Meaning & use
equitable mortgage
Last updated
Meaning
nouncountablelegalfinance
A legal arrangement where a lender has a right to a property as security for a loan, even without full legal ownership.
Grammar: Countable: you can say 'an equitable mortgage' or 'equitable mortgages'.
Patterns
- create an equitable mortgage
- hold an equitable mortgage
- an equitable mortgage over something
The bank held an equitable mortgage over the property.
An equitable mortgage can arise when the borrower deposits the title deeds with the lender.
The court recognized the equitable mortgage despite the lack of a formal contract.
Word forms
| plural | equitable mortgages |
|---|
Common combinations
- create an equitable mortgage
- The parties created an equitable mortgage by depositing the deeds.
- hold an equitable mortgage
- The lender holds an equitable mortgage over the land.
- equitable mortgage over property
- They granted an equitable mortgage over their home as security.
Synonyms and how they differ
- equitable lien
- In US law, this term is often used for a similar concept, though the technical details may differ.
Word family
Commonly confused: equitable mortgage or legal mortgage?
equitable mortgage vs legal mortgage
A legal mortgage involves full legal ownership transferring to the lender, while an equitable mortgage gives the lender a right without full legal title.
Practice
What is an equitable mortgage?
Choose one answer.
Equitable mortgage is a legal term about the lender's rights, not about fairness of interest or equal shares.
Make it your own
Write a sentence using “equitable mortgage”, then check it and compare it with the examples above.