Legal title in this instance is held by a trustee, while the other party holds an equitable interest in the property. However, there are a number of important differences between the two. Lease contracts can vary themselves. An agreement for the grant of an interest in land on terms that correspond to a legal lease but do not comply with the necessary formal requirements of a legal lease. ⇒ A lease for a term of between three and seven years must be created by deed in order to be legal (Law of Property Act, section 52(1)). what is the difference between an equitable lease and a legal lease, and a equitable anything and legal anything in property law. ⇒ Where the lease is created over a registered estate in land for a term of more than seven years, the lease needs to be registered in order to be legal (Land Registration Act 2002, section 27(2)(b)(i)). A hire purchase is just the legal term for a contract that is developed in the UK. Also Found In . Both legal interest and equitable interest are forms of ownership held over assets. implemented by the TLA, one acquires legal title by registration – it is a system of title by registration and not registration of title. Legal vs Equitable Interest .
But, the legal site practicallaw.com says this: Section 62 also does not apply to an agreement creating a lease exceeding a term of three years, because such an agreement creates an equitable interest and not a legal estate. Consequently, if parties sign a written lease for a term in excess of 3 years, but they do not register it, then the lease can only ever be recognised by the Courts as being an equitable lease. End of Document.
He may either bring suit for breach of the trust or, in the event that the trustee is seeking to dispose of the property, he may prevent any dealings with the …
It is important to fully understand the differences between legal interest and equitable interest to avoid personal disappointment and financial loss.
The only significant difference between a legal assignment and an equitable assignment is that an equitable assignee often cannot bring an action in its own name against the third party contractor, but must fall back on the rules governing equitable assignments and join the assignor as party to the action.
If the beneficial owner is of the view that his interest in the property is being or will be undermined, his only claim is against the trustee.
For example, if L purports to grant T a lease for seven years but the transaction is effected by simple written contract to grant a lease rather than by deed, the court may enforce the contract to grant the lease between the parties. Thanks, And I'm glad to hear that! There are differences between lease purchase contracts and lease option. it may sound like a confusing question but i … A major difference between legal and equitable rights used to be found in the rules governing the enforceability of those rights against a third party, for example, against the purchaser of the estate which is subject to the rights. Thus, while a legal easement over a piece of land could be enforced against a purchaser of land, it might not be enforceable against certain purchasers.