2. Estates and Interests in Land

Question 1

What are the two estates under the Law of Property Act 1925?

Answer 1

1. Freehold estate (fee simple absolute in possession)
2. Leasehold estate (term of years absolute)

Question 2

In terms of duration, what is the difference between a freehold and leasehold estate?

Answer 2

Freehold is for an uncertain / indefinite duration. Leasehold is for a fixed duration.

Question 3

Separate from the two legal estates do (1) legal interests or (2) equitable interests confer ownership of land?

Answer 3

No, they concern rights over land the legal estate of which is held by another

Question 4

What are the three types of legal interest?

Answer 4

1. Mortgage
2. Easements
3. Right of entry

Must be created by deed and registered

Question 5

What is a common situation in which an equitable interest may arise by accident?

Answer 5

When parties attempt to create a legal interest by deed, but the formalities for a deed are not met.

• Formalities for valid land contract are met and specific performance is an available remedy.
• Only binding on purchasing third parties if validly protected by registration.

Question 6

What equitable interests must be protected by entry of notice in the charges register?

Answer 6

1. Restrictive covenants
2. Estate contracts
3. Easements granted for an uncertain term

Question 7

What formalities must is a land contract comply with to be valid?

Answer 7

1. In writing
2. Incorporate all agreed terms
3. Be signed by all the parties

Question 8

When is a deed required?

Answer 8

• To transfer legal ownership on sale
• Where lease is granted for term of more than 3 years
• Legal easement
• Legal mortgage
• Profits a Prendre

Question 9

What three things are required for a deed to be valid?

Answer 9

1. In writing
2. Clearly intended to be a deed
3. Duly executed as a deed

Question 10

What are the two requirements for a deed to be duly executed?

Answer 10

1. Signed in the presence of an attesting witness
2. Delivered (says delivered/ dated)

Question 11

When is a deed delivered?

Answer 11

When the party expresses an intention to be bound by the deed

Question 12

What is required for a land contract’s variation be correctly executed?

Answer 12

need to comply with the LP(MP)A 1989 s.2 formalities.

Question 13

What proprietary effect does an estate contract have?

Answer 13

creates an equitable interest, which counts specific perfomance as one of its available remedies (ie. ability to exercise option to purchase)
- only be recognized as such if claimant has clean hands.
- comply with section 2 of LP(MP) formalities

Question 14

What interests need to be entered unto the register to bind successors in title, and how are they protected?

Answer 14

Notice - appears on charges register.
- Used to protect easements/profits, equitable leases, restrictive covenants, home rights, and estate contracts.
- Can be entered into register without consent of the registered owner.

Restriction - protects trusts of land in proprietorship register.
- flags that overreaching might need to take place in order for a buyer to buy the land unemcumbered.

Question 15

What are interests in land will override on first registration of the land?

Answer 15

• legal leases of 7 years or less in duration;
• interest belonging to person in actual occupation
• legal easement or profit
• local land charge (unreg. land register)

Question 16

What are overriding interests?

Answer 16

Interest that bind purchasers without being protected by entry on the register.

• Implied legal easements
• Leases with a term of 7 years or less
• Interest of persons in actual occupation

Question 17

When does possessory title arise?

Answer 17

Arises either where:
2) the applicant’s title is based on adverse possession; OR
1) title cannot be proven because the title deeds have been lost or destroyed

Question 18

What is good leasehold title?

Answer 18

when the ‘superior’ freehold title cannot be guranteed, so the Registry cannot grant absolute leasehold title.

Question 19

What role does the doctrine of notice serve?

Answer 19

determines whether a buyer/mortgagee will be bound by:
- an overriding interest that has not been successfully overreached;
- restrictive covenants or equitable easements entered into pre-January 1st 1926.

Question 20

What effect does the doctrine of notice have?

Answer 20

equitable interest over land, which are protected without registration, will biding anyone except bona fide 3rd party purchaser of a legal estate for value.

• applies to pre-1926 - equitable leases and restrictive covenants
• applies to beneficial interest behind 1 trustee trust (aka where no overreaching)

Question 21

What interests in unregistered land are capable of being legal interests?

Answer 21

Same as registered land - right of entry, mortgage (exception - puisne mortgage), easement, rentcharges, profit a prendre

both post and pre-1926 - bind the world

Question 22

What interests in unregistered land must be protected as a Land Charge at the Land Charges Registry?

Answer 22

Estate contract - Class C (IV)
Puisne mortgage - class C(I)
* Restrictive Covenant - class D(II)
* Equitable easement (aka for uncertain term) - class D (III)
* Home rights of occupation in the matrimonial/civil partnership home - class F
* Equitable mortgage C(iii)

Question 23

What interest in unregistered land cannot be protected?

Answer 23

interest in a trust of land

Question 24

What are the three ways notice can be established?

Answer 24

• Actual - purchaser actually has knowledge of equitable interest.
• Imputed- notice received by buyer’s agent is imputed to the them.
• Constructive - reasonable to make further enquiries.

Question 25

Who will the doctrine of notice always bind?

Answer 25

donee (someone who is gifted or inherits the estate), even if they do not have notice of the interest.

Question 26

When does a bare trust arise and what effect does that have?

Answer 26

Where buyer fails to register as the new proprietor, the transfer is void and the seller holds the land for its benefit on a bare trust.

• negative implications if the new owner wishes to sell the property in any way.