Third Party Interests

Question 1

Legal Easement

Definition

Answer 1

A right attached to one piece of land and imposes a corresponding burden on another piece of land

Question 2

Legal Easement

Capable of being legal?

Answer 2

Yes - if the interest is equivalent to an estate in fee simple absolute in possession or term of years absolute
s.1(2)(a) LPA 1925

Question 3

Legal Easement

Formalities Required

Answer 3

Created by deed under s.52 LPA 1925
Deed must satisfy s.1(3) LP(MP)A 1989
- signed, witnessed and delivered as a deed

Question 4

Legal Easement

Enforceability in unregistered system

Answer 4

Not registrable
As its legal, it binds buyer
- Legal interests bind the world

Question 5

Legal Easement

Enforceability in registered system

Answer 5

s. 27 LRA

- Binds purchaser upon registration

Question 6

Equitable Easement (estate contract)
Definition

Answer 6

Same as legal easement, but the correct formalities required to grant a legal easement is not satisfied

Question 7

Equitable Easement (estate contract)
Formalities required

Answer 7

Contract to be made by signed writing, incorporating all expressly agreed terms and signed by each party
s.2 LP(MP)A 1989

Question 8

Equitable Easement (estate contract)
Enforceability in unregistered system

Answer 8

Registrable on the LCR
Class D(iii) land charge 

If registered - binds buyer
If not, buyer takes free of interest

Question 9

Equitable Easement (estate contract)
Enforceability in registered system

Answer 9

s. 32 LRA - Notice
- Will not bind buyer unless they are subject of a notice by date of registration of the transfer to the purchaser (s. 29 LRA)

Question 10

Equitable Easement (uncertain duration)
Definition

Answer 10

Easement where grant is of an uncertain duration

Question 11

Equitable Easement (uncertain duration)
Formalities Required

Answer 11

In writing, signed by the person granting the easement or signed by his agent lawfully authorised

• in writing, by will or by operation of law
  s. 53(1)(a) LPA 1925

Question 12

Equitable Easement (uncertain duration)
Enforceability in unregistered system

Answer 12

Registrable on the LCR
Class D(iii) land charge 

If registered - binds buyer
If not, buyer takes free of interest

Question 13

Equitable Easement (uncertain duration)
Enforceability in registered system

Answer 13

s. 32 LRA - Notice
- Will not bind buyer unless they are subject of a notice by date of registration of the transfer to the purchaser (s. 29 LRA)

Question 14

Estate Contract

Definition

Answer 14

Contract to sell/grant an estate in land

Equitable interest

Question 15

Estate Contract

Formalities

Answer 15

Contract to be made by signed writing, incorporating all expressly agreed terms and signed by each party
s2 LP(MP)A 1989

Question 16

Estate Contract

Enforceability in unregistered system

Answer 16

Registrable on LCR
Class C(iv) Land Charge

Question 17

Estate Contract

Enforceability in registered system

Answer 17

s.32 LRA - Notice
- Will not bind buyer unless they are subject of a notice by date of registration of the transfer to the purchaser (s. 29 LRA
If not registered, can be an overriding interest

Question 18

Lease (Legal interest)

Definition

Answer 18

An interest which gives the person exclusive possession of the land for a fixed period of time

Question 19

Lease

Formalities Required

Answer 19

Created by deed under s52 LPA 1925

Deed must satisfy s1(3) LP(MP)A 1989 - signed, witnessed and delivered as a deed

Question 20

Lease

Enforceability in unregistered system

Answer 20

NOT registrable

Legal interests bind the world

Question 21

Lease

Enforceability in registered system

Answer 21

s27 LRA
- Binds purchaser upon registration - making it legal

Must be for a term of more than 7 years OR disposition of a (currently unregistered) lease with more than 7 years to run.

Question 22

Parole Lease (legal interest)
Definition

Answer 22

Same definition as a normal lease

Question 23

Parole Lease

Formalities

Answer 23

Must fulfil s54(2) LPA 1925:

• not exceeding 3 years
• takes effect immediately
• granted at best rent which can be reasonably obtained without taking a fine

Question 24

Parole Lease

Enforceability in unregistered system

Answer 24

NOT registrable

Legal interests bind the world

Question 25

Parole Lease | Enforceability in registered system

Answer 25

Automatically an overriding interest | Cannot register as a legal interest

Question 26

``` Equitable Lease (not legal interest) Definition ```

Answer 26

A lease that has not been granted using the correct formalities

Question 27

Equitable Lease | Formalities

Answer 27

Contract to be made by signed writing, incorporating all expressly agreed terms and signed by each party s.2 LP(MP)A 1989

Question 28

Equitable Lease | Enforceability in unregistered system

Answer 28

``` Class C(iv) land charge under s2(4) LCA 1972 Will bind only if it was registered as a land charge before date of conveyance (s.4(6) LCA 1972) ```

Question 29

Equitable Lease | Enforceability in registered system

Answer 29

P will take estate for valuable consideration, free of interests, unless: - equitable lease is protected by notice on register of title - it is capable of taking effect as an overriding interest

Question 30

``` Express Trust (equitable interest) Definition ```

Answer 30

Any trust in which some or all of the trust property is land. Expressly made by writing

Question 31

Express Trust | Formalities

Answer 31

Declaration of trust - proved by signed writing who is able to declare the trust or by will - Can be oral, but needs written evidence to be enforceable

Question 32

Express Trust | Enforceability in unregistered system

Answer 32

NOT registrable | Trust interest binds buyer unless they have overreached or he is equity's darling

Question 33

Express Trust | Enforceability in registered system

Answer 33

Can be recorded by a restriction (s40 LRA) in the proprietorship register of owners title Interest can be overreached (s27(2) LPA)

Question 34

Implied Trust | Formalities Required

Answer 34

No formalities required under s53(2) LPA 1925

Question 35

Implied Trust | Enforceability in unregistered system

Answer 35

NOT registrable | Trust interest binds buyer unless they have overreached or he is equity's darling

Question 36

Implied Trust | Enforceability in registered system

Answer 36

Can be recorded by a restriction (s40 LRA) in the proprietorship register of owners title Interest can be overreached (s2 + s27 LPA)

Question 37

``` Restrictive Covenant (equitable) Definition ```

Answer 37

A promise not to use land in a certain way

Question 38

``` Restrictive Covenant (equitable) Formalities Required ```

Answer 38

In writing, signed by the person granting the easement or signed by his agent lawfully authorised (in writing/by will/by operation of law) under s53(1)(a) LPA 1925 Usually created by deed (s52 LPA 1925)

Question 39

``` Restrictive Covenant (equitable) Enforceability in unregistered system ```

Answer 39

Registrable on LCR - Class D(ii) Land Charge If registered, binds buyer. If not, buyer takes free of interest.