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Flashcards in Interests in Land Deck (18)
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Interests in Land

Allow a person to do something in or over the land of another or prevent the landowner from doing something with his land.

Do not give any form of ownership.

Create proprietary rights - holder can transfer or sell interest to another or enforce interest v a new owner.



Do not give the licensee an interest in the land over which the licence is exercised.

Create a personal right

Cannot bind 3rd party successors.


What are the 3 legal interests in land under LPA 1925 S1(2)?

Legal Easements, e.g. rights of way, drainage


Rights of Entry


What formalities under LPA 1925 are required to create a legal interest?

Must be listed in LPA 1925 s1(2) as a legal interest

Must comply with the definition

Must be created by deed - s52 LPA 1925 (except implied easements)

Must be substantively registered (except implied easements)


What creates an equitable interest under s1(3) LPA 1925?

If an interest is inherently equitable – not listed as a legal interest in LPA 1925, s1(2)

Person creating the interest only holds an equitable estate in land

Failed legal interest

Must satisfy minimum requirement for creating an interest in land under LPA 1925, s53(1)(a)


Restrictive Covenants

An equitable interest which will burden/bind land belonging to the person who made the promise

e.g. A person may own a piece of land and promises with neighbour he will only use for residential purposes


Beneficial Interests Under a Trust

Where land is conveyed to a trustee in fee simple upon trust for a beneficiary.

Trustee is the legal owner.

Equitable interest passes to the beneficiary so they have right of enjoyment.

Must meet requirements under LPA 1925, s53(1)(b)


Estate Contracts

A contractual right to a legal estate.

Equity will order specific performance of a contract to create or transfer a legal estate.

- Contract to grant a lease
- Contract to sell freehold land
- Option to purchase
- Right of pre-emption
- Failed legal estates

Must comply with S2(LP(MP)A 1989


Option to purchase

Right given by the owner of land to another person to purchase land within a stated period of time.


Right of pre-emption

Right of first refusal. Owner of the land agrees to offer the land to the holder of the right, should the owner decide to sell the land in the future.


What are the formalities to transfer an equitable interest under LPA 1925, s53(1)(c)?

Valid contract - must comply with LP(MP)A 1989, s2

Specific performance must be available


What remedies are available under a legal interest?

Can seek damages as a right

Equitable remedies are also available


What remedies are available under an equitable interest?

Specific Performance


Rescission of a contract


*These remedies are discretionary, subject to equitable principles.



Order for someone either to put right a defect or refrain from committing a particular act


Rescission of Contract

Order restoring the parties to their pre-contractual or former position.



Right to correct a written instrument which mistakenly fails to record the true agreement made


Mercer v Liverpool, St Helen’s and South Lancs Railway Company [1903]

Legal rights bind the whole world, including successors in title


Re Nisbet and Potts’ Contract [1906]

Pre-1926, equitable interests were not automatically binding on a successor in title to the land affected

Where the successor was a bona fide purchaser for value of a legal estate without notice of the prior interest, he would take the land free from the interest.

Equity's Darling