Home / Summaries / WS1 Introduction to Estates and Third Party Interests in Land / interest-equitable-property

Enforceability in the Registered System - Equitable Interests

4 important questions on Enforceability in the Registered System - Equitable Interests

What are equitable interests under trusts in relation to estate or interest in land?

The legal estate is held by the trustee and the equitable interest is held by the beneficiary. There can be more than one trustee and beneficiary

What are the two types of separate ownership under Equity?

The trustee is recognised under common law as the legal owner whereas the beneficiary has equitable ownership recognised by equity.

Explain the first interest of restrictive covenants?

Promises made by one party ('the covenantor') in favour of the other party (the 'covenantee') that the covenantor will not use his land in a particular way. (limits the covenantors use of his property)

Explain the second interest of an estate contract?

An estate contract is when the owner of the property creates or conveys the legal estate in the land to the buyer. The buyer is seen as having an immediate (equitable) interest in the land (eg, the owner of the property X sells the property to buyer Y and exchanges contracts. UNTIL completion of the purchase, Y holds an equitable interest in the property).