *equity of redemption under a mortgage). The property was later subject to equitable interests by those who received it from the holder of the legal interests, and anyone who purchased property after learning of the equitable interests was obligated to abide by them. Everyone who took property under the existing law was subject to equitable interests, with the exception of those who bought it and should have known about them (i.e., a bona fide *purchaser for value without notice). Since 1925, notice, the *land charges system, or the notion of *overreaching have all been used to safeguard equitable interests.
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