Term
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Definition
| A legal estate cannot be held by a child (U18) |
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Term
| Which part of which statute states that a legal estate cannot be held by a child? |
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Definition
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Term
| What does the word 'fee' in 'fee simple absolute in posession' mean? |
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Definition
| Fee denotes that the estate is inheritable |
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Term
| What does the word 'absolute' in 'fee simple absolute in posession' mean? |
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Definition
| Absoulte signifies that the estate is not liable to end prematurely e.g. it is not determinable or subject to a condition (However, not that by a special exception in s7(1) LPA 1925, a conditional fee simple is treated as a fee simple absolute) |
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Term
| What does the word 'in posession' in 'fee simple absolute in posession' mean? |
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Definition
| In posession denotes that the fee simple owner has a current right to use and enjoyment of the property (as opposed to a fee simple in remainder or reversion) |
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Term
| Under what circumstances is the fee simple deemed to be 'in posession'? |
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Definition
| If the estate owner is in receipt of rents and profits from the lans, or has the right to receive them (e.g. where landlord leases out the property, he is in receipt of rents) |
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Term
| What are the different ways in which a freehold can be transferred to a new owner? |
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Definition
| By sale, gift, will, or by operation of law (e.g. in death or bankruptcy) |
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Term
| What are the two formalities which are required for the TRANSFER of a freehold title? (transfer not sale) |
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Definition
i) A deed
ii) The new owner must be registered on the national land register before he gets legal title. |
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Term
| Which part of which act states that all convayences of legal freehold title must be by deed? |
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Definition
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Term
| Are there any exceptions to the rule that all convayences of the legal title to a freehold must be done by deed? |
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Definition
YES - s52(2) LPA 1925
(long list of random things that probably wont come up in the exam) |
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Term
| Which part of which Act states that the new owner of a freehold must be registered on the national land register before they acquire the legal title? |
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Definition
| s4(1) AND s27(1) Land Registration Act 2002 |
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Term
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Definition
| All conveyances of legal title must be done by deed |
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Term
| s4(1) and s27(1) LRA 2002 |
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Definition
| the new owner of a freehold must be registered on the national land register before they acquire the legal title |
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Term
| What is the three-stage process for the sale of a freehold estate? |
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Definition
i) Exchange of contracts - the buyer and seller agree the price and other terms in a binding contract
ii) Completion - the seller transfers the property to the buyer by deed. (s52(1) LPA)
iii) Registration - the buyer registers as the new owner |
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Term
| In the case ofselling the freehold estate to unregistered land, at what point does the legal title pass to the buyer? |
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Definition
| On completeion - although the sale will trigger a legal requirement to register the land (and if the land is not registered within 2 months, th legal title will revert to the seller, who holds it on bare trust for the buyer) (w.r.t registered land, legal title passes when the new owner registers on the land register) |
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Term
| In the case of selling the freehold estate on registered land, at what point does the legal title pass to the buyer? |
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Definition
| When the buyer registers on the national land register (w.r.t unregistered land, the legal title passes after completion, after the conveyance - although the sale will trigger a legal requirement to register the land) |
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Term
| W.r.t unregistered land, when the seller transfers the property to the buyer, this is done by way of a... |
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Definition
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Term
| w.r.t registered land, when the seller transfers the property to the buyer, this is done by way of a... |
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Definition
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Term
| At what point do the buyer and seller become committed to the sale? |
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Definition
| When there is the formal exchange of contracts. |
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Term
| What part of what Act provides the formalities which must be adhered to in a contract for the sale of land (made before 26 September 1989) |
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Definition
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Term
| What part of what Act provides the formalities which must be adhered to in a contract for the sale of land (made on or after 27 September 1989) |
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Definition
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Term
| According to s40 LPA 1925, what are the formal requirements for the validity of contracts for the sale of land? (ONLY APPLICABLE TO PRE-26 SEPTEMBER 1989) |
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Definition
| There are no formal requirements for VALIDITY. e.g. even an oral contract would be valid.... HOWEVER, SUCH CONTRACTS ARE ONLY ENFORCEABLE IF... |
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Term
| According to s40 LPA 1925, although there are no requirements for a contract for the sale of land to be valid, there are some requirements for a contract for the sale of land to be enforceable. What are they? (NOTE - this only applies to cotnracts made pre-26/09/1989) |
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Definition
Contracts (pre 26/09/1989) for the sale or other disposition of land or any interes in land are only enforceable if ONE of the following conditions is satisfied:
i) The contract is in writing and signed by the party against whom the cotnract is being enforced
ii) There is an existing written record of an oral contract in the form of a memorandum or note. The document evidencing the existence of the cotnract must be signed by the party against whom the contract is being enforced.
iii) The contract is oral, but the party seeking to enforce the contract has done some act of part performance. |
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Term
| Davies v Sweet [1962] - on enforceable pre-1989 contracts |
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Definition
EXAMPLE OF WRITTEN EVIDENCE OF AN ORAL CONTRACT - A RECEIPT SIGNED BY A SELLER IN RETURN FOR DEPOSIT MONIES
(s40 LPA 1925 - in order for a contract for sale of land to be enforceable, 2nd criteria, written record of an oral contract in the form of a memorandum or note) |
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Term
| Bowers v Cator [1798] - on part performance (pre-09/1989 applicable) |
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Definition
| A BUYER TAKING POSESSION OF LAND WITH THE CONSENT OF THE SELLER WAS DEEMED TO SATISFY THE 3RD CRITERIA SET OUT UNDER S40 LPA 1925 |
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Term
| Broughton v Snook [1938] - on part performance (pre-09/1989) |
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Definition
| A BUYER MAKING IMPROVEMENTS ON THE LAND WAS DEEMED TO SATISFY THE 3RD CRITERIA SET OUT UNDER S40 LPA 1925 |
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Term
| For contracts for the sale of land made ON OR AFTER 27/09/1989, which part of which act governs the formalities which must be adhered to in order to make a valid and enforceable contract? |
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Definition
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Term
| According to s2 LP(MP)A 1989, what are the three formalities which must be adhered to in order to make a valid and enforceable contract for the sale of land? (post-09/1989) |
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Definition
i) The contract must be in writing
ii) The contract must contain all the expressly agreed terms
iii) The contract must be signed by both parties |
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Term
| Is it possible to have a valid and enforceable oral contract for the sale of land? |
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Definition
NO
w.r.t pre-1989 contracts, there must be an existing written record of an oral contract, in the form of a memorandum or a note (note, however, without a written note, the contract will still be valid, but not enforceable)
w.r.t post-1989 contracts, oral contracts will be void!!! |
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Term
| Can there be more than one contract for the sale of land? (w.r.t post 09/1989) |
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Definition
| YES - provided that they are both identical, and are both signed by both of the parties |
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Term
| Which part of which Act tells us that there can be two contracts for the sale of land, provided that each is identical and signed by both of the parties? (w.r.t post 09/1989) |
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Definition
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Term
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Definition
| the contractual terms may be incorporated into the contractual document either by being set out in the document of by referring to some other document (w.r.t post 09/1989) |
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Term
| The second requirement for post-1989 contracts is that they must 'contain all the expressly agreed terms'. How can this be done? |
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Definition
| Either by actually containing all the terms, or by referring to another document which contains all of the terms. |
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Term
| Can there be more than one contract for the sale of land? (post 09/1989) |
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Definition
| YES - provided that they are both identical, and are both signed by both of the parties |
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Term
| Which part of which Act tells us that there can be two contracts for the sale of land, provided that each is identical and signed by both of the parties? (post 09/1989) |
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Definition
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Term
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Definition
| the contractual terms may be incorporated into the contractual document either by being set out in the document of by referring to some other document |
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Term
| The second requirement for post-1989 contracts is that they must 'contain all the expressly agreed terms'. How can this be done? (S2(2) LP (MP) A |
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Definition
| Either by actually containing all the terms, or by referring to another document which contains all of the terms. |
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Term
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Definition
IN ORDER TO COMPLY WITH S2 LP(MP)A W.R.T CONTRACTS FOR THE SALE OF LAND... A COLLATERAL CONTRACT , DESIGNED TO INDUCE THE PARTY INTO THE SALE, WHICH IS ITSELF NOT FOR THE SALE OF LAND, DOES NOT HAVE TO BE CONTAINED WITHIN THE MAIN CONTRACT FOR THE SALE OF LAND + DOESN'T HAVE TO COMPLY WITH S2 LP(MP)A
C entered into a contract with D for the purchase of D's land
A further agreement was made that C would not purchase the property until D produced evidence that he was the registered proprieter of the land
This extra agreement was not contained within the final written contract for the sale of the land
D tried to pull out of the sale agreement, claiming that the contract was invalid because it did not contain all the terms
HELD - the extra agreement was a collateral contract, designed to induce the C into purchasing... therefore, it was not part of the sale contract, and therefore the sale contract was valid, it contained all the expressley agreed terms. |
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Term
| Tootal Clothing Ltd v Guinea Properties Management Ltd [1992] |
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Definition
IN ORDER TO COMPLY WITH S2 LP(MP)A W.R.T CONTRACTS FOR THE SALE OF LAND... IF THERE ARE TWO CONTRACTS, BUT ONE OF THEM DOESN'T HAVE ANYTHING TO DO WITH THE SALE OF LAND, THIS IS OK, YOU CAN HAVE TWO DIFFERENT CONTRACTS, PROVIDED THAT ALL THE EXPRESS TERMS TO DO WITH THE SALE OF LAND ARE CONTAINED IN THE SALE OF LAND CONTRACT.
THEREFORE, SECOND CONTRACT IS DISTINCT FROM THE SALE OF LAND CONTRACT
IF PARTIES DECIDE TO HIVE OFF PART OF THEIR AGREEMENTS IN TO SEPERATE CONTRACTS, THIS IS OK, PROVIDED THAT THE BIT THEY HIVE OFF HAS NOTHING TO DO WITH THE SALE OF LAND... FURTHERMORE, THE HIVED OFF BIT DOESN'T HAVE TO COMPLY WITH S2 LP(MP)A
C were granted a lease by the D for 25 years
C's also agreed to carry out shop-fitting works, and upon successful completion of the works, the D would pay them £30,000
The agreement w.r.t the shop fitting works was contained in a seperate contract to the leasehold contract
D tried to claim that the leasehold contract was therefore invalid
HELD - the contract concerning the shop-fitting had nothing to do with the sale of the land, therefore, it did not have to comply with s2LP(MP)A [1989]... 'if parties to a contract decide to hive off part of the contract, that's fine. Contract for shop-fitting was clearly distinct from main contract. |
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Term
| Wright v Robert Leonard Ltd [1994] |
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Definition
COURTS WILL EXERCISE THE POWER GRANTED UNDER S2(4)LP(MP)A - 'TO USE RECTIFICATION TO REMEDY A CONTRACT', WHERE THE COURT DEEMS THAT A TERM WAS ACCIDENTALLY LEFT OUT OF THE CONTRACT, AND WAS PREVIOUSLY AGREED UPON BY THE PARTIES & WHERE IT WOULD BE UNJUST NOT TO GRANT RECTIFICATION
Parties had previously agreed on a term, but it was left out of the contract (agreed that fixtures & fittings would be included in the sale)
The D then removed the fixtures & fittings & claimed that he could do so because the term was not in the contract
HELD - where the parties have previously agreed on a term, and where it would be unjust not to use rectification, the courts WILL use rectification, as they are entitled to do so under s2(4) LP(MP)A. |
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Term
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Definition
| THE COURTS WILL NOT EXERCISE THE POWER TO GIVE RECTIFICATION (AS GRANTED BY S2(1)LP(MP)A) WHERE THE PARTIES HAVE EXPRESSLY AGREED NOT TO INCLUDE A TERM WHICH THEY HAVE AGREED UPON (THEREFORE = NO MISTAKE) |
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Term
| McCausland v Duncan Lawrie Ltd [1997] |
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Definition
IF A 'MATERIAL' TERM IN A CONTRACT NEEDS TO VARIED, THAT VARIATION NEEDS TO COMPLY WITH S2LP(MP)A.
COURT OFFERS NO GUIDANCE ON WHAT A 'MATERIAL' TERM IS... THEREFORE, SAFEST BET IS TO ENSURE THAT ALL VARIATIONS IN A CONTRACT FOR THE SALE OF LAND COMPLY WITH S2LP(MP)A
IN THIS CASE, COMPLETION DATE = MATERIAL TERM
C & D drew up a contract for sale of land
C later reaslied that agreed completion date was on a sunday
C informed D of this, and they agreed to move the date.
However, the Ds failed to complete on the new completion date
C sued D for the full amount upfront (rather than previously agreed installments)
D argued that the contract was invalid, because the contract did not include all the expressly agreed terms (because it didn't include the amended completion date)
HELD - any material variations must comply with s2LP(MP)A... therefore, the contract was invalid. |
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Term
| Commission for the New Towens v Cooper [1995] |
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Definition
CORRESPONDENCE CANNOT BE USED AS A CONTRACT... WRITTEN CORRESPONDENCE BETWEEN THE PARTIES AMOUNTED TO THE PROCESS OF OFFER AND ACCEPTANCE LEADING TO AN AGREEMENT, RATHER THAN TO AN EXCHANGE OF CONTRACTS COMPLIANT WITH S2LP(MP)A
CONTRACT MUST BE SPECIFICALLY WRITTEN, NOT JUST CORRESPONDENCE |
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Term
| Firstpost Homes v Johnson |
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Definition
| SIGNED ELECTRONICALLY (via a CPU) DOES NOT SATISFY CONTRACT REQUIREMENTS IN S2(3) LP (MP) A 1989 |
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Term
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Definition
IF THERE IS MORE THAN ONE CONTRACT, THEY MUST BE IDENTICLE - IF THEY ARE NOT, THE CONTRACTS ARE NOT VALID.
Property developer who agreed to buy and elderly man's house
Agreed to pay £20,000
house was worth £50,000
Property developer drew up contracts...
One said 'I Ruddick, agree to buy from you Ormiston...'
And the other said 'I Ormiston, agree to sell to you, Ruddick...'
HELD - NO valid contract, because the two documents were NOT identicle... exchange of contracts is only permitted if they are two identicle contracts. Furthermore, contracts did not contain all the express terms, e.g. completion date was not included. |
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Term
| After the contracts have been exchanged, what are the legal positions of the buyer and seller? |
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Definition
Buyer = equitable owner
Seller = Legal owner.. holding the property on trust for the buyer.
Buyer acquires legal ownership after...
Unregistered land - after the conveyance
Registered land - after registering |
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Term
| WHAT ARE THE 4 KEY THINGS YOU HAVE TO LOOK OUT FOR W.R.T RULES ON CONTRACTS, CONVEYANCING, LEGAL TITLE PASSING? |
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Definition
1) Pre 27/09/1989
2) Post 27/09/1989
3) Registered land
4) Unregistered land |
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Term
| What is the proprietary effect of exchanged contracts for the sale of land? |
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Definition
Buyer = equitable owner
Seller = legal owner, holding land on trust for the buyer
AS SOON AS THE PARTIES HAVE SIGNED A VALID ENFORCEABLE CONTRACT, THE BUYER HAS AN 'ESTATE CONTRACT' IN THE FORM OF A CONTRACT TO BUY A LEGAL ESTATE |
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Term
| After the exchange of contracts, the buyer has an equitable interest in the land... this interest can be enforced against 3rd parties... how? |
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Definition
| Ahhh, you will just have to wait and see. This is discussed in a later chapter... it differs for registered / unregistered land. |
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Term
| What is the first stage in the sale of freehold? |
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Definition
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Term
| What is the second stage in the sale of freehold? |
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Definition
Completion (which occurs by way of a deed.
If dealing with unregistrered land, completion is by way of conveyance.
If dealing with registered, completion is by way of a transfer. |
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Term
| Which part of which act requires that a legal estate must be created, or conveyed/transferred by way of a deed? |
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Definition
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Term
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Definition
| a legal estate must be created, or conveyed/transferred by way of a deed |
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Term
| Where are the requirements of a valid deed set out? |
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Definition
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Term
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Definition
| Sets out the requirements for a valid deed |
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Term
| What are the requirements for a valid deed? (s1 LP(MP)A) |
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Definition
s1(2) - must say deed on the face of it
s1(2A) - shall not be taken make clear on its face that it is intended to be a deed, merely because it is executed under seal
s1(3) only valid if it is signed by 'him' in the presence of a witness who attests the signature (attest = witness must sign too) AND, it is delivered as a deed. |
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Term
| What is the final stage in the purchase of freehold land? |
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Definition
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Term
| W.r.t registered land, how can an individual prove ownership of the land? |
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Definition
| By their name appearing on the land register for that property |
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Term
| W.r.t unregistered land, how can an individual prove ownership of the land? |
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Definition
| By showing the title deed to the property |
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Term
| What is the rule w.r.t first registrations? |
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Definition
| Each time that unregistered land is sold for the first time since 1990, it must be registered - this is known as first registration (note, the only type of land that can be sold = freehold e.g. leaseholds are assigned) |
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Term
| When registered freehold land is sold, what happens w.r.t registrations? |
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Definition
| The new owner must register themselves on the register, otherwise the sale will not operate at law (buyer will only have equitable title) |
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Term
| Other than when buying land, what are the other transactions that will trigger the need to register? |
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Definition
1) Creation of a lease for more than 7 yrs (lease needs to be registered, but if freehold = unregistered, it doesn't trigger for the freehols to be registered)
2) Transfer of the freehold by gift, or court order
3) Assignment/Transfer of a lease on unregistered land with more than 7 yrs to go on the lease
4) Assignment/transfer of a lease on registered land (doesn't matter how much longer there is to go on it)
5) 3-month in the future leases (regardless of lease length) e.g. the grant of a lease to begin 3+ months after after it is granted
6) first legal mortgage on the freehold or leasehold, with more than 7 years to run (equitable mortgages do not have to be registered) |
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Term
| Is there the option to voluntarily register your property? |
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Definition
YES - s3 LRA
there are benefits associated with registered land, so people may want to register, even though they aren't yet legally required to do so. |
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Term
| When dealing with the purchase of unregistered land, how long does the new owner have to register it? |
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Definition
LRA s6
The new owner must register the land within 2 months of disposition. |
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Term
| When dealing with the purchase of unregistered land, what happens if the buyer does not register the land within 2 months of disposition? |
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Definition
LRA s7
If the registration is not made within 2 months, any transfer or grant of a legal estate in the freehold or leasehold becomes void. Legal title results back to the seller, who will hold it on bare trust for the transferee. Buyer will then hold the equitable interest, not the legal title. (in practice, the Land Registry will accept late applications, but in the meantime, the buyer will only hold the equitable interest, and all that that entails. |
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Term
| When purchasing registered land, how long does the buyer have to register? |
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Definition
| s6 (1) & (4), the buyer has 2 months... otherwise legal title reverts to the seller. |
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Term
| When does the purchaser of registered land acquire legal title to the land? |
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Definition
| Once they have registered? |
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Term
| When does the buyer of unregistered land acquire legal title to the land? |
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Definition
| After completion... however, if they do not then register within 2 months, legal title reverts to the seller, who holds it on bare trust for the buyer. |
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