Unit 2.1 Flashcards
(22 cards)
Types of Property
Real property- freehold land
Personal property- chattels, ‘choses in action’ (intangible things recovered by bringing a claim in court), leasehold land
How does the owner of a legal title of land transfer it?
Must execute a deed according to s52(1) Law of Property Act 1925
What is a deed?
Satisfies s1 Law of Property (Misc) Act 1989
What does s1 Law of Property (Misc) Act 1989 cover?
The requirements of a deed:
Document stated to be a deed or is stated to be signed as a deed
Person making deed signs document in presence of a witness who also signs it
Where land is registered, the deed is Form TR1 issued by Land Registry
How do you transfer shares outside of the CREST system?
Transferor signs stock transfer form
Hands completed STF and share certificate to transferee
Transferee sends both documents to the company to be registered
NB: Legal transfer does not happen until transferee is registered
How do you transfer shares within the CREST system?
Transfers recorded electronically on instructions of the shareholder without need to sign stock transfer form
How do you transfer a chattel?
Passed by physical delivery of the asset to the transferee or by deed
What case concerns the transfer of chattels by a deed?
Jaffa v Taylor Gallery Ltd
The transfer of a picture to trustees was valid without physical delivery as deed setting up trust vest title in them
What does Milroy v Lord LJ Turner address?
Outlines the three ways a settlor may benefit another:
- Outright gift to the donee
- Transfer to trustees to hold on trust for the person to be benefited
- Declaration of self as trustee for the person to be benefited
What are the three ways a settlor may benefit another? What case outlines this?
Outright gift to the donee
Transfer to trustees to hold on trust for the person to be benefited
Declaration of self as trustee for the person to be benefited
Milroy v Lord LJ Turner
What are the similarities between outright gift and trust?
Transfer of the property happens via both
How does outright gift differ from trust?
Intention of the donor- gift intends the donee to benefit without strings
Settlor creating a trust directs the trustee to hold on trust for benefit of someone else
Benefits of making a gift?
Most are considered potentially exempt transfers (PETs)- if donor alive for 7yr+ afterwards, escapes tax
Requirements of a valid git
Mental capacity (Re Beaney)
Intention (crucial at time of transfer)
Certainty of subject matter
Property must be transferred to the donee in the correct manner
What is the ‘every effort’ test?
Milroy v Lord- where a donor has failed to transfer a legal title, the transfer may be regarded as complete in equity if the donor has put the property beyond his recall
What does Richards v Delbridge cover?
The court will not save an invalid gift by categorising it as a successfully created trust
Exception to Richards v Delbridge?
Strong v Bird
What is the rule in Strong v Bird?
On death of intended donor, gift becomes a perfect gift and the donee can claim the property in priority to the entitled to the rest of the estate which the donor has left on his death
For this to apply:
The donor intends to make an immediate death but it is invalid as he fails to comply with formality
Must be immediate, not one in the future
Intention to give must continue unchanged until donor’s death (Re Gonin)
What does Mascall v Mascall say?
Equity won’t assist a volunteer (someone who has received a gift)
What is the relationship between Pennington v Waine and Re Rose?
PvW is the narrow interpretation of Re Rose
How does promissory estoppel help a claimant?
Allows compensation to people who relied on a representation to their detriment (Pascoe v Turner)
What happened in Pascoe v Turner?
Wife decorated/ maintained house after husband wet with mistress and said she could have it. He then changed his mind, and as he had not transferred title into estranged wife’s name she wasn’t entitled to the house
