Legal and equitable interests Flashcards
What was the effect of the 1925 legislation
The number of legal property right was reduced
The number of types if equitable property rights remained the same.
In changed that certain types of rights which previously were recognised y law and equity - only recognise by equity now. (fee tails, determinable fees, life estates and fee simple in the remainder
S.1 and S.2 LPA 1925
Sets out types of property which are capable of existing at law.
What interests or charge in over land are capable of subsisting of being conveyed or created at law?
- easement, right or privilege in or over land
- rent charge
- legal mortgage
What are the two estates that are capable of being legal, according to S.1 LPA 1925
Fee simple absolute in possession -it goes on forever and it gives owner immediate right to enjoy the land
Terms of years absolute in possession -Any estate which has a fixed maximum duration (lease) - this includes periodic tenancy (a lease for one fixed period which goes on automatically renewing itself
LEGAL INTEREST EXISTING AFTER 1925 : Easements and profits
Duration is the same as a fee simple absolute in possession (a permanent and absolute tenure in the land with the freedom to dispose of it at will)
its a private right of way - grazing rights
profit (gives the holder the right to take natural resources such as petroleum, minerals, timber, and wild game from the land of another.)
LEGAL INTEREST EXISTING AFTER 1925 : Rentcharges
The duration has to be perpetual or for a term of years absolute. It is capable of being a legal interest
if it is for the life of the recipient - equitable
no new rentcharges can be created on or after 22 August 1977 (section 2, RA 1977), any annual or other periodic sum charged on or issuing out of the land.
LEGAL INTEREST EXISTING AFTER 1925: A charge y the way of legal mortgage
A form of legal mortgage - refer to mortgages cue card
LEGAL INTEREST EXISTING AFTER 1925 : All interests in land which arise by operation of statute
some rights are against a piece of land by operation of an act of parliament.
rights arising from statute include :
- charge of interference tax (inheritance tax) - the tax becomes a charge on the land in favour of her majesty revenue and customs and the revenue has a legal interest in the land.
Legal aid Agency charge - this is the cost of litigation when a legally aided litigant recovers or preserved land. it becomes a statutory charge on the land in favour of the legal aid agency.
LEGAL INTEREST EXISTING AFTER 1925 :rights of entry
synonymous to right to forfeit - A landlord has a right to forfeit a lease if the tenant breaks the terms of the lease.
A rent-charge owner has a right to reclaim the land if the money has not been paid - these are legal interests.
What does Section 1(b) of LPA 1925 say?
it covers interest that has not complied with the formalities of creating a legal interest but also interests that are only recognised in equity.
Fee tail estates, fee simples, estates in remainder determinable fees and life estates can now exist only as an equitable interest.
What does equity follow the law means?
Every legal interest in land recognised by common law has an equivalent equitable interest.
But there is an equitable interest with no legal equivalents: restrictive covenants, proprietary estoppel, estate contracts and constructive trusts.
What are the rules of creating a legal interest?
S 52 (1) LPA 1925 - Must have a deed - the deed needs to clear on its face that it is a deed. Short term lease 3 years or less can be created in writing or orally - takes immediate effect. The deed needs to e validly executed as a deed - signed in presence of a witness and it must be delivered as a deed. - registered
what are the many ways an equitable interest in land can be created
- S 53 LPA 1925- By express trust
- By a contract to convey or create a legal estate or interest - contract must being writing, terms incorporated,it must be signed
- granting an estate or interest which is void at common law for want of correct formalities
- By a grant of an interest which exists in equity only
- By grant of an estate or interest by a person who owns only an equitable interests
- By constructive trusts
- Express trusts - instruments are required to be in writing -can not be created by word of mouth - doesn’t have to be a deed - but it normally is and by a will
Walsh v Lonsdale
A contract for an easement will create an equitable an equitable easement. A contract for a profit will create an equitable profit.
INFORMAL GRANT =DEEMED TO BE A CONTRACT = EQUITABLE INTERESTS
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