Routledge Student Statutes

Statute

• Law of Property Act 1925, s 1

Key terms to be included

• Estate
• Interest
• Legal
• Equitable

Example Answer

Michael will have an equitable interest in land. As it is not a fee simple absolute in possession or a term of years absolute it cannot be a legal estate. See LPA 1925, s 1(1), (3).

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Statute

• Land Registration Act 2002, ss 4, 6, 7 and 27

Key terms to be included

• Qualifying estate
• Unregistered
• Legal estate
• Freehold
• Bare trust
• Disposition

Example Answer

On completion the legal title will be vested in Guy who must apply for first registration of his title at the Land Registry. Section 4(1) of the Land Registration Act 2002 requires the registration of the transfer of a ‘qualifying estate‘. Under s 4(2) a ‘qualifying estate‘ includes an unregistered legal estate which is a freehold estate in land. Thus the transfer of an unregistered freehold estate is a triggering event for first registration of title. If registration does not take place within two months, the legal title will revert back to David who will hold it on a bare trust for Guy (s 7).

If the title to the property was already registered at the Land Registry, the transfer to guy would be a registerable disposition and Guy would not become the legal owner until the transfer has been registered — see s 27. Until the transfer has been registered, David will still be the owner of the property.

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Statute

• Trusts of Land and Appointment of Trustees Act 2002, ss 5, 7, 14 and 15

Key terms to be included

• Trust of land
• Partition
• Trustees
• Beneficiaries
• Consent
• Intention
• Purpose
• Welfare
• Secured creditor

Example Answer

Sam and Polly are both legal owners of the property and they hold it on a trust for themselves as beneficiaries. This will be a trust of land (s 5 Trusts of Land and Appointment of Trustees Act 2002).

One of the trustee powers under the Trusts of Land and Appointment of Trustees Act 2002 is the power to partition the property (s 7). But the beneficiaries must agree to the partition (s 7(3)). Sam cannot go ahead with his plan without Polly's agreement.

Polly can apply to the court under s 14 of the Trusts of Land and Appointment of Trustees Act 2002 for an order setting out what is to happen to the house. The court will take into account the matters in s 15. These include the intention of the parties who created the trust, the purposes for which the land is held, the welfare of any minor who occupies or might reasonably be expected to occupy the property and the interest of any secured creditor.

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Statute

• Law of Property Act 1925, ss 1, 52 and 54

Statute

• Law of Property (Miscellaneous Provisions) Act 1989, s 1

Key terms to be included

• Estate in land
• Term of years absolute
• Made by deed
• Created by parol
• Consent
• Taking effect in possession

Example Answer

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1. Peter has a fixed term 10-year lease. It is a legal estate because it is a term of years absolute (s 1 of the Law of Property Act 1925) and is granted by deed (s 52 of the Law of Property Act 1925).
2. Amanda has a fixed term 2-year lease. It is a legal estate even though it is not granted by deed. Section 54(2) of the Law of Property Act 1925 provides an exception to s 52 of the Law of Property Act 1925. A lease not exceeding 3 years can be granted orally or in writing and it will still be a legal estate.
3. Alasdair has a fixed term 7-year lease is not a legal estate but only an equitable lease as the document granting the lease is not a deed because it does not comply with s 1 of the Law of Property (Miscellaneous Provisions) Act 1989. Alasdair has a 7-year equitable lease. However because Alasdair has moved into occupation of the flat and is paying £450 per month it is likely that he will also have an implied monthly periodic tenancy which is a legal estate.

Statute

• Landlord and Tenant Act 1985, ss 11, 13 and 14

Key terms to be included

• Implied covenant
• Keep in repair
• Structure and exterior
• Dwelling-house
• Seven years

Example Answer

Section 11 of the Landlord and Tenant Act 1985 implies a landlord repair covenant into all leases of residential property granted for a term of less than 7 years. It does not apply to a lease of a shop and it does not apply to a residential lease granted for more than 7 years.

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Statute

• Land Registration Act 2002, ss 27, 29, 33 and Sched 3 para 2

Statute

• Law of Property (Miscellaneous Provisions) Act 1989, s 2

Key terms to be included

• Disposition of a registered estate
• Operate at law
• Registration requirements
• Transfer
• Valuable consideration
• Registerable disposition
• Postponing
• Registered charge
• Unregistered interests which override
• Persons in actual occupation

Example Answer

The sale to Michael is a disposition of registered land. Michael is a purchaser for valuable consideration, and provided he has registered his ownership under s 27 of the LRA 2002, he will, under s 29 of the LRA 2002, take Inverness House subject only to any interest which is:

• a registered charge or
• the subject of a notice in the register or
• an overriding interest (i.e. falls within any of the paragraphs of Sched 3 of the 2002 Act)

Ian has an option to purchase. This is an estate contract provided that it complies with s 2 of the Law of Property (Miscellaneous Provisions) Act 1989. Could he protect it by way of entry of a notice on the charges register? There is a list in s 33 of the LRA 2002 of rights which cannot be protected by way of notice but an estate contract is not on that list, and therefore it could have been protected by notice. If Ian's right was not protected by notice, does he have an overriding interest? Under Sched 3 para 2 the rights of those in actual occupation are overriding, subject to the exceptions referred to in that paragraph. Whether Ian is in actual occupation depends on case law such as Abbey National v Cann. If Ian was in actual occupation, you would then need to decide whether his right failed to override because it failed to satisfy one of the conditions set out in paragraph 2, i.e.

• if asked about his interest before Michael bought the property he unreasonably failed to disclose it, or
• Michael did not know of his interest, and his occupation would not have been obvious on a reasonably careful inspection of the property

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Statute

• Law of Property (Joint Tenants) Act 1964

Key terms to be included

• Survivor
• Joint tenants
• Purchaser of the legal estate
• Solely and beneficially entitled
• Memorandum of severance
• Endorsed on or annexed to the conveyance
• Bankruptcy order

Example Answer

To ensure that she enjoys the protection of the Law of Property (Joint Tenants) Act 1964 Georgina must check the conveyance to Robert and Claire to ensure that no memorandum of severance has been endorsed on the conveyance. In addition, Georgina must ensure that the conveyance to her deed states that Robert is solely and beneficially entitled to the property.

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Statute

• Law of Property Act 1925, s 79

Key terms to be included

• Burden of covenants
• Covenantor
• Contrary intention
• Successors in title

Example Answer

An assignee of the lease is only liable for the breaches which he has committed and not for any breaches committed by those persons acquiring the lease after them. Section 79 of the LPA 1925 and the principle of continuing liability only applies to the original covenantors. Therefore Michael is not liable for a breach of covenant committed by Matthew.

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Statute

• Landlord and Tenant (Covenants) Act 1995, ss 5 and 11

Key terms to be included

• Tenant covenants
• Landlord covenants
• Released
• Whole of the premises demised
• Excluded assignment
• Breach of covenant

Example Answer

The general rule under s 5 of the Landlord and Tenant (Covenants) Act 1995 is that the original tenant is automatically released from continuing liability on the assignment of the lease. However s 11 of the Landlord and Tenant (Covenants) Act 1995 provides an exception to s 5. If the lease is assigned by the original tenant to his assignee in breach of covenant e.g. without the landlord's consent where there is a qualified covenant, the assignment becomes an excluded assignment under s 11. The original tenant remains liable for breaches of covenant committed by his assignee and will only be released from continuing liability on the next assignment of the lease which is not an excluded assignment.

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Statute

• Protection from Eviction Act 1977

Statute

• Law of Property Act 1925, ss 101 and 103

Key terms to be included

• Mortgage made by deed
• Power
• To sell
• Some interest
• Default
• Two months

Example Answer

A mortgagee has an immediate right to possession (Four-Maids Ltd v Dudley Marshall). This right may have been excluded until the mortgagors were in default, but as Jonathan and Kelly are in arrears with their payments it is almost certain to apply. The property consists of an occupied dwelling-house, and therefore a court order for possession will be required (Protection from Eviction Act 1977). The mortgagee has a right to sell the property without a court order once the conditions in ss 101 and 103 of the LPA 1925 are fulfilled. Under s 101, the power of sale arises if the mortgage is made by deed, and once the money is due or an instalment payable. Section 103 makes the power exercisable if, inter alia, there are two months arrears of interest. That condition would appear to be satisfied here.

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