What are equitable interests?

Equitable interests refer to rights or claims that arise from principles of fairness and justice in the context of property ownership. These interests are typically recognized by courts of equity, which address issues that are not adequately resolved by strict legal rules. In this context, claims based on equitable grounds allow individuals to assert rights in a property, even if those rights are not reflected in the traditional legal title.

For example, if someone has made significant improvements to a property or has a contractual agreement related to that property, they may have an equitable interest. This means they can seek a remedy or enforcement through a court, even if they do not hold the legal title to the property itself. Thus, the concept encompasses situations where the legal title does not fully reflect the true ownership rights or benefits as perceived under equitable principles.

This understanding highlights the importance of fairness in property rights and ensures that those who have a legitimate interest in property can seek justice, regardless of formal title ownership.