What is meant by "legal (naked) title"?

"Legal (naked) title" refers specifically to a situation where a title holder has the legal ownership of a property, but lacks full ownership rights, such as the rights to occupy or control the property. This situation often arises in trusts or scenarios where the legal title is separated from equitable interests.

For instance, in a trust arrangement, the trustee holds the legal title to the property, but the beneficiaries hold the beneficial or equitable title. While the trustee can execute legal rights (like selling or transferring the property), they must do so for the benefit of the beneficiaries, not for personal gain. Thus, the person holding the legal title may appear to be the owner in a legal sense, but they do not have full rights to manage or benefit from the property as an owner would.

In contrast, a title that conveys full ownership rights indicates complete rights and control over the property, which does not apply here. A title that is completely unencumbered implies there are no liens or debts attached, while a title that automatically transfers to heirs pertains to inheritance laws, which do not capture the concept of "legal (naked) title."