BPP Study Notes Ch 2: Freehold

Question 1

What does each word in ‘fee simple absolute in possession’ mean?

Answer 1

fee = inheritable
simple = inheritable by any heir
absolute = unconditional
in possession = current right to use

Question 2

What two formalities are required for the transfer of a freehold title? What statutes govern this?

Answer 2

• a deed - s52(1) LPA 1925

- new owner must be registered on the national land register - Land Registration Act 2002

Question 3

What are the stages of a sale of freehold?

Answer 3

• exchange of contracts
• completion: seller transfers the property to the buyer. Unregistered land = “conveyance”. registered land = “transfer”
• registration

Question 4

At what point does legal title to registered and unregistered land transfer?

Answer 4

• registered land: when the new owner is registered

- unregistered land: after completion.

Question 5

From what date are contracts for the sale of land treated differently?

Answer 5

contracts on or after 27th September 1989

Question 6

What requirements do contracts made on the 26th September 1989 need to meet?

Answer 6

• no formal requirements for validity but need to meet three conditions to be enforceable:
  -contract is in writing and signed by the party against whom it is enforced
  or
  -existing written record of an oral contract in the form of a memo or note which has been signed by the party against whom it is enforced
  or
  -contract is oral but the party seeking to enforce it has done some act of ‘part performace’ ie conduct demonstrating existence of contract

Question 7

What case gives examples of written evidence for an oral contract?

Answer 7

Davies v Sweet

Question 8

What cases give evidence of what part performance could constitute?

Answer 8

Bowers v Cator (buyer taking possession of the land with the seller’s consent)
Broughton v Snook (buyer making improvements on the land)

Question 9

What statute governs contracts made on or after 27th September 1989?

Answer 9

S 2 Law of Property (Miscellaneous Provisions) Act 1989

- ie s2 LP(MP)A 1989

Question 10

Under s2 LP(MP)A 1989 what requirements are there for a contract made after 27/9/1989 to be valid?

Answer 10

• contract must be in writing, and
• it must contain all the agreed terms, and
• it must be signed by both parties

Question 11

What statute governs contracts made on or before 26th September 1989?

Answer 11

s40 LPA 1925

Question 12

In what 4 circumstances are contracts exempt from the formality requirements of s2 LP(MP)A 1989?

Answer 12

• creation of resulting, implied or constructive trusts
• contracts made at public auctions
• certain contracts regulated by the Financial Services & Markets Act 2000
• under 3-year lease contracts which take effect immediately and are at the best rent reasonably obtainable

Question 13

What remedies are there for breach of contract?

Answer 13

• damages for the loss the claimant has suffered as a result of the breach
• injunction (to prevent a breach of contract)
• specific performance (to force the carrying out of a promise)

Question 14

What is the proprietary effect of exchanging contracts?

Answer 14

• it turns the buyer into the equitable owner

- seller still has legal title until completion/registration

Question 15

What are the formalities for completion and what gives them authority?

Answer 15

• a legal estate must be conveyed or created by deed: s52(1) LPA 1925
• requirements for a valid deed are set out in s1 LP(MP)A 1989

Question 16

What are the requirements for a valid deed?

Answer 16

• must say on its face it is intended to be a deed by its author

Question 17

How is a valid deed executed?

Answer 17

• it has been attested by a witness and delivered as a deed.
• attested = signed by a witness to the signature
• delivered = acknowledgement that the parties involved intend to be formally bound

Question 18

What exceptions are there to the requirement for a deed?

Answer 18

• ‘operation of law’ ie where property automatically vests in another
• eg upon bankruptcy or death where your estate vests in another to disburse

Question 19

What happens if a new owner does not register their land? How long do they have?

Answer 19

if they have not registered their purchase within 2 months of completion then the legal title reverts to the seller.

Question 20

What is the primary purpose of land registry?

Answer 20

simplify the covneyancing system by removing the need to investigate title deeds

Question 21

What statute governs the registration of land?

Answer 21

Land Registration Act 2002

Question 22

What act sets out a duty to register land?

Answer 22

s6 LRA 2002

Question 23

What act sets out the punishment for not registering land in the appropriate timescale? What is this punishment?

Answer 23

s7 RLA 2002

the transfer or grant of legal estate becomes void and reverts to previous owner on a bare trust for the new owner.

Question 24

How can title pass by adverse possession? How can the owner object?

Answer 24

if a person can show they have been in adverse possession (ie physical control and intention to possess) for 12 years. When the squatter makes an application to be registered as proprietor notice is given to the true owner who can defeat it easily.