Land Law structures:
Subject 1: Enforceability of 3rd party interests.
(1) Third party interests :
1. Beneficial interest/trust interest
2. Home right – Family Law Act right (marriage/civil)
3. Easement – right of way, right to light
4. Covenant (positive (you have to build a fence for example) /restrictive (you can’t make house
into shop on my land)
5. Lease (leases or licence)
6. Mortgage
7. Estate contract (contract for sale of an estate (freehold or leasehold) in land). NOT THE DEED.
(2) Decide whether right is capable of being legal .
S(1)1 and s1(2) LPA 25 : These can be legal :
- Lease
- Certain easements
- Mortgages
S1(3) LPA 25 :
If not listed above only capable of being equitable.
EXCEPT FAMILY LAW ACT which is ALWAYS statutory.
(3) Decide whether right has been created by correct formalities .
General principle : creation of legal interest
By deed s52 LPA 25
Check formalities
If not : Equitable interests ?
S53(1)(a) Signed writing
Or if estate contract : s.2 L(MP)A 89
- In writing
- Signed by/behalf both parties
- All agreed terms
, (4) UNREGISTERED LAND :
Is the interest registrable on the land charges register?
Look at s.2 of Land Charge Act :
- Class C (iv) : estate contract
- D(ii)L restrictive covenant
- D(iii) : equitable easement
- F : FLA/Home Right
= These have to be registered.
If registered —> binds buyer —> s.3 : Register against estate owners name + S.4 : Has to be
registered before completion of the purchase in order to bind
IF NOT : Is it legal or equitable ?
If legal : binds the world.
If equitable :
1. Is it an interest under a trust ?
YES : has buyer over reached ? Over reaching (applies to trust interest) : Enables a purchaser to buy a
property free of a trust interest.
Conditions for overreaching are :
- Purchaser must be purchasing a legal estate
- Must pay the capital money (sale proceeds) to all trustees (legal owners of property)
- Must be at least 2 trustees or a trust corporation.
Have to satisfy these conditions for trust not to apply to them.
If buyer has not overreached ….
….Bound unless Equity Darling :
- Bona fide (acting in good faith – no fraud)
- Purchaser (mortgage or lessee)
- Of the legal estate
- For value
- Without notice (Actual notice or Constructive notice : would have found about the trust
interest had they carried out reasonable research they would have known but if they havent
done that they are not equity’s darling. Or Imputed notice : same but for solicitor.)
2. Is it a non-interest which is not registrable on the Land Charges Register?
If so, ….Bound unless Equity Darling :
- Bona fide (acting in good faith – no fraud)
, - Purchaser (mortgage or lessee)
- Of the legal estate
- For value
- Without notice (Actual notice or Constructive notice : would have found about the trust
interest had they carried out reasonable research they would have known but if they havent
done that they are not equity’s darling. Or Imputed notice : same but for solicitor.)
(5) OR….. REGISTERED LAND
Schedule 3 Paragraoh 2:
If interest has not been registered, it may be possible for there to be an overriding interest under
Schedule 3 Paragraph 2 of Land Registry Act 2002. In order for this to be effective, X will have to
satisfy the following conditions:
1. Proprietary interest in the land;
2. Third party must be in actual occupation;
3. Occupation must be discoverable on a reasonable careful inspection of the buyer has actual
knowledge of the interest; and
4. If asked, 3rd party should disclose this interest if reasonable to do so.
Subject 1: Enforceability of 3rd party interests.
(1) Third party interests :
1. Beneficial interest/trust interest
2. Home right – Family Law Act right (marriage/civil)
3. Easement – right of way, right to light
4. Covenant (positive (you have to build a fence for example) /restrictive (you can’t make house
into shop on my land)
5. Lease (leases or licence)
6. Mortgage
7. Estate contract (contract for sale of an estate (freehold or leasehold) in land). NOT THE DEED.
(2) Decide whether right is capable of being legal .
S(1)1 and s1(2) LPA 25 : These can be legal :
- Lease
- Certain easements
- Mortgages
S1(3) LPA 25 :
If not listed above only capable of being equitable.
EXCEPT FAMILY LAW ACT which is ALWAYS statutory.
(3) Decide whether right has been created by correct formalities .
General principle : creation of legal interest
By deed s52 LPA 25
Check formalities
If not : Equitable interests ?
S53(1)(a) Signed writing
Or if estate contract : s.2 L(MP)A 89
- In writing
- Signed by/behalf both parties
- All agreed terms
, (4) UNREGISTERED LAND :
Is the interest registrable on the land charges register?
Look at s.2 of Land Charge Act :
- Class C (iv) : estate contract
- D(ii)L restrictive covenant
- D(iii) : equitable easement
- F : FLA/Home Right
= These have to be registered.
If registered —> binds buyer —> s.3 : Register against estate owners name + S.4 : Has to be
registered before completion of the purchase in order to bind
IF NOT : Is it legal or equitable ?
If legal : binds the world.
If equitable :
1. Is it an interest under a trust ?
YES : has buyer over reached ? Over reaching (applies to trust interest) : Enables a purchaser to buy a
property free of a trust interest.
Conditions for overreaching are :
- Purchaser must be purchasing a legal estate
- Must pay the capital money (sale proceeds) to all trustees (legal owners of property)
- Must be at least 2 trustees or a trust corporation.
Have to satisfy these conditions for trust not to apply to them.
If buyer has not overreached ….
….Bound unless Equity Darling :
- Bona fide (acting in good faith – no fraud)
- Purchaser (mortgage or lessee)
- Of the legal estate
- For value
- Without notice (Actual notice or Constructive notice : would have found about the trust
interest had they carried out reasonable research they would have known but if they havent
done that they are not equity’s darling. Or Imputed notice : same but for solicitor.)
2. Is it a non-interest which is not registrable on the Land Charges Register?
If so, ….Bound unless Equity Darling :
- Bona fide (acting in good faith – no fraud)
, - Purchaser (mortgage or lessee)
- Of the legal estate
- For value
- Without notice (Actual notice or Constructive notice : would have found about the trust
interest had they carried out reasonable research they would have known but if they havent
done that they are not equity’s darling. Or Imputed notice : same but for solicitor.)
(5) OR….. REGISTERED LAND
Schedule 3 Paragraoh 2:
If interest has not been registered, it may be possible for there to be an overriding interest under
Schedule 3 Paragraph 2 of Land Registry Act 2002. In order for this to be effective, X will have to
satisfy the following conditions:
1. Proprietary interest in the land;
2. Third party must be in actual occupation;
3. Occupation must be discoverable on a reasonable careful inspection of the buyer has actual
knowledge of the interest; and
4. If asked, 3rd party should disclose this interest if reasonable to do so.
