Formalities Flashcards
Benefits of formalities
Warns the parties who are entering into a transaction that their actions may have legal consequences Makes them stop and thinkAvoids rash decision makingParties cannot easily slip into a transaction If you write things down you see the gaps Clarifies rights and obligations
What are the best formalities?
Those that are required for the transaction to be legally valid
What else does formality protect from?
Pressure and duress
Evidentiary aspect of formalities
Writing shows proofGives the courts something to work off
Formalities from the view point of the state
Allows collection of taxes Gives data about the property market
Not legal unless a deed
S52 LPA 1925
The idea of channelling (fuller)
Channels the parties towards a particular legal goal
A legal estate can be created only by deed
LPA 1925 s52(1)
A legal estate is defined
LPA 1925 s205(2)(x)
Conveyance includes a mortgage and a lease
LPA 1925 s205(1)(II)
Is a deed enough to be legal?
Not in most cases, most need the title to be registered
A deed used to have to be signed, sealed and delivered
From 1926-1989
The need for a deal to be sealed was abolished in… By section…
1989LP(MP)A 1989 s1 (1)(b)
You need to make it clear that a deed is a deed
S1(2)(a) LPA
A deed needs to be signed witnessed and delivered
LPA 1925 s1(3)
Exceptions to a deed
Includes leases or tenancies not required by law to be made in writing LPA s52(2)(d) Not required for a term not exceeding 3 years
What is a periodic tenancy?
No defined end to the lease
Is a periodic tenancy an exception?
S54(2) It is an exception as each period of the tenancy is less than 3 years
EquityAny interest I. Land must be created or disposed of in writing signed by the disponor or her agent
LPA s53(1)(a)
EquityA declaration of a trust in land must be evidenced in writing, signed by some person who is able to declare such trust
LPA s53(1)(b)
EquityThe disposition of a beneficial interest much be in writing and signed by the disponor or her agent
S53 (1)(c)