What is the difference between legal title and equitable title?

Legal title and equitable title are two types of ownership in Washington State real estate law. Legal title refers to the ownership documents, such as deeds or other official documents, that legally identify the owner of a property. The holder of legal title has a legal ownership interest in the property, which is recognized and upheld by the courts in the event of a dispute. Equitable title, on the other hand, is the right to possess or use the property even though the legal title of the property may be held by another. It is an equitable interest, rather than a legal one, and is based on an individual’s right to exercise their right to claim a beneficial interest in the property. In the event of a dispute, the court may award a holder of equitable title an award of property ownership, even though they do not have the legal title. The two types of titles can become intertwined in cases of inheritance. An individual may have legal title to a property, but not necessarily hold the property in full equitable title. Inheritance law in Washington often calls for the passing of equitable title to the heirs of a deceased person, even if the legal title remains with the estate. This means that the heirs may have a beneficial interest in the property, and can take action to enforce this interest, even though the legal title is held by another.

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