Freehold + leasehold estates, legal + equitable interests in land

Question 1

Which two estates in land are capable of being legal?

Answer 1

Freehold - Estate in fee simple absolute in possession s1(1)(a) LPA 1925

Leasehold - Term of years absolute s1(1)(b) LPA 192

Question 2

Who is bound by a legal estate in land?

Answer 2

Legal estates and interests bind the world - bind any buyer whether they knew about the interest or not.

The only exception to this rule is pusine mortgages which must be protected by the deposit of deeds.

Question 3

How can an equitable interest be protected in unregistered land?

Answer 3

Can either be protected by a Land Charge or doctrine of notice.

Question 4

What is a class C(iv) land charge?

Answer 4

An estate contract

Question 5

What is a class D(ii) land charge?

Answer 5

A restrictive covenant

Question 6

What is a class D(iii) land charge?

Answer 6

Equitable easement

Question 7

What is a class F land charge?

Answer 7

Home right

Question 8

What is a class C(i)

Answer 8

Pusine mortgage

Question 9

How is a land charge registered?

Answer 9

Not registered against the land but against the registered owner in the version of their name as appears in deeds

Question 10

What is the effect of registering a Land Charge?

Answer 10

If registered a the Land Charges Department it is deemed to give actual notice of the interest from the date of registration so any buyer will be bound.

Question 11

What is the effect of failing to register a Land Charge?

Answer 11

Void against a buyer unless charge is registered before completion of the purchase.

Even if a buyer is aware of the interest the purchaser will still not be bound unless it has been registered.

Question 12

Who is Equity’s Darling?

Answer 12

A bona fide purchaser for value of a legal estate without notice.

Question 13

What does the doctrine of notice apply to in unregistered land? How does it apply?

Answer 13

Equitable interests pre-dating 1925 and beneficial interests under a trust.

If a buyer has notice (actual, imputed or constructive) of an interest under a trust or pre 1925 equitable interest they will be bound by it.

Equity’s darling not bound.

Question 14

What is considered actual notice of an interest?

Answer 14

The buyer knows of existence of equitable interest.

Question 15

What is considered actual notice of an interest?

Answer 15

The buyer must make checks as a reasonable person with requisite legal knowlege would make.

If the occupation would have been revealed on reasonable inspection the buyer is bound.

Question 16

What is imputed notice

Answer 16

Where the buyer might not actually know but you as lawyer know - another agent acting for them knows, knowledge agent has is imputed to buyer

Question 17

What is overreaching?

Answer 17

If an interest under a trust is overreached the buyer purchases free from the trust interest. The person with the interest in the property will then have an interest in the purchase price.

• The buyer has to be buying a legal estate
• The purchase money the buyer pays must be paid to all the trustees (or legal owner)
• Must be at least two trustees - one performs a check/balance on the other
• Money has to go to all trustees not just one

Question 18

What is found on the property register?

Answer 18

Description of the land and type of estate (freehold or leasehold)

Question 19

What is found on the proprietorship register?

Answer 19

Class of title.
Name and address of registered proprietor
Restrictions on ability of registered proprietor to deal with the land.

Question 20

What is found on the charges register?

Answer 20

Notices of any third-party rights registered against the title

Question 21

Where might an easement be found on the title?

Answer 21

On the property register as it is a right of way benefitting the property.

Question 22

What are the formalities for creating a Freehold interest in land

Answer 22

Must be created by deed

A deed is a document which satisfies the criteria under s1(2)LP(MP)A 1989

Makes clear it intends to be a deed
is validly executed as a deed and signed in the presence of a witness and delivered as a deed

Question 23

Name the two types of leases capable of being legal

Answer 23

Fixed term lease

Periodic lease

Question 24

Name the 5 interests in land capable of being legal.

Answer 24

Leasehold

Freehold

Easement

Rentcharge

Mortgage

Question 25

Name the 5 interests in land which are capable of being equitable

Answer 25

Equitable easement Equitable lease Restrictive covenant Estate contract Trusts

Question 26

How is an express trust over land created?

Answer 26

In writing under s53(1)(b) LPA

Question 27

How does a resulting trust occur?

Answer 27

When a person who is not the legal owner contributes directly to the purchase price of the property.

Question 28

How does a constructive trust occur?

Answer 28

When a person who is not the legal owner of the property makes a contribution other than a direct financial contribution at the time of the purchase,

Question 29

When does a statutory right under s30 FLA 1996 occur?

Answer 29

When the parties are legally married or civil partners The home is, has been or is intended to be the matrimonial home. Note this is not a right to legal title just the ability to live in the property.

Question 30

Which type of lease needs no formalities for creation?

Answer 30

A parol lease - can be created orally. Must be for three years or less. Take effect in possession. The tenant pays the best rent. The landlord must not charge a premium / fine.

Question 31

A lease for a term of 5 years was created using a signed contract - is this a legal or equitable lease.

Answer 31

A deed must be used for the lease to be legal. The lease will be equitable so long as there is 1. a contract 2. complying with s2 LPMPA (in writing, signed by all the parties containing all the terms of the agreement and both parties have clean hands)

Question 32

How are restrictive covenants created?

Answer 32

Pure equitable right - under s53(1)(a) in signed writing but only by the person who owns the land.

Question 33

What is a licence?

Answer 33

A personal right to use the land. It does not create an estate or an interest in the land. A licence does not bind a successor in title.

Question 34

How is a legal estate in land held?

Answer 34

The legal estate is ALWAYS held as a joint tenancy. The joint tenancy of the legal estate cannot be severed and the rights of survivorship apply. If one JT dies the other takes their interest.

Question 35

Equitable Mortgages

Answer 35

Mortgages of equitable interests Where the borrower holds an equitable interest in land Can be created very informally and need only be in writing and signed by the grantor Defective legal mortgages When the formalities for a legal mortgages are not validly met, equity may regard it as an equitable mortgage if It is in writing, contains all the agreed terms and is signed by both the mortgagor and mortgagee

Question 36

Discharge of Mortgage

Answer 36

Once a mortgage has been repaid in full, the mortgage entries at the Land registry must be cancelled. A mortgage is only considered to be fully discharged when all reference to it has been removed from the Charges Register at the Land Registry.

Question 37

Easement

Answer 37

a proprietary right to use land which belongs to somebody else

Question 38

dominant tenement

Answer 38

The person who receives the benefit of the easement is the grantee and their land, which is benefitted by the easement

Question 39

servient tenement

Answer 39

The person who grants the easement land is the grantor and their land, which is burdened by the easement

Question 40

Legal easements

Answer 40

An easement is capable of being a legal interest in land if it fulfils the requirements as to duration

Question 41

Equitable easements

Answer 41

If an easement is not granted for the equivalent of a freehold or leasehold estate, it can only be equitable

Question 42

Negative easements

Answer 42

The only recognised negative easements at law are: A right to light (there is no automatic right to light, an easement can exist in relation to a defined aperture) A right to air A right of support (eg from the dividing wall between semi-detached houses)

Question 43

Quasi-Easements

Answer 43

Where landowners use, for example, paths on their own land, they are not enjoying easements. They are using the paths as owners of the land. However, the use of the paths could become easements if ever the land was divided.

Question 44

Public Rights

Answer 44

Public rights can be similar in scope to easements. The best example is a right of way. However, instead of being exercised by an individual or particular body, the right by its nature is exercised by the general public.

Question 45

Profits a prendre

Answer 45

An easement does not confer on the holder the right to take anything, such as produce, animals, fish, or minerals, from the land. A profit a prendre confers such a right. The rules governing profits are very similar to the rules governing easements, however they are beyond the scope of this course.