What is meant by equitable title?

Equitable title refers to a person's right to obtain ownership of a property in the future, contingent upon certain conditions being met. When someone holds equitable title, they possess an interest that may not be legally enforceable yet, but it gives them the right to benefit from the property and to gain full legal title at a later date. This typically occurs in situations such as land contracts, where the buyer has made an agreement to purchase the property but has yet to receive the legal title.

Understanding this concept is crucial, as it distinguishes between merely having rights tied to property without full legal control and having complete ownership. Other options relate to various forms of property rights but do not accurately capture the essence of equitable title. For example, having full ownership is not an accurate reflection of equitable title, which implies future rights rather than current ownership. Similarly, the right to occupy a property doesn't necessarily involve the future transfer of legal title but rather a present right. The option regarding the ability to sell one’s interest incorrectly suggests that equitable title includes the present ability to transfer ownership, which it does not encompass without legal title being established.