Legal Definitions - perfect equity

Perfect equity is a term used in law to describe a situation where a person or entity has a legal right or interest that is recognized by a court of equity. It refers to a situation where the only thing lacking for the right or interest to be recognized as a legal title is a formal conveyance or other investiture that would make it cognizable at law.

For example, if a person has paid the full amount due for a piece of real estate but has not yet received a deed, they have perfect equity in the property. This means that they have a legal right to the property, but they cannot yet claim ownership of it in a court of law because they do not have a formal title.

Another example of perfect equity is when a person has an ownership interest in a business. This means that they have a share in the company and are entitled to a portion of its profits, but they do not have a legal title to the business itself.

Overall, perfect equity refers to a situation where a person or entity has a legal right or interest that is recognized by a court of equity, but that right or interest is not yet recognized as a legal title because of a lack of formal conveyance or other investiture.