Co-ownership - Creation of Equitable Interests

5 important questions on Co-ownership - Creation of Equitable Interests

What is meant by express trust and what are the relevant sections of the LPA 1925?

Express trust (a will) of land must satisfy s 53(1)(b) of the LPA 1925. The declaration of trust must be evidenced in writing and must be signed.

What is meant by 'implied' trusts over land under equitable interests under trusts?

Arise without formalities (s 53(2) of the LPA 1925). For example, when one party contributes to the purchase price which is not a gift or a loan, but the party is not named as a legal owner.

Explain the exception in s2(5)(a) LP(MP) A 1989 that the sale of land has to be made by signed writing?

signed writing does not apply:

(a) to a short lease falling within s54(2) LPA 1925 (parol lease) - can be oral

(b) a contract made in the course of a public auction.
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What are the formalities for estate contracts under s 2 of the LP(MP)A 1989? !!! EQUITY WILL RECOGNISE AS AN ESTATE CONTRACT A LEASE, OR AN EASEMENT WHICH SATISFIES S 1 LPA 1925 BUT WHICH HAS NOT BEEN GRANTED BY DEED (EG, A DOCUMENT) !!!

  • in writing
  • containing all the agreed terms
  • and signed by both parties

!!!ONLY APPLIES TO EASEMENTS OF AN UNCERTAIN PERIOD THAT IS NOT CAPABLE OF BEING LEGAL UNDER S 1(2)(A) LPA 1925!!! What are the formalities for an equitable easement?

An example of an equitable easement is an easement granted for an uncertain period. This easement is not capable of being legal under s 1(2)(a) LPA 25. It can only be capable of being an equitable easement under s 1(3) LPA 25. It should be in writing, signed by the person creating it (s 53(1)(a) LPA 1925.

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