Equitable Mortgage

Definition of Equitable Mortgage

Any agreement to post certain property as security before the security agreement is formalized. If a person transfers property by deed absolute to his creditor as security for a debt with the mutual understanding that such property will be reconveyed by the creditor on the repayment of the debt, a court of equity will consider such a deed a mortgage, though an innocent purchaser for value from the creditor can cut off the equitable rights of the debtor. See also Mortgage.

That's the definition of Equitable Mortgage in Black's Law Dictionary 6th Edition. Courtesy of Cekhukum.com.