law of real property 1 2018-2019 - nailah...
TRANSCRIPT
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Law of Real Property 1
2018-2019
Lecture 9
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“The two streams of jurisdiction, though they run in the same channel, run side by side and do not mingle their waters” Ashburner’s Principles of Equity, 2nd Ed, p18.
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Before 1871
• Two courts with different sets of Rules: Common law Court (High Court) and Chancery
• Parties could go from one to the other. Some things were exclusive to High Court and some were exclusive to Chancery, but there was some overlap. The same case might be treated differently by the two.
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Executors place estate property in bank which
then crashes
Chancery High Court
• Only penalized if Strict Liability
negligent
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Time not made of essence in contract
Chancery High Court • Time not of essence Time always of
essence
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Unregistered written Agreement for long lease
(> 2 years)
(By law, these should be formally registered
as a deed in the land registry.)
Chancery Court • Given full effect Treated as
periodic tenancy
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After 1871
• Supreme Court of Judicature Act gave the Court the power to adopt certain equitable rules, such as “time not being of essence in contracts” and “executors not being strictly liable”.
• Catchall phrase: Wherever there is conflict between the Rules of Law and the Rules of Equity, the Rules of Equity shall prevail
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Walsh v Lonsdale
(1882) 21 Ch D 9
• Walsh v Lonsdale was the first major relevant case after fusion. It dealt with an unregistered 7 year written lease. The Court had to decide whether to follow the precedents from Law or from Equity.
• “There is only one court, and the equity rules prevail in it.” – Jessel MR
• The lease was given full effect as though it had been properly registered.
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Trusts
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Settlor
Trustee Beneficiary
Trust
Property
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• A trust is constituted when trust property is conveyed to the trustees.
• In the olden days, the common law court treated the trustees as the absolute owners. Only the Chancery would recognize trusts and give a declaration of trust.
• Today, a settlor can prepare a Deed of Trust, or declare a trust by Will.
Title Deeds
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Settlor
Trustee Beneficiary
Trust
Property
Legal Estate
Title Deeds
Beneficial Estate
Settlor’s Deed of Trust
Or Court Order
Declaration of Trust
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Trustee 2 (unless Chancellor’s
Darling)
Beneficiary
Trust
Property
Legal Estate Beneficial Estate
Sell, Mortgage or Assign Good against world Right in Rem
Sell, Mortgage or Assign Good against trustee Right in Personam
Trustee
Beneficiary 2
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• In Rem = against the thing.
• In Personam = against the person, no matter where they are in the world
• Action to recover land from trespasser must be filed in the same jurisdiction as the land.
• Action to enforce trust against trustee may be filed and enforced wherever the trustee is.
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• Today, the trust document is legally recognized in relation to express trusts.
• The court must still declare all other trusts.
• Generally, where the court has declared a trust, it also compels transfer.
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Title Deeds
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Court Order
Declaration of Trust
Court Order
Conveyance
Title Deeds
Court Order
Sale
OR
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•Specific Performance including Part Performance, •Constructive Trust, •Resulting Trust, •Proprietary Estoppel
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Resulting and Constructive
Trusts
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Resulting Trust
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Constructive Trust (usually seen in Family Home) In many countries, husband and wife issues are now governed by Statute
Services
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Specific Performance
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Specific Performance
• “an order of the court directing a party to a contract to perform his obligations thereunder according to its terms.”
– Pettit in Equity and Law of Trust
Court Order
Specific
Performance
Contract for Sale
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• Specific Performance is an equitable remedy.
• It is discretionary.
• The Court will consider the type of contract, the inadequacy of damages, and whether there are any defences.
• Defences include “clean hands” & “delay” (doctrine of laches)
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Doctrine of Part Performance
• All agreements related to land must be in writing.
• Part performance is an equitable doctrine that allows a party to enforce an oral agreement.
• There is some overlap with proprietary estoppel which we consider later in the semester.
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Court Order Specific
Performance via doctrine of
Part Performance
Oral Contract for
Sale
Actions
The first step is to convince the Court of the existence of the contract. The actions must be relatable only to the type of contract claimed.
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• Landowner promised housekeeper he would leave her the house if she looked after him for free. Did not include it in his will and his heirs turned her out.
Blue looked after Red
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In Maddison v Alderson (1883)
I will give you the
house if you look after
me
Looks after Red for the rest of his
life
Did not accept Blue’s actions as proof of contract.
No specific performance
granted.
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Kingswood Estate v Anderson
I will give you a new property
on the same
terms if you move
Gives up rent-restricted apartment
Accepted Blue’s actions as proof of
contract. Specific
performance granted.
Elderly caregiver of son with disability