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Flashcards in Estates in Land - Freehold Deck (14)
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1

Law of Property Act (LPA) 1925, s1(1)

2 major forms of land ownership capable of existing as legal estates

The freehold – fee simple absolute in possession
The leasehold – term of years absolute

2

Fee Simple Absolute in Possession

Fee – estate is inheritable
Simple – inheritable by any heir and not a restricted class
Absolute – estate not liable to end prematurely
In possession – fee simple owner has current right to use and enjoyment of property

To have the legal estate, a freeholder must have the fee simple, it must be absolute, and it must be in possession.

3

What are the 2 formalities required for transfer of the freehold title?

All conveyances of legal title must be by deed – LPA 1925, s52(1)

New owner must be registered on national Land Register – LRA 2002, ss4(1) and 27(1)

4

What is the 3-stage process for the sale of the Freehold Estate?

Exchange of Contracts – seller and buyer agree the price and other terms in a binding contract

Completion – seller transfers the property to buyer by deed
o Conveyance for unregistered land
o Transfer for registered land

Registration – buyer registered as new owner

5

Formalities for the sale of land on or after 27 September 1989 - LP(MP)A 1989, s2

o Contract must be in writing
o Must contain all expressly agreed terms
o Must be signed by both parties

6

Commission for the New Towns v Cooper (1995)

A contract may no longer be created through correspondence.

7

Firstpost Homes Ltd v Johnson (1995)

Typing or printing of name does not constitute signature

8

Contracts exempt from S2 formal requirements under LP(MP)A 1989, s2(5)

o Lease contract which does not exceed 3 years
o Contracts made at public auctions
o Certain contracts regulated by Financial Services and Markets Act 2000 which include some kind of interest in land
o Creation of resulting, implied or constructive trusts.

9

Wright v Robert Leonard Developments Ltd (1994)

If a mistake has been made re LP(MP)A 1989, s2 requirements, the equitable remedy of rectification can be used - S2(4) LM(MP)A 1989

In this case, the completion date was not included on the contract.

10

Proprietary effect of Contract

Effect of the contract is to pass the equitable interest in the land to the buyer.

Buyer acquires an 'estate contract' giving them rights to require specific performance of that contract.

Each bit of land is unique so damages for breach of contract would be an inadequate remedy.

11

Requirements for a valid deed

Must be attested by a witness

Must be delivered - acknowledgement person entering into deed intends to be bound by provisions. Bound by date signed.

12

Exceptions to requirement of a deed for Completion of a land contract - LPA s52(2)

Assents by personal representatives

Conveyances by operation of law – property goes to or vests in another automatically

13

Registration Requirements for Unregistered Land

In unregistered land, the legal title is transferred upon execution of the deed.

New owner must then register ownership of property within 2 months or reverts to seller – LRA 2002, ss 4 and 6

14

Registration Requirements for Registered Land

Legal title does not transfer until registration has taken place – LRA 2002, s27(2)(a)