Estates, Interests and Formalities

Question 1

Difference between personal and property rights

Answer 1

Property (proprietary) rights - take effect at law and are capable of binding third parties.

Personal rights - are non-legal but may take effect at equity.

Question 2

What determines whether a property right can be enforced?

Answer 2

Formalities: is the right contained in a deed and recognised by the Land Registry?

Question 3

What are the 3 ways easements can be created?

Answer 3

1) Expressly
2) Impliedly
3) Through prescription

Question 4

Are easements personal or property rights?

Answer 4

Property rights
Take effect at law so benefit / burden future estate owners

Question 5

What are the 2 estates recognised at law and where are they found?

Answer 5

Freehold estate - s.1(1)(a) LPA 1925

Leasehold estate - s.1(1)(b) LPA 1925

Question 6

What are the requirements for a deed and where are they set out?

Answer 6

1) Made in writing;

2) Makes clear on its face it is intended to be a deed by the person making it;

3) It is validly executed (signed and witnessed)

Question 7

When will a right be equitable?

Answer 7

1) When is is not capable of being legal (so not set out in s.1(1) LPA 1925);

2) Correct formalities are not followed so no creation of a legal right but right may be recognised in equity.

Question 8

Trustee

Answer 8

The legal estate owner: the person land is transferred to and who are entrusted to manage this land for the benefit of the equitable estate owner.

Question 9

Beneficiary

Answer 9

Equitable estate owner: the original legal owner of land who transfers their legal rights in property to a trustee. Equity recognises their property rights and will enforce them if breached.

Question 10

Beneficial interests

Answer 10

Term for equitable interests

Question 11

What happens if a legal estate subject to a trust is purchased?

Answer 11

The beneficial interest (trust) is proprietary, meaning it is capable of binding a purchaser (in equity only). However, the beneficial interest may be ‘overreached’ as part of the transfer.

Question 12

What is the term used that separates legal and equitable rights?

Answer 12

‘Curtain’

Question 13

Where are the powers of trustees of land outlined?

Answer 13

Trusts of Land and Appointment of Trustees Act 1996

Question 14

What are the ways in which a trust can be created?

Answer 14

Expressly - s.53(1)(b) Law Property Act 1925

Impliedly - s.53(2) Law of Property Act 1925

Question 15

Where can a NON-EXHAUSTIVE list of equitable property rights be found?

Answer 15

s.1(3) Law of Property Act 1925

Question 16

Which 5 equitable property rights does s.1(3) Law of Property Act 1925 set out?

Answer 16

1) Restrictive covenants
2) Estate contracts
3) Beneficial interests under trusts of land
4) Borrower’s equity of redemption in mortgage
5) Proprietary estoppel

Question 17

What was the main aim of the Land Registration Act 2002?

Answer 17

s.4 LRA 2002 now sets out that upon the occurrence of a ‘trigger event’, title to an unregistered estate must be registered at the Land Registry (to make it a registered title).

Question 18

Where is the ‘trigger event’ for registering unregistered land set out?

Answer 18

s.4 Land Registration Act 2002

Question 19

s.4 Land Registration Act 2002 sets out _____ about when title to land must be registered (‘trigger event’).

Answer 19

s.4
(1) The requirement of registration applies on the occurrence of any of the following events -
(a) the transfer of a qualifying estate -
(i) for valuable or other consideration, by way of gift or in pursuance of an order of any court,
(ii) by means of an assent (including a vesting assent); or
(iii) giving effect to a partition of land subject to a trust of land.