The Transfer & Creation of equitable rights- FS Flashcards
(16 cards)
What are the two types of ownership in land recognized in English law?
The two types of ownership are:
- Legal ownership – the right to control and manage the property (e.g., live in, sell, or lease it).
- Beneficial (equitable) ownership – the right to enjoy the benefits of the property (e.g., rent, sale proceeds).
What does legal ownership of land confer and where is it recorded?
Legal ownership gives the owner control and decision-making authority over the land, including the right to sell or use it. It is recorded on the title deeds at the land registry.
Can legal and beneficial ownership of land be held by different people?
Yes. Legal and beneficial ownership may be held by different individuals, such as when a trustee holds legal title on behalf of a beneficiary who holds the equitable interest.
What does beneficial ownership in land entitle a person to?
Beneficial ownership entitles the holder to:
- A share in rental income,
- A share in the proceeds of sale, or
- The right to occupy or enjoy the property, even without holding legal title.
Is beneficial ownership recorded at the land registry?
No. Only legal ownership is recorded at the land registry. Beneficial interests are not recorded in the title register, which means the register does not guarantee who holds the underlying beneficial interest
How is land held on trust for a minor who cannot legally own land?
When land is held for a minor (under 18), a trustee holds the legal title, while the minor holds the beneficial interest. The minor may enjoy the property or benefit from its income or sale proceeds.
What is the legal implication when one person is registered as the legal owner but others have contributed financially to the purchase?
The legal owner is the person registered at the land registry, but beneficial interests may be held by others based on financial contributions, creating a trust relationship not reflected in the legal title.
Does registration at the land registry guarantee that the legal owner is the sole beneficial owner?
No. Registration at the land registry only reflects legal ownership and does not guarantee that the legal owner also holds all or any of the beneficial interest.
What is the difference between legal ownership and beneficial (equitable) ownership of land?
Legal ownership involves control and is registered at the land registry. Beneficial ownership involves the right to enjoy the benefits (e.g., income or sale proceeds) and may not be recorded on the title but is recognized in equity.
What is the default position when two or more people are registered as legal co-owners of land?
The default position is that they are joint tenants, meaning they share both legal and beneficial ownership equally and automatically inherit the other’s share upon death through the right of survivorship.
How does a tenancy in common differ from a joint tenancy in terms of beneficial ownership?
Under a tenancy in common, each co-owner holds a distinct share in the property. Upon death, that share passes according to their will or estate, not automatically to the surviving co-owner.
What legal mechanism allows co-owners to divide beneficial interests in land while remaining joint legal owners?
Co-owners can sever the joint tenancy and declare themselves tenants in common, thereby dividing the beneficial interest into distinct shares, even though legal title remains joint.
What is the legal effect of survivorship under a joint tenancy?
Under survivorship, the entire beneficial interest automatically passes to the surviving joint tenant upon the death of the other. It does not pass to the deceased’s estate.
What are the formal requirements for disposing of an existing equitable interest in land?
Under Section 53(1)(c) of the Law of Property Act 1925, a disposition of an existing equitable interest must be:
1. In writing, and
2. Signed by the person disposing of the interest or their lawfully authorised agent.
Why must beneficial interests be clearly documented in writing when creating a tenancy in common?
Because beneficial interests are equitable rights, and under Section 53(1)(c), they must be disposed of or declared in writing and signed to be legally enforceable.
Does the land registry reflect beneficial ownership of a property?
No. The land registry records legal ownership only. Beneficial ownership is not shown in the registry and must be proven separately, often through a trust arrangement or written declaration.
