ux1 Flashcards
What are the two legal estates recognised by s 1(1) of the Law of Property Act 1925?
(a) An estate in fee simple absolute in possession;
(b) A term of years absolute.
How are the two legal estates recognised by s 1(1) described in the LPA 1925?
(a) An estate in fee simple absolute in possession;
Freehold.
The word ‘fee’ denotes that the estate is one that is capable of being inherited and the word ‘simple’ signifies that it may pass to any class of heir. The word ‘absolute’ indicates that this estate is not determinable or conditional on any event. It is not limited in any way. It is a legal estate in land absolutely. Lastly, the meaning of ‘in possession’ is entitlement to possession of the land now. It is not an entitlement to possession at some time in the future, dependent upon some event, but current entitlement.
(b) A term of years absolute.
Leasehold - To qualify as a leasehold estate, the tenant (ie the owner of the leasehold estate) must have exclusive possession of the property for a fixed and certain duration.
What are two of the legal interests described in s 1(2) of the Law of Property Act 1925?
(2) The only interests or charges in or over land which are capable of subsisting or of being conveyed or created at law are –
(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; …
(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).
Easements created for an uncertain period of time do not satisfy s2(1)(a) of what?
Law of Property Act 1925. Therefore they fall under s(1)(3)
s 30 of the Family Law Act 1996 - Although spouses may live together in the matrimonial home, it may be that only one of them owns the legal estate, i.e. the conveyance was in the name of only one of them. Parliament has given the non-owning spouse certain rights (now known as ‘home rights’), principally a right of occupation as against the other spouse. What are the conditions?
This right arises provided that:
a) The third party claiming the home rights must not be the legal owner of the land
(b) the parties are legally married (not divorced) or be in a civil partnership with the legal owner
(c) the home is, has been or is intended to be the matrimonial home.
(d) the legal owner must be alive and the marriage partnership must still be continuing.
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.
Occupation is not a criterion.
FLA does not give you a proprietary interest - What you have instead is a right to occupy the matrimonial home, but you don’t have any rights in the land itself.
Section 1(3) of the Law of Property Act 1925 states that all other estates, interests and charges in or over land take effect as equitable interests. What does this include?
Equitable interests under express or implied trusts (resulting or constructive)
Restrictive covenants and
easements for an uncertain period, as well as
estate contracts.
Generally, to be valid, all legal estates and interests must be created by…
by deed - (Law of Property Act 1925, s 52).
An important exception to the general rule that all legal estates and interests must be created by a deed (LPA 52(2)(d)) is a lease that is not required by law to be made in writing. This is known as a….
parol lease.
What are the conditions of a parol lease?
Where the transaction involves the grant of a lease for a term not exceeding three years, the lease can be granted without a deed and can even be granted orally.
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. Note that payment of a ‘fine’ here means the tenant paying the landlord a lump sum at the beginning of the lease in return for paying a lower rent during the term of the lease.
s 54(2) of the Law of Property Act 1925 applies only to the creation of a lease – not the sale.
What makes a deed valid according to the Law of Property (Miscellaneous Provisions) Act 1989?
To be valid a deed must
(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.
Note that delivery does not have to be physical delivery. It may be a matter of intention only, evidenced by a signatory executing the deed with the intention that he will be bound by it.
How are legal estates or interests transferred?
For a dispositions of a legal estate to be valid at law s 52 of the Law of Property Act 1925 states that a deed is required to transfer a legal estate or interest.
How do you create an express trust over land?
Express trusts over land must satisfy s 53(1)(b) of the Law of Property Act 1925. The declaration of trust must be evidenced in writing and must be signed.
How do you create an implied trust over land?
Implied trusts can also come into existence without the need for formalities (s 53(2) of the 1925 Act). This is because they arise simply by virtue of circumstances, for example when a non legal owner makes a financial contribution to a property.
What formalities have to take place in order to create a restrictive covenant? i
Restrictive covenants are usually created when land is sold and as the sale of land requires a deed, the restrictive covenant will usually be contained in a deed as part of the sale transaction.
The formalities required for the creation of a restrictive covenant are signed writing (LPA 1925, s 53(1)(a)). A deed is not required to create a valid equitable interest, but a valid deed will automatically comply with the requirement of signed writing; therefore, a restrictive covenant contained in a deed is a valid equitable interest. (Having a deed in place does NOT make it legal).
What formalities are required to create an equitable easement (i.e. one not capable of being legal under s 1(2)(a) of the Law of Property Act 1925?)
The formalities required to create an equitable easement are that it should be created in writing, signed by the person creating it (LPA 1925, s 53(1)(a)).
