What formalities are required? Creation and transfer of legal estates and interests (Chapter 3).

Which are the four statutes which set out the formalities required for transferring interest in land?

1. s2 Law of Property (Miscellaneous Provisions) Act 1989-

2. s52 Law of Property Act 1925

3. s1 Law of Property (Miscellaneous Provisions) Act 1989

4. Land Registration Act 2002.

Which statute governs the transfer of an interest in land?

s1 Law of Property (Miscellaneous Provisions) Act 1989.

A contract for sale or disposition of an interest in land will be void unless the contract ... (s2 Law of Property (Miscellaneous Provisions) Act 1989.

1. Is made in writing

2. Incorporates all the terms which the parties have expressly agreed

3. Document must be signed by or on behalf of both buyer and seller.

If the necessary terms are not incorporated into the contract, will the contract be void?

Yes.

In which case was the contract determined to be void as the contract was to vary a pre-existing contract and omitted a crucial term?

Keay and Another v Morris Homes (West Midlands) Ltd [2012].

What three keys points should be noted regarding s2 Law of Property (Miscellaneous Provisions) Act 1989?

1. Terms may be set out in contract or by reference to another document

2. Contracts for sale of fittings do not have to comply with s2

3. Contracts as to sale of land do not actually transfer the land.

What kind of interest is acquired after exchange of contracts?

Equitable interest.

What is the remedy if a seller refuses to sell after exchange?

1. Damages

2. Specific performance.

What should the buyer do on exchange with regard to protecting its interest?

1. Take out buildings insurance

2. Follow the procedures required to complete.

By s52 Law of Property Act 1925, what document is required to effect completion?

Deed.

What are the two exceptions to the requirement for completion to be made by deed?

1. s54(2) LPA 1925 - lease for three years or less

2. s53(1) LPA 1925 - equitable interests.

What are the rules for creation of a valid lease? (s1 LP(MP)A 1989).

1. Must be in writing

2. Must make it clear it is a deed

3. Must be validly executed.

Do contracts for fittings need to comply with s2 LP(MP)A 1989?

No but they are often included in the main contract.

Do contracts relating to the sale of land actually transfer ownership of the land?

No, this must be done by deed.

What does the buyer have in respect of the property he intends to purchase, after exchange but before completion?

An estate contract (but title of land vests with seller).

What are the requirements for valid execution?

1. Signed by the individual in the presence of a witness who attests to confirm he has witnessed the signature. Or signed at individual's direction in the presence of two witnesses who are present.

2. Delivered by the individual or someone authorised by him to the other party. Delivery means person executing it acted in such a way to show intention to be bound. S1(5) if solicitor, licensed conveyancer or agent or employee delivers deed, they are presumed to act on behalf of client.

Is sale subject to contract enforceable?

yes.

What statute must exchange of contracts comply wiht?

s2 LP(MP)A 1989.

Must transfer on completion be made by deed?

Yes, s52 LPA 1989.

What statutory requirements must transfer on completion comply with?

s1 LP(MP)A 1989.