HISTORY OF LAND – REVISION NOTES
Section 1(1) Law of Property Act 1925 – The only estates in land which are
capable of subsisting or of being conveyed or created at law are:
(i) An estate in fee simple absolute in possession (Freehold)
(ii) A term of years absolute (Leasehold)
The Concept of Trust
The legal owner of an estate may hold the estate “on trust” for another. The
beneficiary is not the legal owner, but had an equitable interest in the land.
- The legal owner needs to act in the beneficiary’s best interest;
- The legal owner should consult with the beneficiary before acting;
- The beneficiary has rights in personam – Against the trustee.
Overreaching
When trust property is sold, the interests of the beneficiaries can be transferred form
the property to the sale proceeds - The value of the property received by the
trustees.
The purchaser takes free form the beneficiaries’ interests, therefore, beneficiaries
can only sue trustees – remember that they only have rights in personam.
Rules of Overreaching
Only applies to equitable interests held under a trust. Other equitable interests
cannot be overreached.
Section 2 and 27 Law of Property Act 1925 – Purchaser must pay the money to 2
or more trustees in order for overreaching to happen.
Unregistered Land
No central record of titles;
Ownership, and incumbrances, evidenced by deeds;
Whenever land is sold, which interest over the land is the purchaser bound by?
Rules for legal interests
Rules for equitable interests
Protection of Third Party Interests Over Unregistered Land
Legal estates and interests bind the whole world act “in rem”.
Protection of equitable interests and estates depends on the type of interest / estate.
Equitable interests under a trust can be overreached (purchaser protection). Same
equitable interests can be registered as land by Charges (Only properly registered
they bind everyone)
Section 1(1) Law of Property Act 1925 – The only estates in land which are
capable of subsisting or of being conveyed or created at law are:
(i) An estate in fee simple absolute in possession (Freehold)
(ii) A term of years absolute (Leasehold)
The Concept of Trust
The legal owner of an estate may hold the estate “on trust” for another. The
beneficiary is not the legal owner, but had an equitable interest in the land.
- The legal owner needs to act in the beneficiary’s best interest;
- The legal owner should consult with the beneficiary before acting;
- The beneficiary has rights in personam – Against the trustee.
Overreaching
When trust property is sold, the interests of the beneficiaries can be transferred form
the property to the sale proceeds - The value of the property received by the
trustees.
The purchaser takes free form the beneficiaries’ interests, therefore, beneficiaries
can only sue trustees – remember that they only have rights in personam.
Rules of Overreaching
Only applies to equitable interests held under a trust. Other equitable interests
cannot be overreached.
Section 2 and 27 Law of Property Act 1925 – Purchaser must pay the money to 2
or more trustees in order for overreaching to happen.
Unregistered Land
No central record of titles;
Ownership, and incumbrances, evidenced by deeds;
Whenever land is sold, which interest over the land is the purchaser bound by?
Rules for legal interests
Rules for equitable interests
Protection of Third Party Interests Over Unregistered Land
Legal estates and interests bind the whole world act “in rem”.
Protection of equitable interests and estates depends on the type of interest / estate.
Equitable interests under a trust can be overreached (purchaser protection). Same
equitable interests can be registered as land by Charges (Only properly registered
they bind everyone)
