What is the difference between legal title and equitable title?
Legal title is the right to own and possess a property, and the ownership evidence and rights associated with that title. Legal title is often created when certain activities happen like a sale, gift, or inheritance. It is often evidenced by a deed or other instrument. In Rhode Island, a deed must be signed by the grantor, or the person giving up title to the property, and the deed must be acknowledged by a notary or other authorized witness. Equitable title, on the other hand, is the right to benefit from the property, even if a person does not hold the legal title or own the interest in the tangible property itself. In Rhode Island, a person with equitable title has the power to bring a lawsuit to gain the full legal title. For example, equitable title could be awarded when a person has a valid contract to purchase a property but has not yet taken possession. Inheritance law in Rhode Island takes both legal and equitable title into account. When an individual dies, the estate assets are generally divided between legal title holders, who have the right to own and possess the assets, and those with equitable title, who have the right to receive the benefits of the assets. The estate administrator or executor has the responsibility to ensure that all parties with legal and equitable title receive their due.
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