Estates and Third Party Interests

Question 1

Which statute recognises a legal freehold?

Answer 1

s1(1)(a) LPA 1925

Question 2

Which statute recognises a legal leasehold?

Answer 2

s1(1)(b) LPA 1925

Question 3

What are the relevant third party interests capable of being legal?

Answer 3

Easements s1(2)(a) and Legal Mortgages s1(2)(c).

Question 4

Which statute states that if an estate or interest in land does not fall within s1(1) or (2), it can only take effect in equity?

Answer 4

s1(3) LPA 1925

Question 5

What must a tenant have to qualify as a leasehold estate?

Answer 5

(a) Exclusive possession, i.e. they are able to exclude anyone from the property including the landlord;
(b) Certainty of duration, i.e. the commencement date and the duration of the lease must be clearly ascertained at the start of the lease.

Question 6

What are the two requirements for ‘home rights’ to apply?

Answer 6

Per s30 of the FLA 1996:

(a) The parties are legally married (i.e. not divorced);
(b) The home is, has been, or is intended to be the matrimonial home.

Question 7

What is the definition of a license?

Answer 7

A permission to do something that you would not normally be allowed to do, i.e. they make lawful that which would otherwise be unlawful (Thomas and Sorrell). In other words, they create no proprietary interest in land.

Question 8

What are the two types of license?

Answer 8

Bare licenses and contractual licenses. A bare license is granted for no consideration (The Calgarth), whereas a contractual license is one supported by consideration and may give rise at common law and in equity to damages and injunctions respectively.

Question 9

What statute must express trusts over land satisfy?

Answer 9

s53(1)(b) LPA 1925, evidenced in writing and signed.

Question 10

What statute governs the formalities for the creation of estate contracts?

Answer 10

s2 LPMPA 1989: writing, signed and incorporating all terms. Exceptions are listed in s2(5) namely: (a) where a contract to grant a lease involves a parol lease under s54(2) and (b) where the contract is made in the course of a public auction.

Question 11

What statute governs the creation of non-trust, equitable interests (except estate contracts)?

Answer 11

s53(1)(a) LPA 1925: creation by signed writing.

Question 12

What statute governs the disposition of equitable interests?

Answer 12

s53(1)(c) LPA 1925: writing and signed by parties to the document.

Question 13

What statute governs the creation of equitable interests arising under trusts?

Answer 13

s53(1)(b) LPA 1925.

Question 14

When does ownership transfer with an unregistered title?

Answer 14

At the date of conveyance.

Question 15

With an unregistered title, the seller must produce title deeds proving ownership for how many years?

Answer 15

15 years per s44 LPA 1925 unless agreed otherwise.

Question 16

Where should applicable third party interests be listed in relation to unregistered land?

Answer 16

On the Land Charges Register against the name of the estate owner who has created the interest and whose land is bound by it (s3 LCA 1972).

Question 17

When are land charges seen to take effect?

Answer 17

When they are registered on the Land Charges Register, registration is deemed to constitute actual notice of the incumbrance from the date of registration (s198 LPA 1925).

Question 18

Which statute deals with the effect of non-registration of registrable land charges?

Answer 18

s4 LCA 1972, which states that purchasers can take the land free of the unregistered land charge.

Question 19

What are the five requirements to be considered equity’s darling?

Answer 19

(a) Buyer must be bona fide;
(b) Buyer must come within the definition of a purchaser, i.e. a person receiving property other than by operation of law;
(c) Buyer must have brought the property for value;
(d) The buyer must have taken the legal estate in the property;
(e) The buyer must have brought the property without notice (actual, constructive or imputed) that the equitable interest exists.

Question 20

A purchaser or their agent must make all inquiries and inspections that, in the circumstances, ought reasonably to have been made, otherwise the purchaser will not be considered equity’s darling.

Answer 20

Tizard

Question 21

What are the three main interests not includable on the Land Charges Register?

Answer 21

(a) Equitable interests arising under a trust;
(b) Most legal interests;
(c) Pre-1926 equitable interests.

Question 22

What are the three conditions required for overreaching?

Answer 22

(a) Buyer must be acquiring the legal estate in the property;
(b) Buyer must pay the purchase money to all the trustees; and
(c) There must be at least two trustees (or a trust corporation).

Question 23

When does a buyer take legal ownership of registered land?

Answer 23

At the point of registration in their name.

Question 24

Which statute states that any disposition that requires registration will not operate at law until such registration is completed?

Answer 24

s27 LRA 2002

Question 25

What are the three categories of rights that exist over registered titles?

Answer 25

(a) Registrable dispositions; (b) Interests affecting a registered estate (IAREs); and (c) Unregistered interests which override.

Question 26

What is the requirement for IAREs in order for them to bind a purchaser?

Answer 26

They must be the subject of a notice on the register (s32 LRA 2002).

Question 27

How should trust interests be protected in the case of registered land?

Answer 27

They should be recorded by a restriction in the proprietorship register of the owner's title (s40 LRA 2002).

Question 28

Where are the unregistered interests which override listed?

Answer 28

Schedule 3 to the LRA 2002.

Question 29

Protection of an interest under Sch 3, Para 2 (actual occupation) requires what?

Answer 29

That the interest is proprietary in nature (Strand Securities).

Question 30

A wife was in actual occupation because the phrase had to be interpreted as ordinary words of plain English, and there was physical presence.

Answer 30

Boland

Question 31

The actions of a claimant amouned to no more than preparatory steps leading to the assumption of actual residential occupation when she sent her son to move in furniture and put up curtains.

Answer 31

Abbey National v Cann

Question 32

A claimant was in actual occupation when she visited her property regularly whilst it was being renovated because she was occupying so far as it was possible to occupy it.

Answer 32

Rosset

Question 33

A woman was in actual occupation even though she had been absent for over a year in residential psychiatric care.

Answer 33

Link Lending Ltd v Bustard

Question 34

What amounts to actual occupation can depend upon the nature of the property itself.

Answer 34

Kling

Question 35

Although a woman's possessions were still in her house, she could not be said to be in actual occupation because she had decided that she was never going to live there.

Answer 35

Thompson v Foy

Question 36

What are the limitations to the protection offered by Sch 3, Para 2?

Answer 36

Considered in Thomas v Clydesdale Bank: (a) If enquiries were made, the person holding the interest before the sale must have disclosed their interest if they could reasonably be expected to do so; and (b) Occupation would have been obvious on a reasonably careful inspection; or (c) The purchaser had actual knowledge of the interest at the time of sale.