L1 Formal Acquisition Flashcards
3 stages of formal acquisition
(1) Contract
(2) Completion / Conveyance
(3) Registration
s2 LP(MP)A 1989
= contract for the sale of an interest in land must be
- in writing,
- signed by both parties, and
- incorporate the agreed terms (in the doc or by reference)
Exception to s2 LP(MP)A 1989
= in **s2(5) **:
- doesn’t apply to contracts to grant a short lease (less than 3y)
- doesn’t affect IT, RT and CTs
/!\ debate whether proprietary estoppel can fit under CT exception
Doctrine of anticipation (3)
= **Equity regards as done that which ought to be done **
=> Once the contract is entered into, P gets an EI in the property (V holds on VPCT for T)
But /!\ Scott v Southern Pacific Mortgages: P’s EI doesn’t enable him to give another person a proprietary right (binding on 3Ps) ≠ other types of Bs under a trust (?)
Walsh v Lonsdale
= a person occupying under an agreement for a lease is to be treated as holding on the terms of the agreement
Scott v Southern Pacific Mortgages
holder of EI under VPCT cannot grant proprietary rights to others
Formality for contract for the sale of land
= s2 LP(MP)A 1989
Formality for conveyance of a legal estate or interest in land
= s52 LPA 1925
s52 LPA 1925
“All conveyances of land or of any interest therein are void for the purpose of conveying or creating a legal estate unless made by deed.”
Exception to s52
short leases under s54(2) = leases
- for a term of less than 3y,
- taking effect in possession,
- at normal /market rent
Definition of a deed
s1 LP(MP)A 1989:
- s1(2) : for an instrument to be a deed, it must (a) make clear that it is intended to be a deed by person making it / parties to it and (b) be ‘validly executed as a deed’ (by person / parties or person authorised by them)
- s1(3) : validly executed = signed, witnessed and delivered as a deed
Formality for conveyance of an equitable interest in land
= s53 LPA 1925
s53(1) LPA 1925
(a) interests in land can only be created or disposed of in signed writing
(b) declarations of a trust of land must be ‘manifested and proved’ (evidenced) by signed writing
(c) dispositions of a subsisting equitable interest must be in signed writing
s53(2) LPA 1925
no requirement of writing for implied, resulting and constructive trusts
/!\ ‘equity will not allow the statute to be used as an instrument of fraud’
=> see Rochefoucauld v Boustead line of cases (in trusts)
Voluntary first registration
=s3 LRA 2002
s3 LRA 2002
proprietor of UR title may apply for first registration of
- a freehold
- a lease w/ more than 7y to run or w/ discontinuous right to possession
- a rentcharge, franchise or profit a prendre in gross
Compulsory first registration
= s4 LRA 2002
s4 LRA 2002:
Requirement of first registration is triggered by :
- transfer of an unregistered freehold or leasehold w/ more than 7y to run
- grant of a lease (out of UR estate) which is for more than 7y or takes effect more than 3m after date of grant
- creation of a first legal mortgage over UR freehold or leasehold w/ more than 7y to run at date of creation
Permitted delay
= s6 LRA 2002 : duty to apply for first registration within 2 months after triggering event
possible to apply for extension of that period under s2(5)
If you fail to comply w/ s4
s7(1) LRA 2002: “the transfer, grant or creation becomes void as regards the transfer, grant or creation of a legal estate.”
=> s7(2) : when this happens
- title to be transferred is held on bare trust by transferor for transferee
- grant or creation has effect as a contract to grant or create the legal estate in question
≠ types of title : freeholds
s9 LRA 2002 : Freehold title can be :
(a) absolute = marketable /such as a competent legal professional would advise to buy
(b) qualified = established only for a limited period or subject to reservations which cannot be disregarded
(c) possessory = person is in actual possession but nothing more
≠types of title : leaseholds
s10 LRA 2002: leasehold title can be :
(a) absolute = both lease and grantor’s title are marketable (as above)
(b) good = lease itself is good but grantor’s title might not be
(c) qualified = established only for a limited period or subject to reservations which cannot be disregarded
(d) possessory = person is in actual possession but nothing more
Dispositions required to be completed by registration (5)
s27(2) LRA 2002:
- transfer of a registered legal estate
- grant of a lease for more than 7y
- grant of discontinuous leases and leases that do not take immediate effect in possession
- express creations of interests under s1(2) LPA 1925 (easements, profits, rentcharges…)
- grant of a legal charge (ie mortgage)
If you fail to comply w/ s27(2)
s27(1) LRA 2002 : dispositions listed in s27(2) do not take effect at law until completion by registration, but do take effect in equity
=> disponee gets equitable version of what is being disposed
Disposition of a registered estate - starting point
s28(1) LRA 2002 : default rule not affected by registration = anyone who acquires an interest in land takes subject to all previous interests and will have priority over interests created after
BUT /!\ a lot of exceptions under s29 and 30
Disposition of a registered estate - significant exception
= s29(1) LRA 2002 : gives priority to registerable dispositions made for valuable consideration
=> take priority over everything except protected interests
Protected interests (3)
listed in s29(2) :
- registered land charges (mortgages)
- interests protected by notices on the register
- overriding interests (sch 3)
Overriding interests (4)
sch 3 LRA 2002 :
- some short leases (less than 7y?)
- rights of persons in actual occupation of the land
- some easements and profits
- miscellaneous other interests listed in sch3 para 4-9
