equitable charge

An equitable charge is created when a debtor or a person with some other obligation uses property as security for the debt or obligation. The charge is created because the property is 'charged' with the payment of the debt or discharge of the obligation.

An equitable charge is enforceable by a court order, which means that the property is sold to realise the security interest for the debt or obligation.

Usage: The debtor granted the judgment creditor an equitable charge over their house to delay enforcement proceedings.

Related Words: charge; mortgage; security interest; pledge; surety; equitable mortgage; lien; real property; pledge; asset; legal mortgage.