You are consulted by Ben Noakes, who is buying Glebe Farm from Sam Richards.Title to the

You are consulted by Ben Noakes, who is buying Glebe Farm from Sam Richards. Title to the farm is registered.  1.Sam’s sister Tara Richards, who paid the deposit for the farm from her savings when Sam bought it, is refusing to move out.

2.When Sam bought Glebe Farm he took out a mortgage by deed with the Dalton Building Society, secured over the land.  3.Six years ago, Sam signed a document giving Marian Edwards a right to exclusive possession of a cottage in the grounds of Glebe Farm for ten years in return for a premium of £20,000. Marian spends part of each year in the cottage and the rest at her holiday home in Spain. Her son Jason occupies the cottage when she is away.

4.In 2020, Sam signed a deed with his neighbour, Ned Allen, in which Sam agreed that he and his successors would never carry out building works to Glebe Farm without first getting permission from Ned.

5.Two months ago Sam exchanged contracts with the owners of the neighbouring riding stables, Peter and Suri Jones, to sell them part of one of his fields within Glebe Farm. The transaction has not yet been completed, but his neighbours have fenced in the land and put ponies in to graze.Advise Ben as to the likely nature of the interests being claimed by these third parties.You should approach this question using the same structure that you adopted in Unit 2,

namely, take each third party right in turn and :

Identify the type of third party interest Consider whether it is capable of being legal Consider the formalities required for creation of the right Apply to the facts and decide whether the interest is validly legal, equitable or statutory 1 / 2

Claimant Type of third party interest Capable of being legal?Formalities required Legal, equitable, statutory Tara RichardsImplied trust by reason of her contribution to deposit on Sam’s purchase.No. s1(3) LPA 1925 None. S53(2) LPA 1925 Equitable implied trust Dalton Building Society Mortgage Yes. s1(2)

LPA 1925

By deed – s52 LPA 1925.Deed must comply with s1 LP(MP)A 1989 – clear on the face it is a deed, signed, witnessed and delivered.Mortgage was created by deed therefore legal (1) Marian Edwards Lease Yes. s1(1)

LPA 1925

A legal lease of ten years should be created by deed – s52 LPA 1925; compliant with s1 LP(MP)A 1989 (as above). On facts, told Sam signed a ‘document’. If that ‘document’ was a deed then… If the ‘document’ was not a deed but satisfied the requirements of s2 LP(MP)A 1989 – in writing, signed by both parties and incorporating all agreed terms, then…(2) …Lease is a legal lease for ten years.…Lease is an equitable lease (estate contract) Ned Allen Restrictive covenant No. s1(3) LPA 1925 Minimum requirement for creation of an equitable interest is signed writing – s53(1)(a) LPA 1925.On facts, the interest was created by deed, so minimum requirement satisfied.Interest is equitable restrictive covenant.Mr & Mrs Jones Estate contractNo. s1(3) LPA 1925 Must comply with s2 LP(MP)A 1989 – in writing, signed by both parties and incorporating all agreed terms.Contracts exchanged so assume formalities complied with.Equitable estate contract.

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