An equitable interest is one which would be recognised by the Court of Chancery. It is enforceable in limited circumstances as opposed to a contractual obligation which is strictly enforceable regardless of who is involved. Contract law may be certain but it is not always fair. An equitable interest usually carries with it a significant element of fairness.
An equitable interest will not necessarily
be registered by Land Registry and may drop away if a later purchaser of the property
was not, and could not reasonably have been, aware of the equitable interest before
entering the contract. Accordingly, anyone with an equitable interest in a property
should talk to a solicitor about having the matter
registered as a covenant to maintain its long-term validity.