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CREATION & TRANSFER: ESTATES & INTERESTS

[FLASH CARD 1 OF 4]
formalities required: create or transfer / legal estate or interest in land / legal or equitable
general rule: legal estates & interests / created & transferred / by deed
Legal estate
2 formalities create or transfer legal estate: 1. contract (involves creation an equitable interest) / & 2. transaction completed
when legal estate is created or transferred
general rule: deed required (s.52(1) Law of Property Act (LPA) 1925)
lease exception: less than 3 yrs / lease immediate in possession / for best rent (s.54(2) LPA 1925)
lease not within s.54(2) LPA 1925: 21 day lapse in possession (Long v Tower Hamlets LBC)
if lease falls within s.54(2) LPA 1925: assignment of that lease / deed not required (Crago v Julian)
valid deed: doc indicates is deed / parties' signatures witnessed & signed by witness / deliver parties deed (s.1 Law of
Property (Miscellaneous Provisions) (LPA) Act 1989 )
restrictive approach: need to show intent / extra status of deed (HSBC Trust Company v Quinn)
delivery: makes clear / intent to be bound / conditional delivery: in escrow / no intent to be bound immediately
delivery effective : if maker retains physical possession deed / but makes clear intends bound / difference between deed &
escrow time & circumstances when obligation can be enforced (Alan Estates v WG Stores)
conveyancing transactions: usually deliver deed transferring ownership as escrow
buyer not want to be bound until completion (buyer pays balance, parties move & seller transfers ownership) / seller not
want to be bound until buyer has paid purchase price
completion: if condition is satisfied / delivery occurs / parties bound by deed

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CREATION & TRANSFER: ESTATES & INTERESTS


[FLASH CARD 2 OF 4]
Interests in land
general rule: create or transfer / legal interest in land / deed required
equitable interests: created under trust / other (landowner enters restrictive covenant or estate contract) / formalities differ if
trust
express trusts: must satisfy s.53(1)(b) LPA 1925 / written declaration & signed
implied trusts: informally created by landowner / no formalities imposed (s.53(2) LPA 1925)
estate contract: create or convey estate or interest in land / formalities under s.2 LPA 1989: written / incorporate all terms /
signed
s.2(5) LPA 1989 exceptions: short lease under s.54(2) LPA 1925 / auction sale / regulated Financial Services and
Markets Act 2000 (regulated mortgage not exempt)
Exchanging contracts
seller's solicitor draws up 2 identical contracts / seller & buyer sign copy each / solicitors exchange / binding at exchange
(Commission for the New Towns v Cooper)
following exchange: seller owns legal estate / buyer acquires equitable interest
buyer specific performance remedy compel seller to perform contract for sale / if either party withdraws without good reason
breach of contract remedy
estate contracts include equitable leases: if no deed & term too long to fall within parol exception (s.54 LPA 1925) / if
formalities for estate contract followed equitable exists

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CREATION & TRANSFER: ESTATES & INTERESTS


[FLASH CARD 3 OF 4]
Proof of ownership
buyer requires seller prove ownership (title) legal estate
unregistered: seller provides deeds & conveyances / show unbroken chain of title / good root of title: documents for 15 yrs /
conveyances show third party rights (covenants & easements) / disadvantages: uncertainty of good title & lost or fraudulent
conveyances
Registration

registration of title: Land Registration Act 1925 / replaced by Land Registration Act (LRA) 2002
mirror principle: register reflect land ownership & third party rights / curtain principle: register not reflect equitable
interests under trusts / matter remains behind curtain / if buyer follows correct procedure (overreaching) can take free /
insurance principle: if register not accurate compensated
voluntarily register titles or compulsory first registration triggered when unregistered land sold
s.4 LRA 2002 triggers: transfer of qualifying estate / valuable or other consideration / creation of a protected first legal
mortgage / freehold estate / legal fee simple / s.6(4) LRA 2002: within 2 months
landowners apply first registered / district land registry / allocated title number to new register
estates capable registered / separate title number: legal fee simple absolute in possession & legal leases (more than seven
years)

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CREATION & TRANSFER: ESTATES & INTERESTS


[FLASH CARD 4 OF 4]
Registered titles
1st register property register: description of land & title plan / 2nd register proprietorship register: registered proprietors /

limitations on registered proprietors' powers deal freely (warnings: trusts & need to overreach) / 3rd charges register:
proprietary rights burden land (restrictive covenants)
title absolute: land registry assessed evidence / entirely satisfied as to owner
sale of registered title: completion of transfer / not transfer legal estate from sellers to buyers / buyers names must be
entered on register
dispositions completed by registration: s.27(2) LRA 2002: transfer of registered title / new lease for 7 + yrs / legal
easements by deed on property register of land benefitting from easement / mortgages (legal charges) by entry on the
charges register of burdened land
registered land conveyancing transaction: contract / completion / registration

Electronic conveyancing
Electronic Communications Act 2000 / power to allow electronic conveyancing / all stages electronic
s.91 LRA 2002: electronic document capable satisfying s.2 LPA 1989 (written contract) & s.52(1) LPA 1925 (deed needed
to effect grant or conveyance) / registration of transactions simultaneous with completion

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