Third Party Rights

Question 1

What is a third party right?

Answer 1

A right over land, created by the owner for a third party or non-owner, that falls short of ownership of an estate.

Question 2

What is capable of being legal under S.1(2) or S.1(1)(b) LPA?

Answer 2

Easements, mortgages and leases

Question 3

What isn’t capable of being legal under s.1(3) LPA?

Answer 3

Restrictive covenants, estate contracts, options, beneficial interests, trusts and the FLA

Question 4

What are the formalities of a legal easement or lease?

Answer 4

Must be equivalent to term of years absolute (if an easement). Both must be made by deed, signed, witnessed and delivered as a deed.

Question 5

What are the requirements under s.30 Family Law Act 1996?

Answer 5

Must be married or in a civil partnership, the legal owner must be alive, and the home must have been or will be the matrimonial home.

Question 6

What are the formalities for a restrictive covenant?

Answer 6

Must be signed and in writing under s.53(1)(a) LPA.

Question 7

What is the difference between the formality for an express trust and an implied trust?

Answer 7

Express trust - must be in writing (s.53)(1)

Implied trust - can arise without formalities. (2)

Question 8

What are the formalities for an equitable lease?

Answer 8

Signed, in writing and containing all the terms. This is because an equitable lease is a type of estate contract.

Question 9

What percentage of titles to land are unregistered in England and Wales?

Answer 9

Approximately 10%

Question 10

Under s.44 of the LPA, what will a seller have to produce within the unregistered system?

Answer 10

Seller will have to produce deeds which show ownership of land during 15 years prior to current contract of sale.

Question 11

What rights are registerable on the Land Charges Register under the unregistered system?

Answer 11

Puisne mortgage, estate contract, equitable lease, restrictive covenant, equitable easement, right to occupy matrimonial home.

Question 12

What are the four classifications under the registered system?

Answer 12

Registerable disposition, an overriding interest, a trust interest or an interest affective a registered estate (IARE).

Question 13

Name three of the registerable dispositions under a registered system.

Answer 13

1. Legal easements (expressly by deed).
2. Legal charges (mortgages).
3. Legal lease over 7 years.
4. A sale of an unregistered freehold title.
5. The transfer of an unregistered freehold estate by means of an asset.

Question 14

Name three interests under IARE

Answer 14

Estate contract, equitable easement, restrictive covenant (can also have FLA rights).

Question 15

How is a buyer bound to an overriding interest?

Answer 15

It must exist by date of registration of buyer as the new owner (but does not need to be registered on the land charges register).

BUT - sch 3 para 2, the date of registration of the buyer as new owner is the relevant date for assessing actual occupation.

Question 16

What is a qualifying estate under the LRA 2002?

Answer 16

An unregistered legal estate which is either freehold in land, or a leasehold for a term which at the time of transfer, grant or creation, has more than seven years to run.

Question 17

What are the two pre-1926 rules under Equity’s Darling?

Answer 17

1. ‘Legal interests bind the whole world’.
2. Applies to a limited number of equitable third-party interests. This includes restrictive covenants and beneficial interests in land.

Question 18

What does bone fide mean?

Answer 18

Acting in good faith, not fraudulent.

Question 19

What are all steps to define Equity’s Darling?

Answer 19

1. Bone Fide
2. Purchaser
3. Bought for value
4. Buyer must have taken legal estate in property.
5. Without notice.

Question 20

What are the three ways to prove the buyer purchased without notice of a third party right?

Answer 20

1. Actual
2. Imputed
3. Constructive