Interests in Land Flashcards
Which statutory provision lists the five interests capable of being legal?
Section 1(2) LPA 1925
What are the five interests capable of being legal under s1(2) LPA 1925?
a) Legal easements
b) Rentcharges
c) Charges eg mortgages
d) Statutory charges
e) Rights of entry eg for a landlord to forfeit or enforce a rentcharge
How must a legal interest be created?
By deed (s52 LPA 1925 and s1 LP(MP)A 1989)
How must a deed be executed?
It should be ‘clear on its face’ it is a deed, signed by the grantor, witnessed and delivered (dated).
Which provision states that the legal interests under s1(2) LPA 1925 must also be registered in order to be legal?
Section 27(2) LRA 2002.
If the deed fails to create a legal interest how else may it be enforced?
By a valid contract which is capable of specific performance and follows the formalities in s2 LP(MP)A 1989.
In what three circumstances will an interest fall under s1(3) LPA 1925 as an equitable interest?
- If the interest is not capable of being legal under s1(2)
- If the person creating the interest only holds an equitable interest
- If the interest does not follow the formalities required to make a legal interest, it may be treated as a fictional contract under the doctrine in Walsh v Lonsdale, but it must still fulfill the formalities to become an equitable interest.
What interests can only ever be equitable?
- Restrictive Covenants
- Beneficial interests under a trust
- Estate contracts eg options and rights of pre-emption/first refusal
Which provision gives us the formalities for the creation of equitable interests? Which provision gives us the formalities for an express declaration of trust of land? When are no formalities required for the creation of an equitable interest?
Section 53(1)(a) LPA 1925 states an equitable interest in land must be created or disposed of in signed writing by the grantor. Sections 53(1)(b) LPA 1925 states a trust of land must be evidenced by signed writing of the grantor. Section 53(2) LPA 1925 states these formalities do not apply to resulting, implied or constructive trusts eg paying the purchase, deposit or mortgage on a property.
Why will equity order specific performance of a contract of land?
Because land is unique
What equitable maxim is relevant for enforcing performance of estate contracts?
Equity sees as done that which ought to be done.
How does a right of pre-emption differ under registered and unregistered land rules?
A right to pre-emption is enforceable from the time it is created under registered land (s115 LRA 2002). Under unregistered land the right to pre-emption is only enforceable from the moment at which the owner decides to sell (Pritchard v Briggs followed in Bircham v Worrell Holdings and Kling v Keston).
What formalities are required to create an equitable mortgage?
A valid contract under s2 LP(MP)A 1989 (United Bank of Kuwait v Sahib). Before only title deeds were required. Now both are and notice must be put on the charges register (s4(1)(g) LRA 2002).
Which part of an option contract must comply with s2 LP(MP)A 1989 - the initial option or the notice to exercise the option?
The initial option contract (Spiro v Glencrown Properties)
Which authority may we use to state that an oral agreement is not sufficient to create a valid estate contract?
Sharif v Sadiq
