All Flashcards
Equity intervenes in 2 ways:
Recognising new proprietary rights: equitable proprietary rights
Equitable remedies
4 new proprietary rights recognised by equity:
Beneficial interest under trust
Equitable right to redeem
Restrictive convenants (negative ones)
Estate contracts
4 equitable remedies:
Specific performance
Injunction
Rescission
Rectification
Nature of equitable remedies:
Discretionary: equity underlined wth maxims eg he who comes to equity must come with clean hands
Nature of common law remedies:
Arise as of right
Failure to comply with equitable remedy:
Contempt of court
Interests capable of being legal listed under:
S 1(2) LPA 1925:
(a) : easement/right/privilege
(c) : charge by way of legal mortgage
(e) : rights of entry
Estates capable of being legal listed under:
S 1(1) LPA 1925:
a) : fee simply absolute in possession (freehold
(b) : term of years absolute (leasehold)
3 potential formalities for grant of a legal interest:
Grantor must have capacity (can’t grant more than you have yourself)
Must be created by deed (s 52 LPA 1925)
If registered land: disposition must be registered if:
- express grant of easement
- grant of legal charge
- express grant of rent charge / right of entry
Formalities for deed:
S 1 LP(MP)A 1989: Clear on face it is deed Signed by grantor Delivered Witnessed
When failed attempt to grant legal interest, equity may recognise contract to create interest if:
Contract valid
Contract capable of specific performance
Valid contract
Compliant with s 2 LP(MP)A 1989:
In writing
Containing all terms
Signed by both parties
Equity recognised agreement to grant interest in the future gives grantee an equitable interest by application of the maxim
Equity views as done that which ought to be done
When creating estate/interest not listed in s 1(1) or (2) LPA 1925: formalities must be met depending on interest. Failure:
Right remains merely personal
4 main changes LRA 2002 made when repealing LRA 1925:
- more interests require registration for protection
- more titles require registration
- AP watered down
- system devised to pave way for e-conveyancing
Principles of LRA 2002:
Mirror
Curtain
Insurance
Sections of register:
Proprietorship
Property
Charges
Proprietorship register:
Names registered proprietor, title & any restrictions
Property register
Describes land, nature of estate registered & third party interests benefitting land
Charges register:
Notices of interests burdening the land
Substantively registrable estates:
S 2 LRA 2002:
Freehold
Leasehold 7+
Voluntary substantive registration for first time
S 3 LRA 2002
Financial incentives
Events triggering compulsory substantive registration of freehold / leasehold 7+:
S 4(1) LRA 2002
- Transfer/grant of freehold/leasehold 7+
- first protected legal mortgage -> triggers registration of estate charged
Dispositions of registered land that must be registered:
S 27(2) LRA 2002
Transfer of registered estate
Grant of leasehold 7+ out of registered estate
Failure: transfer does not operate at law (s 27(1) LRA 2002)
Failure to substantively register estate on triggering event:
S 7 LRA 2002:
- transfer of freehold/leasehold 7+: legal title reverts to transferor who holds on trust for transferee
- grant of leasehold 7+ / mortgage: contract to grant that interest
Why common law is ill equipped at resolving disputes so need for equity to intervene:
Failed to recognise rights were fair and just
Damages inadequate
Procedure complicated -> burdened with formality so delay
When creating interest with legal capacity over registered land, must be registered
S 38 LRA 2002: in charges register as notice
Express grant of easement
Grant of legal charge
Express grant of rent charge / right of way
Interests unprotectable by notice:
S 33 LRA 2002:
Leases 3-
Interests under trust
Restrictive covenants between landlord and tenant
Consequences of failing to enter a notice:
If valuable consideration given for disposition:
Notice does not bind
If no valuable consideration: donee takes land subject to all interests pre-dating disposition (Halifax v Curry)
What is a restriction?
Entered on proprietorship register. Regulates way registered proprietor can deal with property by laying down specific procedure. If not followed, registrar will refuse to register new disponee
Main use of restrictions:
To protect beneficial interests under a trust. Requires purchaser to pay purchase monies to at least 2 trustees -> overreaching
Consequences of failing to enter restriction when own beneficial interest under trust:
1 trustee paid: no overreaching so whether beneficial interest binds depends on whether overrides under Sch 3 para 2
2 trustees paid anyway: overreached so not binding
Sch 1 LRA 2002:
Interests that override 1st registration (so automatically bind when unregistered title becomes registered):
Para 1: legal leases 7-
Para 2: interests of person in actual occupation
Para 3: legal easements / profits
Sch 3 LRA 2002:
Interests that override subsequent transactions of registered land
Para 1 Sch 3 LRA 2002:
Legal leases 7-
Para 2 Sch 3 LRA 2002:
Interest binding if holder can establish:
- interest is proprietary
- interest existed at time of disposition
- in actual occupation
Para 3 Sch 3 LRA 2002:
Impliedly created legal easements, provided either:
- obvious on reasonably careful inspection
- disponee has actual knowledge of existence
- interest exercised in year immediately preceding disposition
Actual occupation for purposes of Sch 3 para 2 LRA 2002 must be:
- obvious on reasonably careful inspection of land (para 2(c)(i))
- purchaser had actual knowledge of it (para 2(c)(ii))
By “obvious on reasonably careful inspection of the land”, para 2 Sch 3 LRA 2002 requires
Visible signs that must be obvious (Thomas v Clydesdale)
If failed to disclose actual occupation on enquiry (and would have been reasonable to disclose):
Interest not binding under para 2 Sch 3 LRA 2002 (para 2(b))
6 features of actual occupation:
- can exist despite temp a sense so long as justifiable and short (Chhokar v Chhokar)
- persistent intention to return: leaving furniture and personal belongings, regularly visiting and paying outgoings (Linklending v Bustard)
- nature and condition of land (Lloyds Bank v Rosset)
- can be through agent (Strand Securities v Caswell)
- actual occupation must be at time of transfer, not registration (Abbey National BS v Cann)
- interest only binding to extent of land actually occupied (reversing Ferrishurst v Wallcite)
