Land Law Q1) a+b)

• Equitable property right

• A profit

Does not need to be created using a assigned written document

They can arise as result of the conduct of the parties

• A profit

type of implied trust

Arises when a person who is not the legal owner of the property makes a significant contribution towards it

• Legal property rights

Expressly agreed & Impliedly agreed

Expressly agreed & not Impliedly agreed

Expressly agreed constructive trust

Impliedly agreed constructive trust

• The legal owner of a property and a person who is not the legal owner expressly agree (evidence of discussions) that the person who is not the legal owner should have an interest in the property. The person who is not the legal owner then acts to their detriment (contributions to purchase price or making substantial improvements to the property at own expense) in reliance on that agreement.

• The legal owner of a property and a person who is not the legal owner expressly agree (evidence of discussions) that the person who is not the legal owner should have an interest in the property. The person who is not the legal owner then acts to their detriment (contributions to purchase price) in reliance on that agreement.

• In this case Rosie paid for a new kitchen and conservatory

contributions to purchase price

• A constructive trust is a minor interest (Property interest in registered land)

• A constructive trust is not a minor interest (Property interest in registered land)

• Section 29 (1) Land Registration Act 2002

Section 2 LP(MP)A 1989

enter a restriction on the title register of the estate which is subject to the interest

enter a notice on the title register of the estate which is subject to the interest

• In this case constructive trust not properly protected

• In this case constructive trust properly protected

They are binding even if they are not on the register

They are not binding even if they are not on the register

• Interests of a person in actual occupation (Overriding interest)

• If a person has a minor interest in a piece of land which would normally require protection by notice or restriction, that interest will be upgraded to overriding if the requirements of Schedule 3 paragraph 2 Land Registration Act 2002 are satisfied

• If a person has not got a minor interest in a piece of land which would normally require protection by notice or restriction, that interest will be upgraded to overriding if the requirements of Schedule 3 paragraph 2 Land Registration Act 2002 are satisfied

o The person with minor interest must be in actual occupation of the land at the time of sale

o The actual occupation must be obvious on a reasonably careful inspection (or purchaser know about interest)

o If enquiry was made before the disposition of the person with the interest then that person must have disclosed the interest if it was reasonable to expect them to do so

o The right claimed must be capable of forming the subject matter of a grant (specific/precise definition)

• Chhokar v Chhokar [1984]

• City of London Building Society v Flegg [1988]

o Court was satisfied that Mrs Chhokar was in actual occupation as belongings still present at the house and she intended to return

o Some degree of permanence and continuity

o If enquiry was made before the disposition of the person with the interest then that person must have disclosed the interest if it was reasonable to expect them to do so

• Rosie had overriding equitable right

• Rosie did not have an overriding equitable right

• Overreachable equitable rights

• Overriding interests

• To overreach the rights of the beneficiaries the purchaser must pay the purchase price to at least two trustees (trustees are simply the legal owners wherever there is a trust so they will be the vendors)

• A profit is a right to go on somebody else’s land and remove from that land something which exists there naturally – grazing rights

• Purchase monies then form a trust fund and beneficiaries will have equitable rights in the trust fund

• Purchase monies then will not form a trust fund and beneficiaries will have equitable rights in the trust fund

• City of London Building Society v Flegg [1988]

• Chhokar v Chhokar [1984]

• Rosie’s equitable right in the land is overreached but she receives equitable right in the trust fund

• Rosie’s equitable right in the land is not overreached