Third Party Interests Flashcards
Legal Easement
Definition
A right attached to one piece of land and imposes a corresponding burden on another piece of land
Legal Easement
Capable of being legal?
Yes - if the interest is equivalent to an estate in fee simple absolute in possession or term of years absolute
s.1(2)(a) LPA 1925
Legal Easement
Formalities Required
Created by deed under s.52 LPA 1925
Deed must satisfy s.1(3) LP(MP)A 1989
- signed, witnessed and delivered as a deed
Legal Easement
Enforceability in unregistered system
Not registrable
As its legal, it binds buyer
- Legal interests bind the world
Legal Easement
Enforceability in registered system
s. 27 LRA
- Binds purchaser upon registration
Equitable Easement (estate contract) Definition
Same as legal easement, but the correct formalities required to grant a legal easement is not satisfied
Equitable Easement (estate contract) Formalities required
Contract to be made by signed writing, incorporating all expressly agreed terms and signed by each party
s.2 LP(MP)A 1989
Equitable Easement (estate contract) Enforceability in unregistered system
Registrable on the LCR Class D(iii) land charge
If registered - binds buyer
If not, buyer takes free of interest
Equitable Easement (estate contract) Enforceability in registered system
s. 32 LRA - Notice
- Will not bind buyer unless they are subject of a notice by date of registration of the transfer to the purchaser (s. 29 LRA)
Equitable Easement (uncertain duration) Definition
Easement where grant is of an uncertain duration
Equitable Easement (uncertain duration) Formalities Required
In writing, signed by the person granting the easement or signed by his agent lawfully authorised
- in writing, by will or by operation of law
s. 53(1)(a) LPA 1925
Equitable Easement (uncertain duration) Enforceability in unregistered system
Registrable on the LCR Class D(iii) land charge
If registered - binds buyer
If not, buyer takes free of interest
Equitable Easement (uncertain duration) Enforceability in registered system
s. 32 LRA - Notice
- Will not bind buyer unless they are subject of a notice by date of registration of the transfer to the purchaser (s. 29 LRA)
Estate Contract
Definition
Contract to sell/grant an estate in land
Equitable interest
Estate Contract
Formalities
Contract to be made by signed writing, incorporating all expressly agreed terms and signed by each party s2 LP(MP)A 1989
Estate Contract
Enforceability in unregistered system
Registrable on LCR Class C(iv) Land Charge
Estate Contract
Enforceability in registered system
s.32 LRA - Notice
- Will not bind buyer unless they are subject of a notice by date of registration of the transfer to the purchaser (s. 29 LRA
If not registered, can be an overriding interest
Lease (Legal interest)
Definition
An interest which gives the person exclusive possession of the land for a fixed period of time
Lease
Formalities Required
Created by deed under s52 LPA 1925
Deed must satisfy s1(3) LP(MP)A 1989 - signed, witnessed and delivered as a deed
Lease
Enforceability in unregistered system
NOT registrable
Legal interests bind the world
Lease
Enforceability in registered system
s27 LRA
- Binds purchaser upon registration - making it legal
Must be for a term of more than 7 years OR disposition of a (currently unregistered) lease with more than 7 years to run.
Parole Lease (legal interest) Definition
Same definition as a normal lease
Parole Lease
Formalities
Must fulfil s54(2) LPA 1925:
- not exceeding 3 years
- takes effect immediately
- granted at best rent which can be reasonably obtained without taking a fine
Parole Lease
Enforceability in unregistered system
NOT registrable
Legal interests bind the world
Parole Lease
Enforceability in registered system
Automatically an overriding interest
Cannot register as a legal interest
Equitable Lease (not legal interest) Definition
A lease that has not been granted using the correct formalities
Equitable Lease
Formalities
Contract to be made by signed writing, incorporating all expressly agreed terms and signed by each party
s.2 LP(MP)A 1989
Equitable Lease
Enforceability in unregistered system
Class C(iv) land charge under s2(4) LCA 1972 Will bind only if it was registered as a land charge before date of conveyance (s.4(6) LCA 1972)
Equitable Lease
Enforceability in registered system
P will take estate for valuable consideration, free of interests, unless:
- equitable lease is protected by notice on register of title
- it is capable of taking effect as an overriding interest
Express Trust (equitable interest) Definition
Any trust in which some or all of the trust property is land.
Expressly made by writing
Express Trust
Formalities
Declaration of trust
- proved by signed writing who is able to declare the trust or by will
- Can be oral, but needs written evidence to be enforceable
Express Trust
Enforceability in unregistered system
NOT registrable
Trust interest binds buyer unless they have overreached or he is equity’s darling
Express Trust
Enforceability in registered system
Can be recorded by a restriction (s40 LRA) in the proprietorship register of owners title
Interest can be overreached (s27(2) LPA)
Implied Trust
Formalities Required
No formalities required under s53(2) LPA 1925
Implied Trust
Enforceability in unregistered system
NOT registrable
Trust interest binds buyer unless they have overreached or he is equity’s darling
Implied Trust
Enforceability in registered system
Can be recorded by a restriction (s40 LRA) in the proprietorship register of owners title
Interest can be overreached (s2 + s27 LPA)
Restrictive Covenant (equitable) Definition
A promise not to use land in a certain way
Restrictive Covenant (equitable) Formalities Required
In writing, signed by the person granting the easement or signed by his agent lawfully authorised (in writing/by will/by operation of law) under s53(1)(a) LPA 1925
Usually created by deed (s52 LPA 1925)
Restrictive Covenant (equitable) Enforceability in unregistered system
Registrable on LCR - Class D(ii) Land Charge
If registered, binds buyer. If not, buyer takes free of interest.
