Importance of Affidavit of Equitable Interest
The law is one thing we always get confused. We want legal advisors to tell what exactly it means. Because it has so much of twists and turns. To understand it completely and be risk-free we will be always looking for a legal advisor. An Affidavit of Equitable Interest is used to declare a financial interest in real estate property.
For example, you may own a land. But that doesn’t mean you are the only interest to the land. Basically, there are two types of rights in a land, one is
Legal right and Real right. When you own a land, you hold the legal right. Let us say, suppose the land is in the name of the trust there will be two parties that will enjoy the benefits of the land. They are The trustee and The beneficiary
Here the trustee has the legal rights over the land. But he holds the land for the benefit of another person. Here the trustee holds the legal interest. On the other hand, the beneficiary holds the equitable interest. The beneficiary can also gain an interest (Equitable interest) in a land when they have sold a land but not received the payment. In simple words, the interest, which is not registered in the system, is called as an equitable interest or an unregistered interest. The entire rule which surrounds the equitable interest or and unregistered interest is very technical and complicated. In some cases, a person who holds the equitable interest has better rights than the person who holds legal interest. So it is important to know what interest people have before entering into an agreement.
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