property_law_summaries

Creation of trusts mere equities arise in defined

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Creation of Trusts: Mere Equities___________________________ arise in defined situations and are ancillary to rights that already exist. Eg. right to set aside a K of sale of a property due to fraud The right to bring an action to obtain equitable remedies against a defendant. (weakest form of property interest) RIGHTS o Personal right only o Incapable of assignment (ie. You cannot alienate it) o Unenforceable against third parties BUT courts are changing: In this way, some equities have assumed a proprietary character = “a mere equity" Mere equity has a more limited sphere is enforceability than legal and equitable interests Ie. It is a weaker property interest because it binds less people Categories of Mere Equity__________________________________________ In certain circumstances, the courts have been prepared to enforce some categories of these rights against third parties and where this has happened the mere equity assumes a proprietary character. These equities are nevertheless “at the bottom of a hierarchy of proprietary interest consisting of legal interest, equitable interests and equities”. Defined equities: arise in defined situations; attached to existing rights o Equity of rectification Right to have a document corrected or rectified so that it contains the agreements of the parties as the parties had agreed. Eg. You have a lease ; arties have decided on the terms and conditions but the actual document has an error on it. o Equity to set aside a fraudulent transaction Particularly in respect to mortgages. Borderline mere equity interest
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Undefined equities: independent interests in property not attached to existing rights Rights arising out of estoppel: protects a person from detriment that might otherwise flow to the person if they charge their position on the basis of an expectation or assumption created by another than then did not take place. Usually much less defined. TRADITIO NAL HIERARCHY OF PORPERTY INTERESTS (GENERAL LAW) - Legal: enforceable against all others - Equitable: enforceable against all except a bona fide purchaser for value of the legal estate without notice of the equitable interest - Mere equity; enforceable against all except the bona fide purchaser for value of the legal or equitable estate without notice of the mere equity.
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What is a lease? A lease is an interest in land given by a landowner (landlord/lessor) to another person (tenant/lessee) for a fixed duration such that the lessee has a right to exclusive possession of the premises . Terminology and Classification of Leases Lessor : Owner of freehold = landlord Lessee: Leasehold estate granted to = tenant Tenancy : Right to occupy – short term Lease and Tenancy : Equal, but lease used to describe longer term agreement Demise: Long term agreements, perhaps for commercial purpose Leasehold reversion: Interest retained by lessor once leasehold interest has passed to tenant, for duration of lease.
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