1) a venerable group of rights and procedures to provide fairness, unhampered by the narrow strictures of the old common law or other technical requirements of the law. in essence courts do the fair thing by court orders such as correction of property lines, taking possession of assets, imposing a lien, dividing assets, or injunctive relief (ordering a person to do something) to prevent irreparable damage. the rules of equity arose in england where the strict limitations of common law would not solve all problems, so the king set up courts of chancery (equity) to provide remedies through the royal power. most eastern states had courts of equity or chancery separate from courts of law, and others had parallel systems of law and equity with different procedural rules. now most states combine law and equity and treat both under “one cause of action.” 2) the net value of real property, determined by subtracting the amount of unpaid debts secured by (against) the property from the appraised value of the property.