Complete structure on how to answer problem questions on:
1) Registration
2) Adverse Possession
3) Leases and Licences
4) Easements
5) Co-ownership and trusts of land
6) Trusts of the family home
1. Identify the estate /interest
2. Is the interest capable of existing at law?
• S1 LPA 1925:
• LPA 1925 s1(1) – Two estates (Freehold and Leasehold)
• LPA 1925 s1(2) – Six interests
• If not included in s1(1) or s1(2), it is capable of existing in equity s1(3).
3. Is it actually legal?
• Must comply with the formalities and be registered.
4. How was the estate / interest created?
• Must be a deed: s52 LPA 1925
5. Are formalities required and complied with?
• It is a deed when it complies with the formalities of s1 LP(MP)A 1989
• Exceptions:
• S52 (2)(d) LPA 1925 – leases and tenancies not required to be in writing.
• S54 LPA1925 – Leases by parol (not exceeding 3 years + at the best rent) do not
require a deed
• Exchange of contracts compliant with the LP(MP) Act 1989 s2. – transfer of a
legal estate.
• A lease under 3 years is legal as long as it complies with s54(2) LPA 1925.
• In equity: the formalities are set in s53(1)(b) LPA 1925
• S2(1) LP(MP)A 1989 – Must be in writing
• Exceptions:
• S53 (2) LPA 1925 – resulting, implied or constructive trusts (can be created
without writing but interest should be evidences and bear registered proprietor’s
signature).
• The deed in transfer of legal estates is the completion of the TRI form.
6. Is the estate / interest legal or equitable?
7. Is it protected? (Registration)
• Dispositions required to be registered to operate at law are set out in s27 LRA
2002.
• If not registered, they exist in equity.
• S7 LRA 2002 – If registration is not completed, the interest is retained back from
the original owner and the purchaser gets the equitable estate.
• S8 LRA 2002 – The process can start all over again.
, 8. Notice
• S28 LRA 2002 – the priority of an interest of a registerable estate or charge is not
affected by a disposition.
• If completed by registration (s27), the registrar will enter a s32 notice on the
register.
• S29(2)(a)(i) – therefore, the priority of the interest is protected.
• S29 LRA 2002 – Not bound by an unprotected interest – only bound by protected
or overriding interests.
• The priority of the interest is protected, if the interest is protected by notice
s32 or schedule 3.
• IF the transfer of the estate is made for valuable consideration and completed by
registration, then the buyer will be bound as it is protected by s32 notice.
• Exceptions from protection by notice
• S33 – interest under a trust, lease less than 3 years and a restrictive covenant.
• In equity:
• Equitable interests are not excluded by s33; they can be protected by s32 notice.
• [Applying for a s32 notice:
• Agreed notice s34(2)(a) LRA 2002 for registered proprietor and third party.
• Unilateral notice s34(2)(b) LRA 2002 for registered proprietor.]
• Schedule 3 LRA 2002 – Leases shorter than 7 years are not registrable
dispositions and are overriding interests – do not need notice to be binding.
• Exceptions:
• S4 LRA 2002 – leases being possessed after 3 months of the day of grant + lease
over unregistered land.
• Schedule 3 Part 3 LRA 2002 – legal easements are capable of being overriding if
after inspection is obvious + if exercised for a year after the disposition.
• Schedule 3 Part 2 LRA 2002 – interests of persons in actual occupation at the time
of disposition are overriding.
• Exceptions:
• Section 2 – interest not disclosed when reasonably expected to have been +
interest of someone in actual occupation that is not obvious + future lease after 3
months of the disposition.
• The claimant must have:
• A) An interest in the property
• B) The interest must exist at the time of the disposition
• C) They must be in actual occupation
• D) And must not be included in the exceptions
• + cases
9. Overreaching
• Paying two trustees to overreach overriding interests.
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