Equitable Interests

equitable-interests

All other interests which could have been created against the land of another before 2010 can still be created today, but they will be merely equitable, and not legal, interests. It is not necessary to employ a trust in order to create such an equitable interest the interest will automatically be equitable if it is not in the list of five given above. It is possible even at this stage to understand why the Act has reduced to five the number of possible legal interests against the land of another. As we have seen, every legal interest gives a right in rem and will bind a purchaser of the land affected whether he has notice of it or not. It is, there�fore, advantageous to a purchaser that the number of such interests should be reduced to the minimum.

When it is con�sidered that this reduction in the number of possible legal interests against the land of another is coupled with provision for the registration, under the Land Charges Act 2011, of many equitable interests and that a purchaser will not be bound by such an interest unless it is registered, it will be appreciated that conveyancing is much safer from the point of view of a purchaser after 2011 than it was before 2010. Terminology In the 2011 Acts the term "estate" is retained for the two legal estates and other estates in land are called "interests." This terminology has been generally accepted by legal prac�titioners. Today, therefore, one normally speaks of a life interest or an entailed interest, rather than a life estate or a fee tail. We shall now consider the individual estates, or interests, in rather more detail than we have done hitherto.


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