Learn: Property Law

Conveyancing definition

The legal process by which legal title to land is formally acquired created or transferred.[cite: 2]

Three stages of title transfer

Contract completion and registration.[cite: 2]

Governing statutes of conveyancing

Law of Property Act 1925 Law of Property Miscellaneous Provisions Act 1989 and Land Registration Act 2002.[cite: 2]

Short lease registration exception

Short leases granted for seven years or less generally do not require registration under section 27 2 b LRA 2002.[cite: 2]

Gift property transfer stage

Transfers by way of gift do not require a contract stage.[cite: 2]

Four stage conveyancing model

Pre contract contract completion and registration.[cite: 2]

Pre contract stage activities

Finding a property inspecting putting in an offer arranging finance and investigating title.[cite: 2]

Legal status of pre contract stage

Subject to contract and legally non binding.[cite: 2]

Gazumping definition

A seller accepting a higher offer from a new buyer after informally accepting an initial offer.[cite: 2]

Gazundering definition

A buyer lowering their offer at the last minute right before exchanging contracts.[cite: 2]

Gazanging definition

A seller pulling out of a transaction right before exchange to stay in the home.[cite: 2]

Section 2 LP(MP)A 1989 requirements

Land contracts must be in writing incorporate all agreed terms and be signed by both parties.[cite: 2]

Function of contract exchange stage

Creates mutual enforceability of contractual obligations.[cite: 2]

Purchaser status after contract exchange

Obtains an equitable interest enforceable via specific performance.[cite: 2]

Seller status after contract exchange

Holds property on trust for purchaser with a duty not to damage it.[cite: 2]

Risk of damage after contract exchange

Passes to the purchaser under standard conditions of sale.[cite: 2]

Completion stage definition

Discharge of contractual obligations payment of purchase price and key transfer.[cite: 2]

Section 52 LPA 1925 requirement

Conveyances of land are void for conveying a legal estate unless made by deed.[cite: 2]

Section 1 LP(MP)A 1989 deed rules

Document must be clear on its face that it is a deed signed witnessed and delivered.[cite: 2]

Section 27 1 LRA 2002 rule

Dispositions required to be registered do not operate at law until registration requirements are met.[cite: 2]

Section 27 2 a LRA 2002 application

Applies compulsory registration requirements to transfers of registered land.[cite: 2]

Registration gap definition

The time gap between legal completion and final registration at HM Land Registry.[cite: 2]

Duration of registration gap

Typically around one month.[cite: 2]

Buyer interest during registration gap

Holds a new equitable interest preventing seller from exploiting enduring legal title.[cite: 2]

Priority search function

Checks title register and freezes new entries for 30 business days under section 72 LRA 2002.[cite: 2]

Equitable property rights foundation

Established to avoid unconscionable outcomes and enforce reasonable expectations.[cite: 3]

Proprietary estoppel definition

An equitable doctrine preventing a landowner from unconscionably breaking a promise relied on to another's detriment.[cite: 3]

Three core elements of proprietary estoppel

Representation or promise reliance and detriment or unconscionable disadvantage.[cite: 3]

Proprietary estoppel representation standard

Assessed objectively based on what a reasonable person would understand.[cite: 3]

Proprietary estoppel reliance requirement

Causal link showing a change of position due to the representation.[cite: 3]

Proprietary estoppel detriment timing

Arises when the promise or assurance is unconscionably withdrawn.[cite: 3]

Inwards v Baker facts

Father encouraged son to build bungalow on his land promising long term occupation.[cite: 3]

Inwards v Baker outcome

Son established an equity by estoppel resulting in a life interest in the land.[cite: 3]

ER Ives v High facts

Neighbour permitted foundation encroachment in exchange for an unexecuted right of way.[cite: 3]

ER Ives v High legal outcome

Right of way enforced based on benefit and burden principle and acquiescence.[cite: 3]

Section 116 LRA 2002 rule

Equity by estoppel has effect from creation as an interest capable of binding successors.[cite: 3]

Section 28 LRA 2002 basic priority rule

Priority between competing property interests is determined by creation date first in time.[cite: 3]

Section 29 LRA 2002 special priority rule

Purchaser for value takes free from prior interests unless protected by notice or overriding status.[cite: 3]

Chaudhary v Yavuz facts

Unregistered right to use external staircase on neighbour land claimed against new purchaser.[cite: 3]

Chaudhary v Yavuz outcome

Right failed to bind purchaser because it lacked notice registration and actual occupation.[cite: 3]

Overriding interests metaphor

Described as a crack in the mirror of the Land Register.[cite: 3]

Schedule 3 Paragraph 1 LRA 2002

Legal leases granted for a term not exceeding seven years override registered dispositions.[cite: 3]

Schedule 3 Paragraph 2 LRA 2002

Unregistered proprietary interests belonging to a person in actual occupation override registered dispositions.[cite: 3]

Schedule 3 Paragraph 2 inquiry exception

Interest does not override if inquiry was made and right holder failed to disclose it.[cite: 3]

Schedule 3 Paragraph 2 inspection exception

Interest does not override if occupation was not obvious upon careful inspection and disponee lacked actual knowledge.[cite: 3]

Actual occupation overriding formula

Proprietary interest plus actual occupation minus undisclosed inquiry equals overriding interest.[cite: 3]

Schedule 3 Paragraph 3 LRA 2002

Unregistered legal easements override unless unknown unobvious and unexercised in the past year.[cite: 3]