Equity with land
1. Do you have a property right?
2. How did you acquire this right?
3. Is there a defence
• Equity is relevant to all of these questions
• We may have equitable rights
• Equity courts trying to change the overly rigid common law rules
• 2 courts have fused now – today when you look at High court, everything is together
(different divisions)
• Equity- concerned with unconscionable behaviour – promise on a property right, -
unconscionable to let them off the hook with this right.
Trust of land:
• What is a ‘trust’? – someone (A) who holds property absolutely but crucially is
holding the property for the benefit of another (B), someone usually holds the trust
(C)- say C has 100,000, gives it to A but for the purpose that they spend it on B
(holding trust). So A can’t spend it on what they want, only can spend in the
accordance of the trust.
• Equity here is about protecting the relationship, making sure the trustee does what
they’re supposed to do. – common law would say A has the money its fine, equity
would come in and say ‘no that’s not what was supposed to happen’
• Land – Legal owner – A is holding this house for the benefit of B, trustee of legal
property. If A sells the property to C, B when therefore be the beneficiary and get
the money. Trust- obligation to administer the trust in favour the beneficiary rather
than yourself.
• Breach of trust – A supposed to ask B whether they can sell but doesn’t. Can be
sued.
• No trust where one person buys a house with no obligation – A would not have an
obligation to themselves.
• Must be an element of obligation for a trust (whether same or different people)
Acquiring rights as a co-owner:
• A&B decide to buy a house = legal owners and trustees for yourself.
Equitable rights that mirror existing legal rights & vice versa:
• If you don’t meet all formalities, you wont have a legal lease but you will have an
equitable lease
• You also have a category of rights that don’t mirror legal rights.
Relation to acquisition of rights
• Walsh v Lonsdale
1. Do you have a property right?
2. How did you acquire this right?
3. Is there a defence
• Equity is relevant to all of these questions
• We may have equitable rights
• Equity courts trying to change the overly rigid common law rules
• 2 courts have fused now – today when you look at High court, everything is together
(different divisions)
• Equity- concerned with unconscionable behaviour – promise on a property right, -
unconscionable to let them off the hook with this right.
Trust of land:
• What is a ‘trust’? – someone (A) who holds property absolutely but crucially is
holding the property for the benefit of another (B), someone usually holds the trust
(C)- say C has 100,000, gives it to A but for the purpose that they spend it on B
(holding trust). So A can’t spend it on what they want, only can spend in the
accordance of the trust.
• Equity here is about protecting the relationship, making sure the trustee does what
they’re supposed to do. – common law would say A has the money its fine, equity
would come in and say ‘no that’s not what was supposed to happen’
• Land – Legal owner – A is holding this house for the benefit of B, trustee of legal
property. If A sells the property to C, B when therefore be the beneficiary and get
the money. Trust- obligation to administer the trust in favour the beneficiary rather
than yourself.
• Breach of trust – A supposed to ask B whether they can sell but doesn’t. Can be
sued.
• No trust where one person buys a house with no obligation – A would not have an
obligation to themselves.
• Must be an element of obligation for a trust (whether same or different people)
Acquiring rights as a co-owner:
• A&B decide to buy a house = legal owners and trustees for yourself.
Equitable rights that mirror existing legal rights & vice versa:
• If you don’t meet all formalities, you wont have a legal lease but you will have an
equitable lease
• You also have a category of rights that don’t mirror legal rights.
Relation to acquisition of rights
• Walsh v Lonsdale
