What is the difference between a legal estate, legal interest and an equitable interest? Read further to know more:
Legal Estate
Since 1925, it is possible to hold titles in only two forms- an estate in fee simple absolute in possession(freehold property) and an estate for a term of years absolute(leasehold property).
Thus, a person who holds an estate in fee simple absolute is said to hold the land indefinitely and can be given or received in inheritance. But, a person in charge of an estate in term of years absolute is said to hold a property for a fixed period.
Legal Interests
Interests can be divided into legal and equitable interests. The two types of legal interests include:
a) Interest created by freehold property
b) A charge created through a legal mortgage
Equitable Interests:
Besides the interests mentioned above, all others take effect as equitable interests (Law of Property Act (LPA) 1925, s 1).
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