Formalities for Trusts of Land Flashcards
What is the primary function of section 53(1)(b) of the Law of Property Act 1925?
A. To prevent fraudulent claims over land
B. To allow the creation of secret trusts
C. To make resulting trusts unenforceable
D. To ensure trusts over land are registered at HM Land Registry
A. To prevent fraudulent claims over land
Explanation:
Section 53(1)(b) requires trusts over land to be manifested and proved in writing to prevent fraud and ensure enforceability.
What does the phrase “manifested and proved” mean in the context of section 53(1)(b) LPA 1925?
A. The declaration and the writing must occur at the same time
B. The trust is void unless immediately recorded in writing
C. The declaration can be made orally, but must later be evidenced in writing
D. The trust is legally binding even if no written evidence exists
C. The declaration can be made orally, but must later be evidenced in writing
Explanation:
A trust of land exists from declaration, but it is unenforceable until written evidence is provided.
Which of the following is NOT a requirement for a trust of land under section 53(1)(b)?
A. The trust must be evidenced in writing
B. The writing must be signed by someone able to declare the trust
C. The document must be sealed by a solicitor
D. The writing must include the settlor’s intention and trust terms
C. The document must be sealed by a solicitor
Explanation:
There is no requirement that the writing be sealed by a solicitor—only that it be signed by someone able to declare the trust.
What happens if a trust of land does not comply with section 53(1)(b)?
A. The trust is automatically void
B. The trust is unenforceable but not void
C. The trustee can claim the land for themselves
D. The beneficiary loses all rights to the property
B. The trust is unenforceable but not void
Explanation:
The trust exists but cannot be enforced until written evidence is provided.
A settlor orally declares a trust over land but never provides written evidence. What is the legal consequence?
A. The trust is void and cannot be revived
B. The trust remains valid but unenforceable until written evidence is produced
C. The trust is automatically converted into a discretionary trust
D. The land is held on statutory trust
B. The trust remains valid but unenforceable until written evidence is produced
Explanation:
The trust exists but remains unenforceable until the settlor or trustee provides written evidence.
A trustee receives land under an oral trust and then refuses to acknowledge the trust, claiming they own the property. What is the likely legal outcome?
A. The trustee keeps the property as their own
B. The beneficiary has no legal rights
C. The court may enforce the trust to prevent fraud
D. The settlor’s estate will automatically reclaim the property
C. The court may enforce the trust to prevent fraud
Explanation:
Courts apply the equity will not allow a statute to be used as an instrument of fraud principle, as seen in Rochefoucauld v Boustead (1897).
A person transfers land to a trustee but fails to provide written confirmation of the trust. What happens?
A. The trustee can deny the trust and keep the land
B. The beneficiary can sue for breach of trust immediately
C. A resulting trust may arise, returning ownership to the settlor
D. The trust is automatically enforced under section 53(2) LPA 1925
C. A resulting trust may arise, returning ownership to the settlor
Explanation:
If formalities are not met, courts may impose a resulting trust to prevent unjust enrichment, as in Hodgson v Marks (1971).
A settlor orally declares a trust over land and later provides a signed letter confirming the trust. When is the trust enforceable?
A. From the date of the oral declaration
B. Only from the date the letter was signed
C. It is never enforceable without immediate written evidence
D. From the date the beneficiary takes possession of the land
A. From the date of the oral declaration
Explanation:
Once written evidence is produced, the trust becomes enforceable from the date of the original declaration.
A widow transfers her home to her lodger with an oral agreement that she can continue living there rent-free. The lodger later sells the house to a third party. What is the likely outcome?
A. The third party has full ownership with no restrictions
B. The widow can claim an overriding interest if she remains in occupation
C. The lodger can rely on section 53(1)(b) to deny the trust
D. The widow must vacate as the oral trust is void
B. The widow can claim an overriding interest if she remains in occupation
Explanation:
In Hodgson v Marks (1971), the widow’s continued occupation meant she retained an overriding interest under land law.
A person transfers land to another on the basis of an oral agreement that it will be held on trust for a third party. The transferee later denies the trust. What legal principle applies?
A. The transferee can keep the property
B. The settlor’s estate automatically reclaims ownership
C. The court may impose a constructive trust to prevent fraud
D. The third party beneficiary has no legal remedy
C. The court may impose a constructive trust to prevent fraud
Explanation:
In Bannister v Bannister (1948), courts imposed a constructive trust to prevent the legal owner from relying on formalities to commit fraud.
