Essentail Basics, Formalities And Co-ownership

Question 1

What is real property vs personal property?

Answer 1

Real property - all property rights relating land are real property, except leases

Personal property - all types of property (including leases)

Question 2

What are fixtures vs chattels ?

Answer 2

Fixtures are included in the land and chattels are personal property - depends on degree of annexation and purpose of annexation

Question 3

What is a legal estate ?

Answer 3

To create or transfer an existing legal estate, a deed is required (unless short term lease that meets requirements)

Question 4

What is required for a deed to be valid ?

Answer 4

• clear on it’s face it is intended to be deed
• validly executed (signed, witnessed and delivered).

Question 5

What are equitable estates ?

Answer 5

If estates does not appear in s1 or s1.2 LPA 1925, then it is not legal and is equitable by nature.

Question 6

What are Estate contracts ?

Answer 6

Once a contract for sale of a freehold has been made, equity views the purchaser as owning an equitable interest during during this interval between exchange and completion

Question 7

What is a legal interest ?

Answer 7

To create or transfer an existing legal interest, a deed is required, unless an exception applies.

Deed must be - clear on its face, validly executed

Question 8

What situations allow an equitable interest in land to arise ?

Answer 8

• By express trust
• By contract
• Granting legal estate or interest which is void for lack of formalities.
• Grant of an estate or interest by person who only owns equitable interest
• Granting of an interest that can only exist in equity
• By constructive or proprietary estoppel
• implied trusts

Question 9

What is the difference between freehold and leasehold ?

Answer 9

Freehold - capable of being inherited, can pass to any class of heir, not determinate or conditional on any event

Leasehold - tenant is granted possession for fixed period

Question 10

What effect do interests have on registered and unregistered land ?

Answer 10

Registered land - interests must be protected by entry on land register

Unregistered land - legal interests bind automatically other interests binding where buyer has notice of them

Question 11

What is severance ?

Answer 11

Process by which joint tenancy in equity can be converted into tenancy in common

(Only applies to equitable interest not legal)

Question 12

When might a legal easement fail and be an equitable interest

Answer 12

If it is granted for the wrong duration of time - must be for a fixed amount (or forever freehold)

Question 13

Can you have a legal lease without formalities ?

Answer 13

• Yes if it is for less then 3 years,
• they have immediate right to possession
• landlord cannot pay charge or premium

(Parole exception)

Question 14

What makes a lease/easement/covenenant equitable instead ?

Answer 14

If the formalities fail (must be forever or for fixed yearly amount) then it will fail as legal and become equitable

Question 15

What is severance and how can it be obtained ?

Answer 15

Method by which joint tenancy in equity can be converted into a tenancy in common:

• formal severance (written notice)
• informal severance

Question 16

How is formal severance obtained?

Answer 16

Written notice that expresses desire to end tenancy immediately + received by all other tenants

Question 17

How is informal severance obtained ?

Answer 17

When joint tenancy in equity disposed of their interest by sale

Or through conduct showing that they regard themselves as owning separate shares

Question 18

When might an implied trust of land arise ?

Answer 18

• resulting trust - when someone without legal title to property makes a contribution to purchase of property (purchase price)
• constructive trust - 1) agreement + detrimental reliance and 2) conduct + direct financial contribution

Question 19

How many people can hold the legal interest ?

Answer 19

4 total

Question 20

What happens when one joint tenant mortgages their share to bank and buys it back

Answer 20

They will become tenant in common with proportionate share and the remaining tenants will be joint tenants