Formalities Flashcards
What is an estate contract, and is it a personal or proprietary right?
An estate contract is a contract for disposition of an interest in land. If it is specifically enforceable and compliant with S.2 of the LP(MP)A 1989, the doctrine of anticipation vests the equitable title in the purchaser so that the vendor holds on trust for the purchaser (Duffill). Thus an estate contract is an equitable proprietary interest,
When does S.2, LP(MP)A 1989 apply, and what formality requirements does it impose?
A contract for the disposition of an interest in land must be made in writing signed and incorporate all terms expressly agreed on (i.e. either contained in the contract or in some other document to which contract refers).
What is the effect of non-compliance with S.2, LP(MP)A 1989? Can this be justified (3 exceptions)?
The effect of non-compliance is that there is no contract, which also precludes the doctrine of anticipation from operating. However, the harsher aspects of this are mitigated by the possibility of rectification for a mistake in drafting (Wright), the rule that S.2 applies only to executory and not executed contracts (Tootal Clothing) and the judicial discretion to construe terms absent from the written document as collateral contracts (Record, though Grossman indicates resort to such a practice may be frowned upon).
Joyce v Rigolli (exception to S.2 LP(MP)A)
Clarifying an unclear boundary is outside the section; the parties aim to resolve an uncertainty and not to transfer land
Spiro
Contracts conferring an option to purchase fall within S.2 LP(MP)A
What is the formality requirement for the creation or transfer of a legal right? Any exceptions?
S.52 LPA 1925 – the creation or transfer of a legal right requires the execution of a deed.
Exception 1 - S.54(2) exempts from S.52 leases
What is the consequence of a failure to comply w/ S.52 LPA 1925?
The legal title does not pass, but the purchaser may have a claim in equity under the doctrine of anticipation, which as far as possible places the holder of an estate contract in the same position as if the formality had been observed.
What are the requirements for a valid deed?
S.1 LPA 1989 – a deed is a document making clear on its face that it is (i) intended to be a deed by the person(s) making it and (ii) validly executed as a deed (signed, witnessed and delivered)
Vincent (delivery of deed)
Delivery merely requires an act “evincing an intention to be bound”, which is satisfied even if the signatory makes the “delivery” conditional (creating an escrow)
How may we ascertain the validity of a deed prepared and signed in advance of an anticipated completion?
Longman – the crucial distinction is whether when the document was prepared and signed there was an intention that the transfer of legal rights should thereby be irrevocable; typically it will not and therefore an additional act of delivery evincing the requisite intention is required.
Are escrows deeds?
Escrows are irrevocable but will not take effect until condition fulfilled, while non-deeds are revocable (Longman)
When does the requirement of registration apply, and what is the consequence of non-compliance?
It applies to creation of most legal interests in land (S.4 - compulsory first registration) as well as most dispositions of interests in land (S.27). The sanction for non-compliance is that legal title does not pass until completed by registration (S.27(1)), until which time C’s interest is equitable only.
