You are consulted by Ben Noakes, who is buying Glebe Farm from Sam Richards. Title to the
farm is registered.
1. Sam’s sister Tara Richards, who paid the deposit for the farm from her savings when
Sam bought it, is refusing to move out.
2. When Sam bought Glebe Farm he took out a mortgage by deed with the Dalton
Building Society, secured over the land.
3. Six years ago, Sam signed a document giving Marian Edwards a right to exclusive
possession of a cottage in the grounds of Glebe Farm for ten years in return for a
premium of £20,000. Marian spends part of each year in the cottage and the rest at
her holiday home in Spain. Her son Jason occupies the cottage when she is away.
4. In 2020, Sam signed a deed with his neighbour, Ned Allen, in which Sam agreed that
he and his successors would never carry out building works to Glebe Farm without
first getting permission from Ned.
5. Two months ago Sam exchanged contracts with the owners of the neighbouring
riding stables, Peter and Suri Jones, to sell them part of one of his fields within Glebe
Farm. The transaction has not yet been completed, but his neighbours have fenced
in the land and put ponies in to graze.
Advise Ben as to the likely nature of the interests being claimed by these third
parties.
You should approach this question using the same structure that you adopted in Unit 2,
namely, take each third party right in turn and :
Identify the type of third party interest
Consider whether it is capable of being legal
Consider the formalities required for creation of the right
Apply to the facts and decide whether the interest is validly legal, equitable or
statutory
, Claimant Type of third Capable of Formalities Legal, equitable,
party interest being legal? required statutory
Tara Richards Implied trust by No. s1(3) LPA None. S53(2) LPA Equitable implied trust
reason of her 1925 1925
contribution to
deposit on
Sam’s
purchase.
Dalton Mortgage Yes. s1(2) By deed – s52 LPA Mortgage was created
Building LPA 1925 1925. by deed therefore
Society Deed must comply legal (1)
with s1 LP(MP)A
1989 – clear on the
face it is a deed,
signed, witnessed
and delivered.
Marian Lease Yes. s1(1) A legal lease of ten …Lease is a legal
Edwards LPA 1925 years should be lease for ten years.
created by deed –
s52 LPA 1925;
compliant with s1
LP(MP)A 1989 (as
above). On facts,
told Sam signed a
‘document’. If that
‘document’ was a …Lease is an
deed then… equitable lease (estate
contract)
If the ‘document’
was not a deed but
satisfied the
requirements of s2
LP(MP)A 1989 – in
writing, signed by
both parties and
incorporating all
agreed terms,
then…(2)
Ned Allen Restrictive No. s1(3) LPA Minimum On facts, the interest
covenant 1925 requirement for was created by deed,
creation of an so minimum
equitable interest is requirement satisfied.
signed writing – Interest is equitable
s53(1)(a) LPA 1925. restrictive covenant.
Mr & Mrs Estate contract No. s1(3) LPA Must comply with s2 Contracts exchanged
Jones 1925 LP(MP)A 1989 – in so assume formalities
writing, signed by complied with.
both parties and Equitable estate
incorporating all contract.
agreed terms.
farm is registered.
1. Sam’s sister Tara Richards, who paid the deposit for the farm from her savings when
Sam bought it, is refusing to move out.
2. When Sam bought Glebe Farm he took out a mortgage by deed with the Dalton
Building Society, secured over the land.
3. Six years ago, Sam signed a document giving Marian Edwards a right to exclusive
possession of a cottage in the grounds of Glebe Farm for ten years in return for a
premium of £20,000. Marian spends part of each year in the cottage and the rest at
her holiday home in Spain. Her son Jason occupies the cottage when she is away.
4. In 2020, Sam signed a deed with his neighbour, Ned Allen, in which Sam agreed that
he and his successors would never carry out building works to Glebe Farm without
first getting permission from Ned.
5. Two months ago Sam exchanged contracts with the owners of the neighbouring
riding stables, Peter and Suri Jones, to sell them part of one of his fields within Glebe
Farm. The transaction has not yet been completed, but his neighbours have fenced
in the land and put ponies in to graze.
Advise Ben as to the likely nature of the interests being claimed by these third
parties.
You should approach this question using the same structure that you adopted in Unit 2,
namely, take each third party right in turn and :
Identify the type of third party interest
Consider whether it is capable of being legal
Consider the formalities required for creation of the right
Apply to the facts and decide whether the interest is validly legal, equitable or
statutory
, Claimant Type of third Capable of Formalities Legal, equitable,
party interest being legal? required statutory
Tara Richards Implied trust by No. s1(3) LPA None. S53(2) LPA Equitable implied trust
reason of her 1925 1925
contribution to
deposit on
Sam’s
purchase.
Dalton Mortgage Yes. s1(2) By deed – s52 LPA Mortgage was created
Building LPA 1925 1925. by deed therefore
Society Deed must comply legal (1)
with s1 LP(MP)A
1989 – clear on the
face it is a deed,
signed, witnessed
and delivered.
Marian Lease Yes. s1(1) A legal lease of ten …Lease is a legal
Edwards LPA 1925 years should be lease for ten years.
created by deed –
s52 LPA 1925;
compliant with s1
LP(MP)A 1989 (as
above). On facts,
told Sam signed a
‘document’. If that
‘document’ was a …Lease is an
deed then… equitable lease (estate
contract)
If the ‘document’
was not a deed but
satisfied the
requirements of s2
LP(MP)A 1989 – in
writing, signed by
both parties and
incorporating all
agreed terms,
then…(2)
Ned Allen Restrictive No. s1(3) LPA Minimum On facts, the interest
covenant 1925 requirement for was created by deed,
creation of an so minimum
equitable interest is requirement satisfied.
signed writing – Interest is equitable
s53(1)(a) LPA 1925. restrictive covenant.
Mr & Mrs Estate contract No. s1(3) LPA Must comply with s2 Contracts exchanged
Jones 1925 LP(MP)A 1989 – in so assume formalities
writing, signed by complied with.
both parties and Equitable estate
incorporating all contract.
agreed terms.
