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Interests in Land - Coggle Diagram
Interests in Land
What are interests?
Proprietary rights of more limited use
Can be recovered as an action in rem
Capable of being enforced against third parties
Doesn't give interest holder a right to possess the land
Gives the interest holder the right to do something on the land
Also referred to as incumbrances
Interests capable of being legal
Mortgage
Loan of money, which is secured by rights granted over property
As per
s 1(2)(c) LPA 1925
These rights include the right to possess and sell the land in the event of default in repayments
The borrower grants the mortgage, not the lender
Easement
Proprietary right to use land which belongs to somebody else
As per
s 1(2)(a) LPA 1925
Use is more limited than an exclusive right to occupy or use
Must be granted for a set term or forever
Right of Entry
Either:
A right for a landlord to re-enter leased premises and end the leasehold estate in the event of tenant default/ some other specified event
A rentcharge owner's right to hold the land if money owed isn't paid
As per
s 1(2)(e) LPA 1925
Also known as forfeiture clauses
Interests which can only take effect in equity
Restrictive covenant
Arise between freeholders when one person sells part of their land and wishes to ensure that the buyer doesn't do anything which could affect the amenity and value of the seller's retained land
Negative in nature and prevent a land owner from doing something on their land
Interest in a trust of land
Exists where one person (trustee) holds property for the benefit of another (beneficiary)
There's a split in legal and equitable title; the beneficiaries have an equitable interest in the land
Trustees and beneficiaries can be the same or different people
Estate contract
Contractual right to a legal estate, whether freehold or leasehold
Equity will order specific performance of a contract to create/ transfer a legal estate
Together with the maxim that 'equity sees that as done what ought to be done', this results in an equitable interest arising from the contract
As per
s 1(3) LPA 1925
Distinction between legal and equitable interests