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Creation & Transfer of Legal Estates & Interests - Chapter 4…
Creation & Transfer of Legal Estates & Interests - Chapter 4
Exchange of Contracts
S2 LPA (MP) Act 1989 - governs contracts in relation to creation or transfer of an interest in land
Incorporates all the terms as agreed
Signed by or on behalf of
In writing
Failure to incorporate all agreed terms = can make the contract void
Keay and Another v Morris Homes Ltd - contract failed to include an alleged promise
S.2 LPA (MP) Act 1989
Terms may be incorporated by being set out in the document or by reference to another document
Contracts which relate to sale of land do not actually transfer ownership
Contracts for items, e.g. curtains and other fittings do not have to comply
After exchange, acquirement of an equitable interest. Has the right to enforce the sale
Buildings insurance
Estate contract - will not bind third parties unless certain procedures are followed
Completion
Must be by deed S.52 LPA 1925
Formal document required when transferring legal title
S.1 LP(MP)A 1989 - requirements for a valid deed
Writing
Clear on its face - intended to be a deed
Validly executed
Exceptions
S.54(2) LPA 1925 - lease for 3 years or less
S.53(1) - equitable interests
Registered Land
Buyer becomes legal owner once registered at the Land Registry
Seller retains legal estate, buyer has an equitable interest - holds the land on trust until registration
"Registration gap"
Land Registration Act 2002 - governs rules for registered land
Unregistered Land
Compulsory first registration
Legal estate transferred on completion
No registration gap, however registration must occur within 2 months