Flashcards in Interests in Land Deck (18)
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)
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)
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?
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 
Legal rights bind the whole world, including successors in title