What is the meaning of legal interest in property?
Legal ownership, which grants the right to a legal interest in the land, and beneficial ownership, which grants the right to a beneficial interest in the property, are the two ways that land can be owned. The person who holds the property’s formal title is its legal owner; however, the person who is legally entitled to the property’s benefits is its beneficial owner. The rights that people and organizations have in their property are referred to as ownership interests. Property interest is a broad topic that includes ownership duration, ownership proportion, transfer rights, encumbrance rights, and rights of survivorship.
There are two main categories of property interests:
Legal ownership (LO) is the right to a legal interest in real estate, or the individual or organization that holds the legal title. The legal owner is identified on the title deed by the recorder of deeds. The property is under the owner’s control, including any sales or transfers.
Beneficial ownership (BO): The legal status of the individual or organization that benefits financially and economically from a property. No matter what title entries are kept at the recorder of deeds, BO has precedence.
The right to own or utilize property is referred to as a legal interest in that property. It belongs to the registered owner, or the person listed on the title deeds at the Land Registry. The owner has the power to govern the property due to their legal interest, which allows them to determine whether to sell or transfer it.
