What is meant by proprietary interest?
A proprietary interest is a property right; an interest held by a property owner together with all appurtenant rights; the interest in something held by the owner such as a shareholder in a corporation, a farmer in a crop, or a storekeeper in store inventory. [Last updated in July of 2021 by the Wex Definitions Team]
What are examples of equitable interests?
An example of equitable interest is the beneficiary’s interest in a trust or a silent partner’s interest in a partnership. Meanwhile, in a real estate transaction, the seller holds legal interest; the buyer, equitable interest[2]. Equitable interest can also represent a person’s financial interest in the property.
What is meant by equitable ownership?
Equitable ownership, in the context of corporate/commercial law, is a doctrine under which an individual who exercises sufficient control over the corporation may be deemed an equitable owner, notwithstanding the fact that the individual is not a shareholder of the corporation.
What are proprietary rights examples?
For example, the owner of an apartment can choose to live in it himself, rent it to another person, leave it vacant, or use it in any other peaceful way. The owner of private property also has the right to all of the income or proceeds that are made from the delegation of the property.
How do you establish a proprietary interest?
To establish proprietary estoppel The sole legal owner will need to have given their partner some sort of representation, assurance, or encouragement that if they paid towards outgoings such as utility bills, food or holidays for example they would receive a beneficial interest in the property.
Do beneficiaries have a proprietary interest?
The typical trust is one where the beneficiary is entitled a definable beneficial proprietary interest in the trust assets.
What is the difference between legal and equitable interest?
The equitable or beneficial interests Think of the beneficial interests as being what the land turns into when sold – money. Money can be divided. Unlike the legal estate, the beneficial ownership can be split into equal or unequal shares.
Is a mortgage an equitable interest?
An equitable mortgage arises where the formalities to create a legal mortgage have not been completed or where the asset being mortgaged is only an equitable interest. An equitable mortgage only transfers a beneficial interest in the asset to the mortgagee with legal title remaining with the mortgagor.
Is a mortgage a legal or equitable interest?
A mortgage can be legal or equitable and involves the transfer of a legal or beneficial interest in the secured property. A charge simply creates rights over the secured property without any associated transfer of title and is always equitable.
What is an equitable personal right?
Personal equitable right or personal equity A “personal equity” refers to the right of the holder to seek a remedy against a specific person in a court of equity.
Is proprietary estoppel an equitable interest?
What is proprietary estoppel? Proprietary estoppel is an equitable doctrine that prevents someone from relying in certain facts or rights which are different to earlier ones – to the detriment of someone else. This, says the law, is unconscionable behaviour.
What is the difference between personal and proprietary rights?
Personal and proprietary rights For example, if A gave permission to B to lawfully use his property for something (i.e. a licence). Proprietary rights (i.e. rights in rem or proprietary interests): These are rights that are capable of affecting third parties; not just the people who originally agreed to it.
Is an equitable interest the same as a beneficial interest?
The beneficial owner of the land will have a right to the income from the property or a share in it, and a right to the proceeds of sale of the property or part of the proceeds. A beneficial interest in property is an equitable interest.
Is equitable interest a legal interest?
Legal interest is when a person has ownership over an asset and can legally enforce his rights over the said asset. Equitable interest is when a person can enjoy the use of the asset without legally owning it.
What is the difference between legal and equitable interests?
This was expressed by saying that legal rights were ‘good against the world. ‘ By contrast, equitable rights were only rights in personam; ie, rights which were enforceable against certain categories of person, because it was considered to be fair or equitable that they should take subject to them.
What is the example of equitable mortgage?
Equitable mortgage is also known as Mortgage by deposit of title deeds As the name suggest, equitable mortgage is created by the borrower in favour of the lender by deposit of title deed of immovable property as security to a lender until the loan is fully repaid.
Can you sell an equitable interest?
Equitable title establishes the person’s financial interest in the property. This is why a property investor can hold equitable title and list a property without having legal title. However, they cannot actually sell the property.
What are proprietary rights?
Proprietary rights, also termed property rights, are the rights that accompany legal ownership of tangible or intangible property; rights over or in respect of property. [Last updated in July of 2021 by the Wex Definitions Team]
What are the four types of property rights?
The main legal property rights are the right of possession, the right of control, the right of exclusion, the right to derive income, and the right of disposition.