Authorities Flashcards
Fixtures and Chattels > Steps
Step 1: State ‘if contract is silent on what is included in the sale, one must classify objects as either fixtures or chattels.’
Step 2: Define Fixture or Chattel
Step 3: Apply two tests to determine if fixture or chattel
Step 4: Cases where objects were categorised as fixtures or chattels
Fixtures and Chattels > 1. State
‘if contract is silent on what is included in the sale, one must classify objects as either fixtures or chattels.’
Fixtures and Chattels > 2. Define Fixture
Form a part of land must remain with the land when the land is sold on
Fixtures and Chattels > 2. Define Chattel
Removable objects that do not form part of land seller will be free to take them
Fixtures and Chattels > 3. Test One Authority
Berkley v Poulett
Fixtures and Chattels > 3. Test One
Berkley v Poulett
Degree and method of annexation
How firmly is the item attached to the land?
If attached to soil/securely affixed to land/would cause damage if removed –> Presumption of fixture.
Fixtures and Chattels > 3. Berkley v Poulett
Test One
Degree and method of annexation
How firmly is the item attached to the land?
If attached to soil/securely affixed to land/would cause damage if removed –> Presumption of fixture.
Fixtures and Chattels > 3. Two Tests
Test One: Degree and Method of Annexation (Berkley v Poulett)
Test Two: Object and Purpose of Annexation (D’Eyncourt)
Fixtures and Chattels > 3. Test Two > D’Eyncourt v Gregory and Leigh v Taylor
Object and Purpose of Annexation
Fixtures and Chattels > 3. Test Two > Object and Purpose of Annexation
D’Eyncourt v Gregory and Leigh v Taylor
Fixtures and Chattels > 3. Test Two > D’Eyncourt
If forms part of architectural design of garden/house –> fixture (even if free-standing/not firmly fixed)
Fixtures and Chattels > 3. Test Two > If forms part of architectural design of garden/house –> fixture (even if free-standing/not firmly fixed)
D’Eyncourt
Fixtures and Chattels > 3. Test Two > Leigh
Annexation is only way object can serve its function/purpose –> Fixture
Fixtures and Chattels > 3. Test Two > Annexation is only way object can serve its function/purpose –> Fixture
Leigh
Fixtures and Chattels > 4. Existing precedent > Statue, Chattel or Plinth?
Berkley v Poulett
Chattel, provided capable of being removed without causing damage and not part of the architectural design.
Fixtures and Chattels > 4. Existing precedent > Berkley v Poulett (S)
Statue: Chattel, provided capable of being removed without causing damage and not part of the architectural design
Fixtures and Chattels > 4. Existing precedent > Berkley v Poulett (P)
Plinth = fixture
Fixtures and Chattels > 4. Existing precedent > Plinth, Chattel or Fixture?
Fixture
Berkley v Poulett
Fixtures and Chattels > 4. Existing precedent > Botham v TSB Bank Plc
Light fittings, white goods, fitted carpets and curtains - all usually chattels
Fixtures and Chattels > 4. Existing precedent > Light fittings, white goods, fitted carpets and curtains - all usually chattels
Botham v TSB Bank Plc
Fixtures and Chattels > 4. Existing precedent > Elitestone Ltd v Morris and another
Bungalow and garden shed/ greenhouse: Chattels, provided capable of being easily dismantled and transferred around the garden.
Fixtures and Chattels > 4. Existing precedent > Bungalow and garden shed/ greenhouse: Chattels, provided capable of being easily dismantled and transferred around the garden.
Elitestone Ltd v Morris and another
Fixtures and Chattels > 4. Existing precedent > Bungalow and garden shed/ greenhouse, Fixtures or Chattels?
Elitestone Ltd v Morris and another
Chattels, provided capable of being easily dismantled and transferred around the garden.
Enforceability of Third Party Rights > Steps
Step 1: Identify the type of third-party right being claimed
Step 2: Is it capable of being legal?
Step 3: What are the formalities required? I.e. has it been validly created?
Step 4: Classify the interest – is it legal, equitable or statutory?
Step 5: Will it bind the buyer? Depends if it is the unregistered or registered system.
Step 6: Conclude: does third party interest bind the buyer?
Enforceability of Third Party Rights > 2. Legal? > s.1(2) or s.1(1)(b) LPA
Yes: Easements, mortgages, leases
Enforceability of Third Party Rights > 2. Legal? > Yes: Easements, mortgages, leases
s.1(2) or s.1(1)(b) LPA
Enforceability of Third Party Rights > 2. Legal? > s.1(3) LPA
No: Restrictive Covenants, estate contracts, options, beneficial interests, trusts, FLA
Enforceability of Third Party Rights > 2. Legal? > No: Restrictive Covenants, estate contracts, options, beneficial interests, trusts, FLA
s.1(3) LPA
Enforceability of Third Party Rights > 3. Formalities > Legal Easement > s.1(2)(a)
Must be equivalent to terms of years absolute/forever
Enforceability of Third Party Rights > 3. Formalities > Legal Easement > Must be equivalent to terms of years absolute/forever
s.1(2)(a)
Enforceability of Third Party Rights > 3. Formalities > Legal Easement > s.52(1) LPA
Must be by deed (see below)
Enforceability of Third Party Rights > 3. Formalities > Legal Easement > Must be by deed (see below)
s.52(1) LPA
Enforceability of Third Party Rights > 3. Formalities > Legal Lease > s.52(1) LPA
By Deed
Enforceability of Third Party Rights > 3. Formalities > Legal Lease > By Deed
s.52(1) LPA
Enforceability of Third Party Rights > 3. Formalities > Legal Lease > S.1 LP(MP)A
Must be signed, witnessed and delivered as a deed and say it is a deed
Enforceability of Third Party Rights > 3. Formalities > Legal Lease > Must be signed, witnessed and delivered as a deed and say it is a deed
S.1 LP(MP)A
Enforceability of Third Party Rights > 3. Formalities > Legal Lease > UNLESS – is a parol lease
Conditions: • Not exceeded three years • In possession; • At market rent; and • Without a fine
Enforceability of Third Party Rights > 3. Formalities > Legal Lease > s.2 LP(MP)A
Another option: a legal periodic tenancy can arise even where there is no deed. Or where s.2 LP(MP)A is not satisfied.
Enforceability of Third Party Rights > 3. Formalities > Legal Lease > Another option: a legal periodic tenancy can arise even where there is no deed. Or where s.2 LP(MP)A is not satisfied.
s.2 LP(MP)A
Enforceability of Third Party Rights > 3. Formalities > Legal Charge (Mortgage) > s.52(1) LPA 1925
By Deed
Enforceability of Third Party Rights > 3. Formalities > Legal Charge (Mortgage) > By Deed
s.52(1) LPA 1925
Enforceability of Third Party Rights > 3. Formalities > Legal Charge (Mortgage) > s.1 LP(MP)A
Must be signed, witnessed and delivered as a deed and say it is a deed
Enforceability of Third Party Rights > 3. Formalities > Legal Charge (Mortgage) > Must be signed, witnessed and delivered as a deed and say it is a deed
s.1 LP(MP)A
Enforceability of Third Party Rights > 3. Formalities > Statutory > s.30 Family Law Act 1996
- Be married/civil partnership
- Legal owner still alive
- Home must be/have been/will be the matrimonial home
Enforceability of Third Party Rights > 3. Formalities > Equitable > Restrictive Covenant > s.52(1)(a) LPA
Signed and in writing
Enforceability of Third Party Rights > 3. Formalities > Equitable > Restrictive Covenant > Signed and in writing
s.52(1)(a) LPA
Enforceability of Third Party Rights > 3. Formalities > Equitable > Equitable Lease > s.2LP(MP)A
(Because equitable lease is a type of estate contract)
• Signed
• In writing; and
• Contains all terms
Enforceability of Third Party Rights > 3. Formalities > Equitable > Equitable Lease > (Because equitable lease is a type of estate contract)
• Signed
• In writing; and
• Contains all terms
s.2LP(MP)A
Enforceability of Third Party Rights > 3. Formalities > Equitable > Equitable Easement > s.53(1)(a) LPA
- Signed; and
* In writing
Enforceability of Third Party Rights > 3. Formalities > Equitable > Equitable Easement >
• Signed; and
• In writing
s.53(1)(a) LPA
Enforceability of Third Party Rights > 3. Formalities > Equitable > Equitable Easement > s.2 LP(MP)A 1989
(Correct formalities for an estate contract – signed by both parties, writing, contains all agreed terms) Can be equitable if:
• Fails s.1(2)(a); or
• Fails s.52(1)
Enforceability of Third Party Rights > 3. Formalities > Equitable > Equitable Easement >
(Correct formalities for an estate contract – signed by both parties, writing, contains all agreed terms) Can be equitable if:
• Fails s.1(2)(a); or
• Fails s.52(1)
s.2 LP(MP)A 1989
Enforceability of Third Party Rights > 3. Formalities > Equitable > Estate Contracts examples
equitable lease; option to purchase land
Enforceability of Third Party Rights > 3. Formalities > Equitable > Estate Contracts > s.2 LP(MP)A
- Signed;
- In writing; and
- Contains all agreed terms
Enforceability of Third Party Rights > 3. Formalities > Equitable > Estate Contracts >
• Signed;
• In writing; and
• Contains all agreed terms
s.2 LP(MP)A
Enforceability of Third Party Rights > 3. Formalities > Equitable > Trusts > s.53(1)(b) LPA
Express Trust: In writing
Enforceability of Third Party Rights > 3. Formalities > Equitable > Trusts > Express Trust: In writing
s.53(1)(b) LPA
Enforceability of Third Party Rights > 3. Formalities > Equitable > Trusts > s.53(2) LPA
Implied Trust: arise without formalities
Enforceability of Third Party Rights > 3. Formalities > Equitable > Trusts > Implied Trust: arise without formalities
s.53(2) LPA
Enforceability of Third Party Rights > 5. Will it bind? > Note
Often the question will involve considering firstly whether the purchaser will be bound under the registered system, and then considering whether he would be bound if the land was unregistered.
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System > Steps
- Is the right registerable on the Land Charges Register? (in plymouth)
- If the right is registerable, depends if registered against owner’s name by date of completion of sale
- If right is not registerable depends if legal or equitable
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System - 1 > s.2 Land Charges Act 1972
- Is the right registerable on the Land Charges Register? (in plymouth)
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System - 1 > 1. Is the right registerable on the Land Charges Register? (in plymouth)
s.2 Land Charges Act 1972
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System - 1 > Class C(i) Land Charge
Puisne Mortgages
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System - 1 > Puisne Mortgages
Class C(i) Land Charge
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System - 1 > Class C(iv) Land Charge
Estate Contract
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System - 1 > Estate Contract
Class C(iv) Land Charge
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System - 1 > Class D(ii) Land Charge
Restrictive covenant. Unless:
o Contained in a lease; or
o Created before 1926
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System - 1 > Restrictive covenant. Unless:
o Contained in a lease; or
o Created before 1926
Class D(ii) Land Charge
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System - 1 > Class D(iii) Land Charge
Equitable Easement
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System - 1 > Equitable Easement
Class D(iii) Land Charge
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System - 1 > Class F Land Charge
s.30 Family Law Act 1996 (FLA) right to occupy the matrimonial home
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System - 1 > s.30 Family Law Act 1996 (FLA) right to occupy the matrimonial home
Class F Land Charge
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System > Step 2
If the right is registerable, depends if registered against owner’s name by date of completion of sale
• If registerable and registered –> binds buyer
• If registerable and NOT registered –> buyer takes free of interest (unless a gift)
Enforceability of Third Party Rights > 5. Will it bind? > Unregistered System > Step 3
If right is not registerable depends if legal or equitable
• If a trust interest –> binds buyer unless:
o He has overreached (s.2, s.27 LPA) see conditions below
o He’s equity’s darling
• If a non-trust interest –> binds buyer unless he is equity darling
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > Steps
- Classify the right as either a registerable disposition, an overriding interest, a trust interest or an interest affecting a registered estate (IARE)
- How to bind buyer
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > Categories of disposition
- Registerable Disposition
- Overriding Interest
- Trust Interest
- IARE (Interest affecting a registered estate)
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > Registerable Disposition > Examples
Sch 3 para 2 • Legal easements (expressly by deed) • Legal Charges (i.e. mortgages) • Legal Lease of seven years • Note: Even if not registered, check for Sch 3 para 2
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > Registerable Disposition
Sch 3 para 2 • Legal easements (expressly by deed) • Legal Charges (i.e. mortgages) • Legal Lease of seven years • Note: Even if not registered, check for Sch 3 para 2
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > Sch 3 LRA 2002, paras 1-3
Overriding interest (both legal and equitable interest)
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > Overriding interest (both legal and equitable interest)
Sch 3 LRA 2002, paras 1-3
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > Overriding Interest > Sch 3, para 1; if created before 13/10/03 Sch 12 para 12
Legal lease for 7 years or less
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > Overriding Interest > Legal lease for 7 years or less
Sch 3, para 1; if created before 13/10/03 Sch 12 para 12
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > Overriding Interest > Sch 3 para 3(1); if created before 13/10/03 Sch 12 para 9
Legal Easements (prescription/implied on sale of part), provided:
o Within actual knowledge of buyer;
o Obvious on a reasonably careful inspection of the land; or
o Used within the past year
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > Overriding Interest >
Legal Easements (prescription/implied on sale of part), provided:
o Within actual knowledge of buyer;
o Obvious on a reasonably careful inspection of the land; or
o Used within the past year
Sch 3 para 3(1); if created before 13/10/03 Sch 12 para 9
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > Trust Interest
Express trusts, implied trusts (resulting or constructive)
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > Trust Interest > s.33 LRA
Cannot be protected by notice; and,
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > Trust Interest > Cannot be protected by notice; and,
s.33 LRA
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > Trust Interest > s.40 LRA
May be recorded as a restriction in the proprietorship register at the Land Registry by date of registration of buyer
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > Trust Interest > May be recorded as a restriction in the proprietorship register at the Land Registry by date of registration of buyer
s.40 LRA
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 1. Classify > IARE
All other interests (most equitable interests)
• Estate contract
• Equitable easements
• Restrictive covenants; and
• FLA right (s.31 cannot be protected by Sch 3 para 2)
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 2. how to bind buyer > Registrable Disposition
s.29 LRA
Must be registered at Land Registry by date of registration of buyer as new owner only legal at this point (deed is insufficient)
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 2. how to bind buyer > s.29 LRA
Registrable Disposition:
Must be registered at Land Registry by date of registration of buyer as new owner only legal at this point (deed is insufficient)
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 2. how to bind buyer > Overriding Interest > General Rule
Must exist by date of registration of buyer as new owner – Need NOT be registered
BUT For Sch 3 para 2 the date of registration of the buyer as the new owner is the relevant date for assessing actual occupation
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 2. how to bind buyer > Overriding Interest > But..(Sch 3 para 2)
For Sch 3 para 2 the date of registration of the buyer as the new owner is the relevant date for assessing actual occupation
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 2. how to bind buyer > Trust Interest >
ss.2 and 27 LPA
Restriction will alert the buyer of the need to overreach (buyer pays all purchase monies to all trustees, being at least 2 in number)
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 2. how to bind buyer > Trust Interest > Restriction will alert the buyer of the need to overreach (buyer pays all purchase monies to all trustees, being at least 2 in number)
ss.2 and 27 LPA
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 2. how to bind buyer > Trust Interest
- If the buyer fails to overreach they will be prevented from registering the purchase
- Whether or not there is a restriction recorded, the trust interest might be overriding under Sch 3 para 2 and therefore the buyer must overreach to purchase free of any interest
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 2. how to bind buyer > IARE’s > s.29 LPA
Must be registered on charges register at Land Registry by date of registration of buyer
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 2. how to bind buyer > IARE’s > Must be registered on charges register at Land Registry by date of registration of buyer
s.29 LPA
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 2. how to bind buyer > Sch 12 para 9
Easements that were overriding under old law continue to override
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 2. how to bind buyer > Easements that were overriding under old law continue to override
Sch 12 para 9
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 2. how to bind buyer > Sch 12 para 12
Legal leases for 21 years or less granted before 12/10/2003 continue to override.
Enforceability of Third Party Rights > 5. Will it bind? > The Registered System > 2. how to bind buyer > Legal leases for 21 years or less granted before 12/10/2003 continue to override.
Sch 12 para 12
Land Law Key Concepts
Equity’s Darling, actual occupation, overreaching and the registers
Equity’s Darling
- Bona Fide (acting in good faith, not fraudulent
- Purchaser (receives property other than by operation of law – i.e. not intestacy rules or bankruptcy)
- of the legal estate;
- For value (have given consideration)
- Without notice. Hard to prove, but can be:
• Actual (s.198 LPA)
• Imputed (solicitor/agent had actual/constructive knowledge); or
• Constructive –
o Would have come to notice if such inquiries/inspections had been made as ought reasonably to have been made (s.199(1) LPA)
o Presence wold have been apparent from inspection (Kingsnorth Finance Co Ltd v Tizard)
Equity’s Darling > Summary
Bona Fide purchaser of the legal estate; for value without notice
Equity’s Darling > Without notice: includes actual
s.198 LPA
Equity’s Darling > s.198 LPA
Without notice: includes actual
Equity’s Darling > s.199(1) LPA
Would have come to notice if such inquiries/inspections had been made as ought reasonably to have been made
Equity’s Darling > Would have come to notice if such inquiries/inspections had been made as ought reasonably to have been made
s.199(1) LPA
Equity’s Darling > Kingsnorth Finance Co Ltd v Tizard
Presence wold have been apparent from inspection
Equity’s Darling > Presence wold have been apparent from inspection
Kingsnorth Finance Co Ltd v Tizard
Actual Occupation
Must be:
- Obvious on a reasonably careful inspection of land, or buyer knew of it; or
- Person disclosed the right if enquiries were made of it when he could reasonably be expected to do so.
Actual Occupation will not protect?
An FLA right (s.31(10)(b) FLA); and, An easement (because the dominant owner is not in actual occupation of the land affected
Actual Occupation > Case Law > Thomas v Clydesdale bank Plc
For actual occupation to be ‘obvious on a reasonably careful inspection’, there must be ‘visible signs of occupation, which have to be obvious on inspection.’
Actual Occupation > Case Law >
For actual occupation to be ‘obvious on a reasonably careful inspection’, there must be ‘visible signs of occupation, which have to be obvious on inspection.’
Thomas v Clydesdale bank Plc
Actual Occupation > Case Law > Mallory Enterprises v Cheshire Homes
Fencing may suffice on derelict land
Actual Occupation > Case Law > Fencing may suffice on derelict land
Mallory Enterprises v Cheshire Homes
Actual Occupation > Case Law > William’s & Glynn’s Bank v Boland
Actual Occupation necessitates ‘physical presence on the land’.
Actual Occupation > Case Law > Actual Occupation necessitates ‘physical presence on the land’.
William’s & Glynn’s Bank v Boland
Actual Occupation > Case Law > Lloyd’s Bank Plc v Rosser
Actual Occupation can be visiting the property regularly to supervise renovation work
Actual Occupation > Case Law > Actual Occupation can be visiting the property regularly to supervise renovation work
Lloyd’s Bank Plc v Rosser
Actual Occupation > Case Law > Kling v Keston Properties
Actual Occupation can be a car parked regularly in the garage
Actual Occupation > Case Law > Actual Occupation can be a car parked regularly in the garage
Kling v Keston Properties
Actual Occupation > Case Law > Chhokar v Chhokar
A temporary absence does not preclude actual occupation
Actual Occupation > Case Law > A temporary absence does not preclude actual occupation
Chhokar v Chhokar
Actual Occupation > Case Law > Abbey National Building Society v Cann
Preparatory steps leading to actual occupation are not actual occupation. Some degree of permanence and continuity is needed (Lord Oliver)
Actual Occupation > Case Law > Preparatory steps leading to actual occupation are not actual occupation. Some degree of permanence and continuity is needed (Lord Oliver)
Abbey National Building Society v Cann
Actual Occupation > Case Law > Strand Securities v Caswell
An agent can have actual occupation for you; a relative cannot
Actual Occupation > Case Law > An agent can have actual occupation for you; a relative cannot
Strand Securities v Caswell
Actual Occupation > Case Law > Link Lending v Bustard
Can be in actual occupation if your possessions are still in the property and you have aspirations to return
Actual Occupation > Case Law > Can be in actual occupation if your possessions are still in the property and you have aspirations to return
Link Lending v Bustard
Actual Occupation > Case Law > Thompson v Foy
Cannot be actual occupation if you have no aspiration to return
Actual Occupation > Case Law > Cannot be actual occupation if you have no aspiration to return
Thompson v Foy
Actual Occupation > Case Law > Hypo Mortgage Services v Robinson
A minor cannot be in actual occupation, they are classed as shadows of their parents
Actual Occupation > Case Law > A minor cannot be in actual occupation, they are classed as shadows of their parents
Hypo Mortgage Services v Robinson
Actual Occupation > Case Law > Lloyd’s Bank v Rosset
(A minor cannot b in actual occupation) unless they are there as their ‘agent’
Actual Occupation > Case Law >
(A minor cannot b in actual occupation) unless they are there as their ‘agent’
Lloyd’s Bank v Rosset
Actual Occupation > Case Law > AIB Group (UK) Plc v Turner
Ratio: son’s occupation is not parent’s occupation
Obiter: having a second home does not mean first home ceases to be a home
Actual Occupation > Case Law > Ratio: son’s occupation is not parent’s occupation
Obiter: having a second home does not mean first home ceases to be a home
AIB Group (UK) Plc v Turner
Actual Occupation > Case Law > AIB Group (UK) Plc v Turner > Ratio
son’s occupation is not parent’s occupation
Actual Occupation > Case Law > AIB Group (UK) Plc v Turner > Obiter
having a second home does not mean first home ceases to be a home
Overreaching
ss.2, 27 LPA
Overreaching > City of London Building Society v Flegg
Dissolving of an equitable right under a trust in a property can occur where:
- Buyer purchasing legal estate;
- Pays monies to all trustees; and
- Trustees are at least two in number, or a trust corporation
Overreaching > Dissolving of an equitable right under a trust in a property can occur where:
- Buyer purchasing legal estate;
- Pays monies to all trustees; and
- Trustees are at least two in number, or a trust corporation
City of London Building Society v Flegg
ss.2, 27 LPA
Overreaching
Land Law Key Concepts > Points to Note > s.4 LRA 2002
Some transactions require compulsory registration at the land Registry, e.g. the sale, gift, mortgage or assent of a freehold/leasehold which has more than seven years left to run
Land Law Key Concepts > Points to Note > Some transactions require compulsory registration at the land Registry, e.g. the sale, gift, mortgage or assent of a freehold/leasehold which has more than seven years left to run
s.4 LRA 2002
Land Law Key Concepts > Points to Note > The property register
Describes the property and the legal estate held in it
Land Law Key Concepts > Points to Note > Describes the property and the legal estate held in it
The property register
Land Law Key Concepts > Points to Note > The charges register
Third party interests that burden the land
Land Law Key Concepts > Points to Note > Third party interests that burden the land
The charges register
Land Law Key Concepts > Points to Note > The proprietorship register
Describes nature of title held (e.g. absolute), details of owners including restrictions on their power to deal with property (e.g. trust interest).
Land Law Key Concepts > Points to Note > Describes nature of title held (e.g. absolute), details of owners including restrictions on their power to deal with property (e.g. trust interest).
The proprietorship register
Land Law Key Concepts > Points to Note > What Does not appear on the register?
- Leasehold covenants; and
* Overriding interests (need only exist, not be registered)
Trusts of Land and Co-ownership > Steps
Step One: State – ‘This question involves the co-ownership of [insert name of property] by [insert names of purchasing parties]. When land is co-owned, it gives rise to a statutory trust of land (s.36 Law of Property Act 1925)’
Step Two: Explain how the LEGAL TITLE to the land is held on the purchase of the property
Step Three: Explain how the EQUITABLE INTEREST in the land is held on the purchase of the property
Step Four: Discuss the effect of incidents/changing arrangements described (deaths, sales, mortgages, etc.) on the LEGAL TITLE
Step Five: Discuss the effect of incidents/changing arrangements described (deaths, sales, mortgages, etc.) on the EQUITABLE INTEREST
Step Six: Conclude as to how both the legal title and the equitable interest are held (joint tenants or tenants in common, and in what proportions
Step Seven: If question requires, explain how DISPUTE BETWEEN TRUSTEES AND BENEFICIARIES over whether to sell the property might be resolved.
Step Eight: If the question specifies, explain whether any potential buyer will be bound by the equitable interests that exist in the property.
Trusts of Land and Co-ownership > Step 1 - State?
‘This question involves the co-ownership of [insert name of property] by [insert names of purchasing parties]. When land is co-owned, it gives rise to a statutory trust of land (s.36 Law of Property Act 1925)’
Trusts of Land and Co-ownership > Step 1 - State > s.36 Law of Property Act 1925
When land is co-owned, it gives rise to a statutory trust of land
Trusts of Land and Co-ownership > Step 1 - State > When land is co-owned, it gives rise to a statutory trust of land
s.36 Law of Property Act 1925
Trusts of Land and Co-ownership > 2. Legal title > s.1(6) LPA 1925
Legal Title is ALWAYS held as JOINT TENANCY
Trusts of Land and Co-ownership > 2. Legal title > Legal Title is ALWAYS held as JOINT TENANCY
s.1(6) LPA 1925
Trusts of Land and Co-ownership > 2. Legal title > s.34(2) LPA 1925
A maximum of FOUR people may hold the legal estate jointly (first four on the deed)
But remember that a co-owner must be 18 in order to hold a legal estate in land
Trusts of Land and Co-ownership > 2. Legal title > A maximum of FOUR people may hold the legal estate jointly (first four on the deed)
s.34(2) LPA 1925
Trusts of Land and Co-ownership > 3. Equitable Interest > 2 types
JOINT TENANCY; or TENANCY IN COMMON
Trusts of Land and Co-ownership > 3. Equitable Interest > Joint Tenancy
- Co-owners have identical interests in the property, their interests being of non-defined proportions;
- Cannot dispose of legal joint tenancy in will, joint tenancies will run on survivorship (Gould v Kemp)
Trusts of Land and Co-ownership > 3. Equitable Interest >
• Co-owners have identical interests in the property, their interests being of non-defined proportions;
• Cannot dispose of legal joint tenancy in will, joint tenancies will run on survivorship
(Gould v Kemp)
Joint Tenancy
Trusts of Land and Co-ownership > 3. Equitable Interest > Joint Tenancy > Gould v Kemp
• Cannot dispose of legal joint tenancy in will, joint tenancies will run on survivorship
Trusts of Land and Co-ownership > 3. Equitable Interest > Joint Tenancy >
• Cannot dispose of legal joint tenancy in will, joint tenancies will run on survivorship
Gould v Kemp
Trusts of Land and Co-ownership > 3. Equitable Interest > Tenancy In Common
- Co-owners have separate, but as yet undivided shares in the property, each for a specific percentage in ownership of the property; and
- A Co-owner’s share can be disposed of in a will
Trusts of Land and Co-ownership > 3. Equitable Interest >
• Co-owners have separate, but as yet undivided shares in the property, each for a specific percentage in ownership of the property; and
• A Co-owner’s share can be disposed of in a will
Tenancy In Common
Trusts of Land and Co-ownership > 3. Equitable Interest > Tests
- Are the FOUR UNITIES PRESENT?
- Express Statement
- Words of Severance
- Presumptions
Trusts of Land and Co-ownership > 3. Equitable Interest > 1. Are the FOUR UNITIES PRESENT? > PITT
Possession, Interest, Title, Time
Unity of TIME
Unity of TITLE
Unity of INTEREST
Unity of POSSESSION
Trusts of Land and Co-ownership > 3. Equitable Interest > 1. Are the FOUR UNITIES PRESENT? > Unity of TIME
Did the co-owners acquire their interests in the property at the same time?
Trusts of Land and Co-ownership > 3. Equitable Interest > 1. Are the FOUR UNITIES PRESENT? > Unity of TITLE
Did the Co-owners acquire their interests in the property under the same document?
Trusts of Land and Co-ownership > 3. Equitable Interest > 1. Are the FOUR UNITIES PRESENT? > Unity of INTEREST
Are the Co-owners’ interests in the property of the SAME NATURE AND DURATION?
Trusts of Land and Co-ownership > 3. Equitable Interest > 1. Are the FOUR UNITIES PRESENT? > Unity of POSSESSION
Are the co-owners each equally entitled to use and occupy the WHOLE PREMISES?
Trusts of Land and Co-ownership > 3. Equitable Interest > 1. Are the FOUR UNITIES PRESENT? > Effect of test
If all unities are present, the equitable interest MAY be held as a JOINT TENANCY (proceed to tests 2, 3 and 4 to confirm)
If any one of the unities are missing, it CANNOT be a JOINT TENANCY
Trusts of Land and Co-ownership > 3. Equitable Interest > 2. Express Statement > Goodman v Gallant
Does the transfer document contain EXPRESS STATEMENT as to how the equitable interest is held? –> if it does, it is CONCLUSIVE.
Trusts of Land and Co-ownership > 3. Equitable Interest > 2. Express Statement > Does the transfer document contain EXPRESS STATEMENT as to how the equitable interest is held? –> if it does, it is CONCLUSIVE.
Goodman v Gallant
Trusts of Land and Co-ownership > 3. Equitable Interest > 3. Words of Severance > Robertson v Fraser
Are there WORDS OF SEVERANCE in the transfer document? E.g. to be held equally/in equal shares –> if so, equitable interest will be held as TENANCY IN COMMON
Trusts of Land and Co-ownership > 3. Equitable Interest > 3. Words of Severance > Are there WORDS OF SEVERANCE in the transfer document? E.g. to be held equally/in equal shares if so, equitable interest will be held as TENANCY IN COMMON
Robertson v Fraser
Trusts of Land and Co-ownership > 3. Equitable Interest > 3. Words of Severance
Are there WORDS OF SEVERANCE in the transfer document? E.g. to be held equally/in equal shares if so, equitable interest will be held as TENANCY IN COMMON
(Robertson v Fraser)
Trusts of Land and Co-ownership > 3. Equitable Interest > 4. Presumptions
Does EQUITY PRESUME A TENANCY IN COMMON? Equity will do so where:
• The buyers each contributed different amounts to the purchase price (Lake v Gibson); or
• The property was bought on behalf of a business
Trusts of Land and Co-ownership > 3. Equitable Interest > 4. Presumptions > Lake v Gibson
• The buyers each contributed different amounts to the purchase price
Trusts of Land and Co-ownership > 3. Equitable Interest > 4. Presumptions > • The buyers each contributed different amounts to the purchase price
Lake v Gibson
Trusts of Land and Co-ownership > 4. Effect on Legal Title > s.36(2) LPA 1925
Severance of the Legal Title is PROHIBITED. Therefore, Legal Title will continue to be held as JOINT TENANCY.
Trusts of Land and Co-ownership > 4. Effect on Legal Title > Severance of the Legal Title is PROHIBITED. Therefore, Legal Title will continue to be held as JOINT TENANCY.
s.36(2) LPA 1925
Trusts of Land and Co-ownership > 4. Effect on Legal Title > Under the RIGHT OF SURVIVORSHIP
On the death of a Trustee (one of co-owners of the property), legal title passes onto other co-trustees
Trusts of Land and Co-ownership > 4. Effect on Legal Title > On the death of a Trustee (one of co-owners of the property), legal title passes onto other co-trustees
Under the RIGHT OF SURVIVORSHIP
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest
The equitable interest may be SEVERED (i.e. ownership of the equitable interest as a joint tenancy ends, and co-owners become tenants in common, owning separate shares in the property), by:
- Notice
- Alienation
- Mutual Agreement or A course of Dealings
- Homicide
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 1.Notice > s.36(2) LPA 1925
To be effective, any severance must comply with s.36(2) LPA 1925
• Be IN WRITING but needs to:
o Show CORRECT INTENTION, i.e. must show intention to sever immediately, and not at some later date
o Be correctly SERVED
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 1.Notice >
• Be IN WRITING but needs to:
o Show CORRECT INTENTION, i.e. must show intention to sever immediately, and not at some later date
o Be correctly SERVED
To be effective, any severance must comply with s.36(2) LPA 1925
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 1.Notice > Harris v Goddard
o Show CORRECT INTENTION, i.e. must show intention to sever immediately, and not at some later date
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 1.Notice > o Show CORRECT INTENTION, i.e. must show intention to sever immediately, and not at some later date
Harris v Goddard
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 1.Notice > Notice will be correctly served if: > s.196(3) LPA 1925
• Notice is left at the last known abode/place of business of person to be served
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 1.Notice > Notice will be correctly served if: >
• Notice is left at the last known abode/place of business of person to be served
s.196(3) LPA 1925
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 1.Notice > Notice will be correctly served if: > Kinch v Bullard
[Last known abode/business]
o (If delivered here, notice will be effective even if addressee does not actually receive the notice)
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 1.Notice > Notice will be correctly served if: >
[Last known abode/business]
o (If delivered here, notice will be effective even if addressee does not actually receive the notice)
Kinch v Bullard
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 1.Notice > Notice will be correctly served if: > s.196(4) LPA 1925
• Notice is sent by registered post to person to be served
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 1.Notice > Notice will be correctly served if: > • Notice is sent by registered post to person to be served
s.196(4) LPA 1925
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 1.Notice > Notice will be correctly served if: > Re 88 Berkley Road NW9
[Registered Post]
o Effective, even if not actually ‘received’, provided letter is not sent back undelivered
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 1.Notice > Notice will be correctly served if: >
[Registered Post]
o Effective, even if not actually ‘received’, provided letter is not sent back undelivered
Re 88 Berkley Road NW9
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 1.Notice >
Notice will be correctly served if:
• Notice is left at the last known abode/place of business of person to be served (s.196(3) LPA 1925)
o (If delivered here, notice will be effective even if addressee does not actually receive the notice) (Kinch v Bullard) OR
• Notice is sent by registered post to person to be served (s.196(4) LPA 1925)
o Effective, even if not actually ‘received’, provided letter is not sent back undelivered (Re 88 Berkley Road NW9)
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 2. Alienation
- Sale, gift, mortgage or bankruptcy
* Any severance by alienation must be in compliance with s.53(1)(c) LPA 1925 – evidenced in signed writing
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 3. MUTUAL AGREEMENT
Where joint tenants expressly agree to sever the equitable interest
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 3. MUTUAL AGREEMENT > Burgess v Rawnsley
Oral agreement is sufficient to show common intention necessary to sever a joint tenancy
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 3. MUTUAL AGREEMENT > Oral agreement is sufficient to show common intention necessary to sever a joint tenancy
Burgess v Rawnsley
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 3. COURSE OF DEALINGS
Where parties act in a way that suggests they intend the shares to be held as tenancy in common
Trusts of Land and Co-ownership > 5. Effect on Equitable Interest > 3. COURSE OF DEALINGS > Morley v Bird
e.g. Where bought for business.
This cannot be a unilateral statement by one party alone.