Land As Property Flashcards
What are the two main types of property and how explain how they can be divided.
The two main types of properties are real property and personal property.
Real property is known as freehold.
Personal property can be split up into a further two categories, chattels real and chattels personal.
Chattels real is leasehold property and chattels personal can be split into chooses in possession and choses in action. Choses in possession is tangible items and choses in action is intangible items.
Name the three elements which make up a valid contract.
The three elements which make up a valid contract are agreement, intention and consideration.
Agreement = consists of an offer by the owner to sell and an unconditional acceptance by the buyer of all terms of the offer.
Intention = an intention by the parties that they should be legally bound.
Consideration = something of value, given by each party to the other.
What does subject to contact mean?
Subject to contact means that the transaction of transferring the land is not yet legally binding and either party may withdraw from the transaction without any legal consequences.
The buyer and seller informally agree the terms of the sale.
What happens during the first stage of a transaction (the sale)?
During the first stage of a transaction, contracts which state you he agreed terms of the sale are drawn up.
The contracts are invariably two identical copies so that they can be signed by both parties.
What happens when contracts are exchanged?
The transaction becomes legally binding.
The buyer receive the seller signed contract and the seller receives the buyers signed contract.
The buyer is obliged to buy the property and the seller is obliged to sell it.
The terms of sale are fixed.
The buyer does not have full property rights but they do have a beneficial interest in the property.
What do the terms of sale in a contract include?
Completion date and price
At the point of Exchange of contract, what would happen if either party decided to default the terms of sale?
If either party were to default, the innocent party could take court action against them.
What happens upon completion?
Completing occurs when the property is transferred to the buyer.
Completion must be by deed up s52 Law of Property Act 1925.
The purchase price is paid and the buyer takes possession of the property.
Completion must be by deed. Name the statute law which gives the rules of creation of a deed.
s52 Law of Property Act 1925
