Ohio Real Estate Practice Exam

The benefit associated with equitable title is the right to use and enjoy the property. Equitable title refers to the right of a buyer (or beneficiary) to obtain full ownership of a property once certain conditions are met, typically on the completion of a contract. This concept allows the holder to possess the property and benefit from its use, even though the legal title has not yet transferred.

Having equitable title means the buyer has a beneficial interest in the property that grants them rights similar to ownership, allowing them to live in, rent out, or otherwise utilize the property. This enjoyment and use can occur before the legal title is formally conveyed, providing significant value to the equitable title holder.

In contrast, legal decisions related to the property are generally made by the holder of the legal title. Ownership of the land in perpetuity implies clear, unconditional ownership, which equitable title does not confer until all contractual obligations are fulfilled. Responsibility for property taxes usually falls upon the holder of legal title, though agreements might stipulate different responsibilities. Thus, the right to use and enjoy the property encapsulates the essence of what equitable title grants to the holder.