Legal Estates, Legal Interests And Equitable Interests In Land Flashcards
What statutory provisions are the forms of land contained in?
Law of Property Act 1925
What are the two types of legal estates?
Freehold and leasehold
What are the 5 types of legal interests?
Easement Rent charge Legal Mortgage Other similar charges Rights of Entry
What are the equitable interests?
All other interests in land are equitable
What is the definition of freehold?
Fee Simple Absolute in Possession
Define Fee Simple Absolute in Possession.
‘Inheritable Interest’ ‘By General Heirs’ ‘Interest not subject to anything else’ ‘Interest is current and person is living there or in receipts of profits’
What is the Walsingham Case (1573)?
“He who has a fee-simple in land has a time in land without end, or the land for a time without end.”
What is the case of Minister of State for the Army v Dalziel (1944)?
“The tenant of an unencumbered estate in fee simple has the largest possible bundle [of rights]”
Where is ‘possession’ defined in law?
Law of Property Act 1925 s205(1)
How is a leasehold defined?
Terms of years absolute
What benefits does a leasehold allow?
An asset that will generally gain in capital value - barring recessions
A regular income - in the form of rent
Ensure the maintenance of the asset by or at the expense of another
Where is term of years absolute defined?
Law of Property Act 1925 s205(27)
What are the2 types of obsolete legal estates?
Life estates
Entailed estates
What are life estates?
On death of the tenant, the estate will revert back to the grantor or his heirs.
Why is a life estate not a legal estate?
They are not absolute, they are certain to end on the death of the tenant for life
Define pur autre vie.
The life of another
What is an entailed estate?
Left to certain heirs (e.g. only male relatives)
Why are entailed estates not classed as a legal estate?
No new entailed estates can be created since the Trusts of Land and Appointment of Trustees Act 1996 Sch1 (5)
What is common hold?
Register he freeholder of common parts (stairwell) then private company whose members are unit holders
When was common hold introduced?
By Commonhold and Leasehold Reform Act in 2002
Why can’t future interests be legal estates?
They are due to take place in the future so are not in possession
What are the two types of future interests?
Reversion
Remainder
What is reversion?
Granting a life interest to someone and when it ends the enjoyment returns back to you
What is remainder?
Granting a life interest to someone and remainder to someone else. When the first person dies the second receives the interest
What is an example of an easement?
Right of way
What case supports easements?
Metropolitan Railway v Fowler [1892]
What is the case of Metropolitan Railway v Fowler [1892]?
Defined an easement as “some right which a person has over land which is not his own”
What is a profit á prendre?
Entitles the holder to take something from another persons land
What is an example of a profit á prendre?
Right to fish, right to take wood
How is a profit granted and by what?
By express grant
S26 Law of Property Act 1925 but has to be registered
What are the three forms of land?
Legal estate
Legal interests
Equitable interests
How can profits exist?
In both law and equity but to be a legal interest must meet the requirements
When can a profit be acquired by implied grant?
Under rules relating to necessity, common intention and s62
Does a profit need to be exclusive?
No, meaning it can be enjoyed in conjunction with others
What is a rent charge?
Occurs when a landowner sold the land for a lump sum and charged the land with the payment of a periodic sum
What is the penalty if the rentcharge is paid?
The holder ha a right of entry over the property to collect the sum
How did the Rentcharges Act 1977 change this area of law?
No new ones to be created and existing ones will be brought to an end in 2037
What is a legal mortgage?
Where the mortgagor grants a mortgage to the mortgagee by creating a legal charge over his land to act as security for the loan
Who is the mortgagor?
The landowner
Who is the mortgagee?
The lender
What case related to mortgages?
Santley v Wilde [1899]
What is the case of Santley v Wilde [1899]?
“A mortgage is a conveyance of land or an assignment of chattels as security for the payment of a debt or the discharge of some other obligation for which it is given”
What is a right of entry?
The right of a landlord to forfeit a lease to observe the terms of the lease
What form does right of entry have to be to be enforceable?
Legal
Name 4 equitable interests in land.
Restrictive Covenants
Beneficial Interests Under a Trust in Land
Life Interest
Interests Failing the Formal Requirement for their Creation in Law
What is a restrictive covenant?
A covenant used to maintain the character of residential areas
What’s an example of a restrictive covenant?
No aerials in the front of house
No caravans on drive
What is a beneficial interest under a trust of land?
The legal estate is held on trust by trustees for the benefit of the beneficiaries, who holds the equitable estate
When is an example of a beneficial interest?
A minor inheriting a property would have a beneficial interest and trustees, appointed by the deceased would maintain the legal estate for the minor
What is a life interest?
Interest will last for the life of the person whom it was granted, or for another person where granted
What is an interest failing the formal requirements for their creation in land?
Where someone attempted to create a legal interest but the formalities were not met so created an equitable interest instead
What are the requirement for a legal estate / interest to qualify?
Must be listed in s1 and must satisfy the formal requirements
Where are the requirements for a deed set out?
S1 Law of Property (Miscellaneous Property) Act 1989
What are the requirements for a deed?
- Document makes it clear that it’s intended to be a deed
- The deed is executed (signed) by the persons making the deed
- In the presence of a witness who verifies that persons signature
- It is delivered as a deed by the person who signed it
What are the exceptions for short leases regarding deeds?
Less than 3 years
Taking effect in possession
At an open market rent without payment of a premium
How can a short lease with the exception be created?
Parol (orally) without a deed
If a legal estate is transferred to a minor, what happens?
Only the equitable interest will be transferred, the legal estate will remain with the transferor who will hold the legal interest as a trustee for the minor
What statute must you satisfy if you are creating a contract for sale or other disposition?
S2 Law of Property (Miscellaneous Provisions) Act 1989
What are the requirements when creating a contract for sale or other disposition?
- Made in writing
- Incorporate all terms in one document
- Must be signed by each party
What happens if you fail to meet the requirements for creating a contract for sale or other disposition?
Will render the contract non-existent
How must an express trust be delivered?
Must be in writing and signed
Where are the requirements for an express trust stated?
S53(1) Law of Property Act 1925
How must an implied trust be delivered?
No writing is required nor a contract
Where are the requirements for implied trust stated?
S53(2) Law of Property Act 1925
S2(5) Law of Property (Miscellaneous Provisions) Act 1989
