ux keystaws1to3

Question 1

Section 1(1) Law of Property Act 1925 states there are two legal estates. What are they?

Answer 1

(a) An estate in fee simple absolute in possession;

(b) A term of years absolute

Question 2

What are the legal interests set out in section 1(2).

Answer 2

(a) An easement, right, or privilege in or over land for an interest equivalent to an estate in fee simple absolute in possession or a term of years absolute; … (can be forever or limited in time)
(c) A charge by way of legal mortgage; …

Easements created for an uncertain period of time do not satisfy the s1(2)(a) duration requirement and so fall under s1(3).

Question 3

The statutory right under s 30 of the Family Law Act 1996 arises provided that:

Answer 3

(a) the parties are legally married (not divorced); extends to same-sex couples who have registered their partnership under the Civil Partnership Act 2004.
(b) the home is, has been or is intended to be the matrimonial home.

The right is independent of and in addition to any equitable interest arising under a trust which the non-legal owning spouse or civil partner may have.

Question 4

Section 31(10(a) of the Family Law Act 1996 states that for the statutory right to be binding…

Answer 4

…the person wishing to rely on this right must register a notice in the charges register…

…and that registration must take place before registration of the new owner as per section 29 of the Land Registration Act.

Question 5

Section 31(10(b) of the Family Law Act says what regarding overriding interests?

Answer 5

This says that a person’s home right cannot be overriding by virtue of their occupation under Schedule 3 paragraph (2) of the Land Registration Act.

Question 6

In section 1(3) of the Law of Property Act 1925.

(3) All other estates, interests, and charges in or over land take effect as ** interests

Answer 6

*** equitable.

Question 7

Law of Property Act 1925, s 52(1) states that…

Answer 7

…generally, to be valid, all legal estates and interests must be created by deed.

This covers all the estates and interests listed in s 1(1) and (2) of the Law of Property Act 1925 (i.e. freehold or leaeshold).

Question 8

Section 54(2) of the Law of Property Act 1925 states one exception for the need for a deed for a legal estate or interest. What is it? What are the conditions for it?

Answer 8

The parol lease exception.

The lease must take effect immediately in possession (ie the tenant must be entitled to take possession as soon as the lease is granted).

The lease must have been granted at the best rent which can be reasonably obtained without taking a fine.

s 54(2) of the Law of Property Act 1925 applies only to the creation of a lease – not the sale.

Question 9

The requirements for a deed are contained in s 1 of the Law of Property (Miscellaneous Provisions) Act 1989. What are they?

Answer 9

(a) make it clear on the face of the document that it is intended to be a deed (whether describing itself as a deed or being executed by the parties as a deed); and
(b) be signed, witnessed and delivered. These provisions apply to deeds made on or after 31 July 1990.

Question 10

Where there is a contract to create or convey a legal estate in land, equity will recognise that contract as creating an equitable interest in land, so long as it satisfies the requirements for a contract under s 2 of the Law of Property (Miscellaneous Provisions) Act 1989. What are they?

Answer 10

…the agreement must be in writing, contain all the agreed terms and be signed by or on behalf of each party.

(5) This section does not apply in relation to –
(a) a contract to grant such a lease as is mentioned in section 54(2) of the Law of Property Act 1925 (short leases);
(b) a contract made in the course of a public auction; …

Question 11

Law of Property Act 1925, s 53(1) (c) states that any sale, gift or other disposition of an equitable interest…

Answer 11

must be in writing and signed by the parties to the document.

Question 12

Registerable dispositions under s 27 of the Land Registration Act (LRA) 2002 include;

Answer 12

the creation of a legal mortgage
legal easement expressly created by deed
the creation of a leasehold estate for a term of more than seven years,
or the disposition of a (currently unregistered) lease with more than seven years to run.

Question 13

It only becomes legal and enforceable (i.e. binds the buyer) if registered at Land Registry by date of registration of the buyer (s29 LRA 2002). What is this date?

Answer 13

This is the date the buyer becomes the legal owner. Once it has been completed by registration, these interests will both become legal and bind any purchaser of the land.

Question 14

Interests affecting a registered estate include:

Answer 14

a) Burden of restrictive covenant
b) Equitable easement
c) Estate contract e.g. equitable lease, option,
d) Equitable lease where the tenant is in occupation of the land (also Sch 3 para 2)
e) Right under the FLA 1996

Question 15

IAREs need registering as a notice on the register (Land Registration Act 2002, s 32) before the new owner…

Answer 15

… is registered (s 29 of the Land Registration Act 2002).

Question 16

Interest of a beneficiary under a trust of land - Equitable interests cannot be protected by a notice (s 33 Land Registration Act 2002). They can be recorded by…

Answer 16

..a restriction (s 40 Land Registration Act 2002) in the proprietorship register of the owner’s title at Land Registry by date of registration of buyer.

Question 17

Overriding interest in Sch 3 include;

Answer 17

a) Legal leases for 7 years or less (para 1)
b) Interests of persons in actual occupation (note conditions) (para 2)
c) Legal easements implied on sale of part or created by prescription (note conditions) (para 3)

Question 18

Sch 3 Para 1 states

Answer 18

A legal lease granted for 7 years or less is a third party right that binds the land even though there is no entry on the register recording the existence of the third party right.

This overriding interests which will bind a purchaser if in existence at the date of the disposition to the purchaser.

Question 19

Sch 3 Para 2 states

Answer 19

Legal easements which are not created expressly by deed (ie those created by implication or prescription) is a third party right that binds the land even though there is no entry on the register recording the existence of the third party right.

This overriding interests which will bind a purchaser if in existence at the date of the disposition to the purchaser (Sch 3, para 3 Land Registration Act 2002).

Question 20

There are, however, important limitations on the easements which will be granted overriding status under Sch 3, para 3 to the Land Registration Act 2002.
The provision only applies to easements created by prescription or implication.
In addition, the easement will be an overriding interest and binding on the purchaser only if, since 13 October 2006:

Answer 20

(i) the purchaser actually knew of the easement before the purchase of the property; or
(ii) the easement would have been obvious on a reasonably careful inspection of the land; or
(iii) the easement has been used by the person entitled to it in the year preceding the disposition of the land.

Question 21

Overreaching - can be achieved in both…

Answer 21

unreg and reg systems

Question 22

Overriding can only be

Answer 22

applicable in the reg system.

Question 23

To protect the interest under Schedule 3 para 2 Land Registration Act 2002 the interest must be…

Answer 23

…proprietary in nature, ie not a personal right.

The occupation (not the interest) would have been obvious on a reasonably careful inspection of the land at the time of the sale;

or the purchaser had actual knowledge of the interest at the time of the sale.

In addition, if enquiries were made of the person holding the interest before the sale, that person must have disclosed it if he could reasonably have been expected to do so.

There must be acutal occupation - Actual occupation’ is not defined in the statute. In Williams & Glyn’s Bank v Boland Lord Wilberforce clearly required there to be physical presence on the land by the claimant, not just the right to occupy.

Question 24

Law of Property Act 1925, ss 2, 27 states that If a buyer discovers that someone other than the seller has a beneficial interest under a trust in the property protected by Sch 3, para 2, that beneficial interest can be overreached if the buyer…

Answer 24

..pays the purchase money to all the trustees being at least two in number.

Question 25

S53(1)(b) LPA - The declaration of express trust must be evidenced…

Answer 25

…in writing and must be signed.

Question 26

S53(2) LPA – there are no formalities with….

Answer 26

…implied trusts.

Question 27

Express trusts over land must satisfy s 53(1)(b) of the Law of Property Act 1925. The declaration of trust must be

Answer 27

…evidenced in writing and must be signed.

Question 28

Law of Property Act 1925, s 53(1)(a) The minimum formality requirement for the creation of equitable interests where no trust is involved (other than estate contracts) is that the interest be created…

Answer 28

..by signed writing.