Jessica, Keith, Lionel and Margaret were friends. In 2012 they purchased the freehold
property "Cliff Cottage" for occasional use as a holiday home. The conveyance to
them contained an express declaration that they were beneficial joint tenants.
In 2015, Keith wrote letters to each of the others saying that he wanted the property
sold so that his share could be paid to him out of the proceeds of sale. His letters
were properly delivered. The property was not sold.
Keith died leaving all his property to Nicola.
Is the following statement True or False?
Keith's letter does constitute notice of severance.
T
True
F
False
Give this one a try later!
, the statement is True. Keith's letter constitutes notice of severance under
s36(2) LPA 1925 notwithstanding that the intention to sever is implied rather
than express (see Re Draper's Conveyance, as explained in Harris v
Goddard).
Which one or more of the following statements is or are correct?
A legal easement created over an unregistered title is automatically binding on
subsequent purchasers of that title.
When the Bilford Bank Trust Corporation, acting as trustee of the Smith Family trust,
sells land with unregistered title belonging to the trust, the purchaser will not be
bound by the interests of the Smith Family.
An equitable lease created over an unregistered title after 1925 is binding on a
purchaser unless he is Equity's Darling.
A purchaser of an unregistered title will not be bound by a pre-1926 restrictive
covenant if he is Equity's Darling.
Give this one a try later!
Statements A, B and D are correct. Legal rights generally bind the world in
the unregistered system. A trust corporation can give a valid receipt for
capital money arising on the sale of a trust property (ss 2 & 27 LPA 1925). A
post-1925 equitable lease is an estate contract and so should be registered
as a C(iv) land charge at the Central Land Charges Department to bind a
purchaser. Pre-1926 equitable interests (including covenants and
easements) still rely on the doctrine of notice ('Equity's Darling') for their
enforceability.
Is the following statement True or False?
A restrictive covenant is one that requires the expenditure of money or labour by the
covenantor.
T
True
,F
False
Give this one a try later!
the statement is False. A positive covenant requires expenditure or labour
by the covenantor. A restrictive covenant requires the covenantor to refrain
from a particular action.
Is the following statement True or False?
After exchange of contracts, the buyer has an equitable interest in the property.
T
True
F
False
Give this one a try later!
The statement is true. The exchange of contracts is the first stage in a
conveyancing transaction. At this stage the buyer only has an equitable
interest in the property. Legal title to the property does not pass until
completion has taken place and the legal formalities have been completed.
Tim holds Blackacre on trust for Bella and Barry. Tim sells Blackacre to Peter.
Which ONE of the following statements is correct?
If Blackacre has an unregistered title, Bella's and Barry's interest will only be binding
on Peter if it was registered as a C(iii) land charge at the Central Land Charges
Department.
If Blackacre has an unregistered title, Bella's and Barry's interest will not be binding on
Peter if he is a bona fide purchaser for value of the legal estate without notice of their
, interest (Equity's Darling).
If Blackacre has a registered title, Bella's and Barry's interest will be binding on Peter
because equitable interests under a trust are always overriding interests.
Whether the title is registered or unregistered, Bella's and Barry's interest will not be
binding on Peter because he overreached it when he purchased the property.
Give this one a try later!
B is correct. Peter has not satisfied the condition for overreaching because
he did not pay the money to all the trustees being a minimum of two or, if
appropriate, to a trust corporation. There was only one trustee, Tim. With
unregistered titles it is not possible to register equitable interests arising
under a trust at the Central Land Charges Department. This means that
when deciding whether or not the interest is binding on a purchaser in the
unregistered system we must ask whether or not the purchaser is Equity's
Darling. With a registered title, interests under a trust are only overriding
interests if the owner of that interest is in actual occupation of the property
(Schedule 3 paragraph 2 LRA 2002).
The freehold owner of a shop agreed to give exclusive possession of the shop to a
jewellery designer for a period of three years. The agreement, which contained all the
terms agreed between the parties, was contained in a document which only the
jewellery designer signed.
The jewellery designer paid a premium of £5,000 to the freehold owner and took
possession of the shop immediately afterwards. The document provided for the
jewellery designer to pay a monthly rent, which represented the market rent for retail
properties of that size in that area.
What is the nature of the jewellery designer's interest in the shop?
A legal fixed term lease for three years.
A legal periodic lease for a period of one month.
An equitable fixed term lease for three years.
An easement for a fixed period of three years.
A licence for a fixed term of three years.
property "Cliff Cottage" for occasional use as a holiday home. The conveyance to
them contained an express declaration that they were beneficial joint tenants.
In 2015, Keith wrote letters to each of the others saying that he wanted the property
sold so that his share could be paid to him out of the proceeds of sale. His letters
were properly delivered. The property was not sold.
Keith died leaving all his property to Nicola.
Is the following statement True or False?
Keith's letter does constitute notice of severance.
T
True
F
False
Give this one a try later!
, the statement is True. Keith's letter constitutes notice of severance under
s36(2) LPA 1925 notwithstanding that the intention to sever is implied rather
than express (see Re Draper's Conveyance, as explained in Harris v
Goddard).
Which one or more of the following statements is or are correct?
A legal easement created over an unregistered title is automatically binding on
subsequent purchasers of that title.
When the Bilford Bank Trust Corporation, acting as trustee of the Smith Family trust,
sells land with unregistered title belonging to the trust, the purchaser will not be
bound by the interests of the Smith Family.
An equitable lease created over an unregistered title after 1925 is binding on a
purchaser unless he is Equity's Darling.
A purchaser of an unregistered title will not be bound by a pre-1926 restrictive
covenant if he is Equity's Darling.
Give this one a try later!
Statements A, B and D are correct. Legal rights generally bind the world in
the unregistered system. A trust corporation can give a valid receipt for
capital money arising on the sale of a trust property (ss 2 & 27 LPA 1925). A
post-1925 equitable lease is an estate contract and so should be registered
as a C(iv) land charge at the Central Land Charges Department to bind a
purchaser. Pre-1926 equitable interests (including covenants and
easements) still rely on the doctrine of notice ('Equity's Darling') for their
enforceability.
Is the following statement True or False?
A restrictive covenant is one that requires the expenditure of money or labour by the
covenantor.
T
True
,F
False
Give this one a try later!
the statement is False. A positive covenant requires expenditure or labour
by the covenantor. A restrictive covenant requires the covenantor to refrain
from a particular action.
Is the following statement True or False?
After exchange of contracts, the buyer has an equitable interest in the property.
T
True
F
False
Give this one a try later!
The statement is true. The exchange of contracts is the first stage in a
conveyancing transaction. At this stage the buyer only has an equitable
interest in the property. Legal title to the property does not pass until
completion has taken place and the legal formalities have been completed.
Tim holds Blackacre on trust for Bella and Barry. Tim sells Blackacre to Peter.
Which ONE of the following statements is correct?
If Blackacre has an unregistered title, Bella's and Barry's interest will only be binding
on Peter if it was registered as a C(iii) land charge at the Central Land Charges
Department.
If Blackacre has an unregistered title, Bella's and Barry's interest will not be binding on
Peter if he is a bona fide purchaser for value of the legal estate without notice of their
, interest (Equity's Darling).
If Blackacre has a registered title, Bella's and Barry's interest will be binding on Peter
because equitable interests under a trust are always overriding interests.
Whether the title is registered or unregistered, Bella's and Barry's interest will not be
binding on Peter because he overreached it when he purchased the property.
Give this one a try later!
B is correct. Peter has not satisfied the condition for overreaching because
he did not pay the money to all the trustees being a minimum of two or, if
appropriate, to a trust corporation. There was only one trustee, Tim. With
unregistered titles it is not possible to register equitable interests arising
under a trust at the Central Land Charges Department. This means that
when deciding whether or not the interest is binding on a purchaser in the
unregistered system we must ask whether or not the purchaser is Equity's
Darling. With a registered title, interests under a trust are only overriding
interests if the owner of that interest is in actual occupation of the property
(Schedule 3 paragraph 2 LRA 2002).
The freehold owner of a shop agreed to give exclusive possession of the shop to a
jewellery designer for a period of three years. The agreement, which contained all the
terms agreed between the parties, was contained in a document which only the
jewellery designer signed.
The jewellery designer paid a premium of £5,000 to the freehold owner and took
possession of the shop immediately afterwards. The document provided for the
jewellery designer to pay a monthly rent, which represented the market rent for retail
properties of that size in that area.
What is the nature of the jewellery designer's interest in the shop?
A legal fixed term lease for three years.
A legal periodic lease for a period of one month.
An equitable fixed term lease for three years.
An easement for a fixed period of three years.
A licence for a fixed term of three years.
