2. Estates and Interests in Land

Question 1

What are the two estates under the Law of Property Act 1925?

Answer 1

1. Freehold estate (fee simple absolute in possession)
2. Leasehold estate (term of years absolute)

Question 2

In terms of duration, what is the difference between a freehold and leasehold estate?

Answer 2

Freehold is for an uncertain / indefinite duration. Leasehold is for a fixed duration.

Question 3

Separate from the two legal estates do (1) legal interests or (2) equitable interests confer ownership of land?

Answer 3

No, they concern rights over land the legal estate of which is held by another

Question 4

What are the three types of legal interest?

Answer 4

1. Mortgage
2. Easements
3. Right of entry

Must be created by deed and registered

Question 5

What is a rentcharge?

Answer 5

An interest in land requiring the landowner to make a periodic payment in respect of land to the rentcharge owner, but is different to and cannot arise under a lease or tenancy

Question 6

What does the the rentcharge owner’s right of entry allow him to do?

Answer 6

Enter and take possession of the premises in the event of a default

Question 7

What is a common situation in which an equitable interest may arise by accident?

Answer 7

When parties attempt to create a legal interest by deed, but the formalities for a deed are not met

Question 8

For interests created after 1925 and interests which are not a beneficial interest under a trust, what is required for an equitable interest to be binding?

Answer 8

Notice. And other than the two examples, this requires the interest to be registered, otherwise there is no notice.

Question 9

What equitable interests must be protected by entry of notice in the charges register?

Answer 9

1. Restrictive covenants
2. Estate contracts
3. Easements granted for an uncertain term

Question 10

Is the deposit of title deeds as security for a loan enough to create an equitable mortgage, and why?

Answer 10

No, because:

1. Equity requires sufficient evidence in writing before an equitable mortgage can be created
2. A contract for property must be in writing, and in this situation there is no written agreement capable of enforcement

Question 11

What does the term concurrent interests describe?

Answer 11

The fact that a number of legal and equitable interests can exist in land at the same time

Question 12

In addition to the usual requirements of a contract, what two things are required for a contract for the sale of land to be valid?

Answer 12

1. In writing and include all the terms to which the parties have agreed
2. Be signed by all the parties or someone on their behalf

Question 13

What is a deed?

Answer 13

A written document used to create a legal interest or right in land, or transfer ownership of land, or by which an obligation relating to land is confirmed

Question 14

What three things are required for a deed to be valid?

Answer 14

1. In writing
2. Clearly intended to be a deed
3. Duly executed as a deed

Question 15

What are the two requirements for a deed to be duly executed?

Answer 15

1. Signed in the presence of an attesting witness
2. Delivered (says delivered/ dated)

Question 16

When is a deed delivered?

Answer 16

When the party expresses an intention to be bound by the deed

Question 17

What is required for a land contract’s variation be correctly executed?

Answer 17

must comply with the LP(MP)A 1989 s.2 formalities.
- applies whenever the variation relates to a material term in the contract (ie. completion date).

Question 18

What proprietary effect does an estate contract have?

Answer 18

creates an equitable interest, which counts specific perfomance as one of its available remedies (ie. ability to exercise option to purchase)
- only be recognized as such if claimant has clean hands.
- comply with section 2 of LP(MP) formalities

Question 19

What interests need to be entered unto the register to bind successors in title, and how are they protected?

Answer 19

Notice - appears on charges register.
- Used to protect easements/profits, equitable leases, restrictive covenants, home rights, and estate contracts.
- Can be entered into register without consent of the registered owner.

Restriction - protects trusts of land in proprietorship register.
- flags that overreaching might need to take place in order for a buyer to buy the land unemcumbered.

Question 20

What are interests in land will override on first registration of the land?

Answer 20

• legal leases of 7 years or less in duration;
• interest belonging to person in actual occupation
• legal easement or profit
• local land charge (unreg. land register)

Question 21

What are overriding interests?

Answer 21

Interest that bind purchasers without being protected by entry on the register.

• Implied legal easements
• Leases with a term of 7 years or less
• Interest of persons in actual occupation

Question 22

When does possessory title arise?

Answer 22

Arises either where:
2) the applicant’s title is based on adverse possession; OR
1) title cannot be proven because the title deeds have been lost or destroyed

Question 23

What is good leasehold title?

Answer 23

when the ‘superior’ freehold title cannot be guranteed, so the Registry cannot grant absolute leasehold title.

Question 24

What role does the doctrine of notice serve?

Answer 24

determines whether a buyer/mortgagee will be bound by:
- an overriding interest that has not been successfully overreached;
- restrictive covenants or equitable easements entered into pre-January 1st 1926.

Question 25

What effect does the doctrine of notice have?

Answer 25

equitable interest over land, which are protected without registration, will biding anyone except bona fide 3rd party purchaser of a legal estate for value.

Question 26

In what instance will a buyer not be bound by an overriding interest in land?

Answer 26

if they are a bona fide purchaser without notice of a legal estate.

(cf. equitable estate holder = be bound)

Question 27

What interests in unregistered land are capable of being legal interests?

Answer 27

Same as registered land - right of entry, mortgage (exception - puisne mortgage), easement.

both post and pre 1926

Question 28

What interests in unregistered land must be protected as a Land Charge at the Land Charges Registry?

Answer 28

Estate contract - Class C (IV)
Puisne mortgage - class C(I)
Post-1926
* Restrictive Covenant - class D(II)
* Easement for uncertain term - class D (III)

Question 29

What interest in unregistered land cannot be protected?

Answer 29

interest in a trust of land

Question 30

What are the three ways notice can be established?

Answer 30

• Actual - purchaser actually has knowledge of equitable interest.
• Imputed- notice received by buyer’s agent is imputed to the them.
• Constructive - reasonable to make further enquiries.

Question 31

Who will the doctrine of notice always bind?

Answer 31

donee (someone who is gifted or inherits the estate), even if they do not have notice of the interest.