TOPIC 1 - INTRODUCTION TO LAND
LAW THE MEANING OF LAND
ESTATES AND INTERESTS DEALINGS
WITH LAND EXAM QUESTIONS WITH
COMPLETE ANSWERS
Electronic conveyancing - Answer--section 91 or lra 2002 provides that, in order to
pave the way for the intro of electronic conveyancing, electronic docs will be capable
of satisfying the formality requirements for deeds and contracts set out above
-E-conveyancing was intended as a complete electronic system conveyancing from
the initial offer to purchase the registration of title but a statutory scheme has not
been introduced.
-in fact solicitors conduct much business online- the latest development is that from
26 may 2015 the law society and a commercial firm have introduced a national
electronic conveyancing portal
restrictive covenants - Answer-where a person covenants in a deed not to use his
land in a certain way or to do something on his land e.g. to keep fences in repair or
not to build on the land
-these have only ever been enforced in equity
what if the person is not a purchaser but has inherited or got the land as a gift? -
Answer--then that person takes the land with all equitable rights
overreaching - Answer-the process by which equitable rights that exist under a trust
of land are removed from the land and transferred to the money (called capital
money) that has been paid to purchase the land
-the effect is to give the purchaser automatic priority over equitable interests under a
trust
-restriction- can only take place if the transaction is made by at least 2 trustees or a
trust corporation
city of london building society v flegg (1987) - Answer--concerning the beneficial
interests in a trust of a land
-mr and mrs mb were the registered proprietors of a house, but over half the
purchase price had been raised by mr and mrs f (parents of mrs mb)
-were also to live at the house
-house was held on trust for all 4 of them
-mr and mrs mb then (others had no knowledge) raised 2 further charges over the
property and then defaulted on the repayments
-lender sought possession and it was held that the interests of the parents had been
overreached by the charges and that their rights now only existed in the proceeds of
a sale
, -the interests of beneficiaries in a trust of land are overreached if the transaction is,
in this case, entered into by 2 or more trustees
section 2(1) law of property act 1925 - Answer-- a conveyance to a purchaser of a
legal estate in land in land shall overreach any equitable interest of power affecting
the estate, whether he has notice thereof...'
-there are various instances where overreaching can take place, but the relevant one
here is section 2(1)ii: where the provisions of section 27 of the lpa 1925 regarding
the payment of capital money are complied with,i.e. the capital money is paid to at
least 2 trustees or a trust corporation.
kingsnorth finance co. ltd v tizard (1986) - Answer-Mr Tizard was the sole registered
proprietor of the matrimonial home in which his wife had a beneficial interest. The
marriage broke down and Mrs Tizard moved out but returned each day to look after
their twin children and would stay the night if her husband was away. Mr Tizard
mortgaged the property. On his application for the loan he stated that he was single.
He arranged for the inspection to take place on a Sunday when he knew his wife and
children would be out. The agent inspecting the property noted that there was
occupation by the children but he found no signs of occupation by the wife. Mr Tizard
had said that she had moved out many months ago and was living with someone
else close by.
Held:
Kingsnorth Finance took the property subject to the wife's interest. The discrepancy
between what Mr Tizard had stated on his application form and what the agent found
when he inspected the property put the lenders on notice. The lender had failed to
take reasonable steps to avoid being fixed with constructive notice. The inspection
was inadequate since it was at a pre-arranged time.
City of london building society v flegg (1987) - Answer--concerning- overreaching the
beneficial interests in the trust of a land
-mr and mrs mb were registered proprietors of a house
-over half purchase price had been raised by mr and mrs f (parents of mrs mb)
-also to live at the house
-house held on trust for all 4 of them
-mr and mrs mb (others had no knowledge) raised two further charges over the
property and then defaulted on the repayments
-lender sought possession and it was held that the interests of the parents had been
overreached by the charges
-and that their rights now only existed in the proceeds of a sale
-the interests of beneficiaries of a land are overreached if the transaction is, in this
case, entered into by two or more trustees
section 205 (1)xxi under lpa 1925 - Answer--a purchaser includes a chargee by way
of legal mortgage
LAW THE MEANING OF LAND
ESTATES AND INTERESTS DEALINGS
WITH LAND EXAM QUESTIONS WITH
COMPLETE ANSWERS
Electronic conveyancing - Answer--section 91 or lra 2002 provides that, in order to
pave the way for the intro of electronic conveyancing, electronic docs will be capable
of satisfying the formality requirements for deeds and contracts set out above
-E-conveyancing was intended as a complete electronic system conveyancing from
the initial offer to purchase the registration of title but a statutory scheme has not
been introduced.
-in fact solicitors conduct much business online- the latest development is that from
26 may 2015 the law society and a commercial firm have introduced a national
electronic conveyancing portal
restrictive covenants - Answer-where a person covenants in a deed not to use his
land in a certain way or to do something on his land e.g. to keep fences in repair or
not to build on the land
-these have only ever been enforced in equity
what if the person is not a purchaser but has inherited or got the land as a gift? -
Answer--then that person takes the land with all equitable rights
overreaching - Answer-the process by which equitable rights that exist under a trust
of land are removed from the land and transferred to the money (called capital
money) that has been paid to purchase the land
-the effect is to give the purchaser automatic priority over equitable interests under a
trust
-restriction- can only take place if the transaction is made by at least 2 trustees or a
trust corporation
city of london building society v flegg (1987) - Answer--concerning the beneficial
interests in a trust of a land
-mr and mrs mb were the registered proprietors of a house, but over half the
purchase price had been raised by mr and mrs f (parents of mrs mb)
-were also to live at the house
-house was held on trust for all 4 of them
-mr and mrs mb then (others had no knowledge) raised 2 further charges over the
property and then defaulted on the repayments
-lender sought possession and it was held that the interests of the parents had been
overreached by the charges and that their rights now only existed in the proceeds of
a sale
, -the interests of beneficiaries in a trust of land are overreached if the transaction is,
in this case, entered into by 2 or more trustees
section 2(1) law of property act 1925 - Answer-- a conveyance to a purchaser of a
legal estate in land in land shall overreach any equitable interest of power affecting
the estate, whether he has notice thereof...'
-there are various instances where overreaching can take place, but the relevant one
here is section 2(1)ii: where the provisions of section 27 of the lpa 1925 regarding
the payment of capital money are complied with,i.e. the capital money is paid to at
least 2 trustees or a trust corporation.
kingsnorth finance co. ltd v tizard (1986) - Answer-Mr Tizard was the sole registered
proprietor of the matrimonial home in which his wife had a beneficial interest. The
marriage broke down and Mrs Tizard moved out but returned each day to look after
their twin children and would stay the night if her husband was away. Mr Tizard
mortgaged the property. On his application for the loan he stated that he was single.
He arranged for the inspection to take place on a Sunday when he knew his wife and
children would be out. The agent inspecting the property noted that there was
occupation by the children but he found no signs of occupation by the wife. Mr Tizard
had said that she had moved out many months ago and was living with someone
else close by.
Held:
Kingsnorth Finance took the property subject to the wife's interest. The discrepancy
between what Mr Tizard had stated on his application form and what the agent found
when he inspected the property put the lenders on notice. The lender had failed to
take reasonable steps to avoid being fixed with constructive notice. The inspection
was inadequate since it was at a pre-arranged time.
City of london building society v flegg (1987) - Answer--concerning- overreaching the
beneficial interests in the trust of a land
-mr and mrs mb were registered proprietors of a house
-over half purchase price had been raised by mr and mrs f (parents of mrs mb)
-also to live at the house
-house held on trust for all 4 of them
-mr and mrs mb (others had no knowledge) raised two further charges over the
property and then defaulted on the repayments
-lender sought possession and it was held that the interests of the parents had been
overreached by the charges
-and that their rights now only existed in the proceeds of a sale
-the interests of beneficiaries of a land are overreached if the transaction is, in this
case, entered into by two or more trustees
section 205 (1)xxi under lpa 1925 - Answer--a purchaser includes a chargee by way
of legal mortgage
