The Main Goals Of The Law of Property Act of 1925 Essay

  1. What are the main objectives of the 1925 property legislation?

After the World War 1 there was a need for a reform of land law which led to the 1925 Property Legislation. The legislation comprises of “a series of Acts of Parliament that came into effect on 1 January 1926.”[1] These six acts: Administration of Estate Act 1925; Land Changes Act 1925; Land Registration Act 1925; Law of Property; Settled Land Act 1925 and finally Trustee Act 1925 were brought together essentially to produce the final Property Legislation, which consequently made substantial changes to the common law. The only estates in land which are capable of existing or created at law are estates in fee simple absolute in possession; and a term of years absolute,[2] other estates become equitable interests.[3] To be defined as a legal estate, the interest must be listed under the Law Property Act 1925, s. 1(2) also certain steps have to be met. If the formalities are not met, then the interests status may by equitable instead, but only “where the equity can find a specifically enforceable valid contract to create the interest”.[4]

In the case of Walsinghams (1573) it was stated “an estate in land is a trade in the land for time in the land, or land for time”[5]. Estates in land before the 1925 Legislation had three common freehold estates. It was held that ‘fee’ meant an estate is capable of being inherited so the fee simple can be passed down to future generation. ‘Simple’ means that there are no conditions on the potential inheritance of the land.[6] There were new definitions introduced on what rights are defined as legal or equitable, explanations on joint ownership of land, the formation of proprietary rights etc.[7] Undoubtedly there have been amendments made and changes through later legislation, however it still remain to be a fundamental statue into the development of modern land law.[8]

The core objectives to be achieved by the Property Legislation 1925 simple put, was that land should be transferable and must be capable of multiple ownership. “Land must be freely alienable”[9], which essentially means that the land must be able to be transferred and inherited to others. Land must be capable of having different owners which can be either family or commercial reasons. It should also be possible to create various interests in which is in favour for others.[10] Nevertheless, the two objectives of the Property Legislation 1925 are in fact in conflict with each other. For land to be easier to transfer, the less interests that should exist in it. If an Estate is not free from prior adverse interests[11] a purchaser is less likely to buy land.[12] An example which demonstrates the clash between the two objectives, could be a land which has various people’s right in it, were it is being used to support a family or some commercial purpose, it lacks the characteristic of being transferrable i.e. it is not “alienable”.[13]

For land to become more freely alienable, then the more number of interest that are present must be limited and must not remain binding on any purchaser. Consequently, this action would reduce the ability of land being fragmented, which in turn could become a disadvantage and the end result could be that the land is easier to sell, however there will be difficulty in sharing the land.[14] Even though, before 1926 landowners could easily share the land, the differences between legal and equitable rights could leave beneficiaries vulnerable. Those who had equitable interests had a share in land, but could still lose it to a purchaser.

When considering the position before 1925, the problems become clear. A person who purchasers a legal estate in land may also have to deal with many interests that already exist in land; some being legal and some being equitable. A purchaser of a legal estate in land who did not know the residing notice of an adverse right in land would be bound by a legal right, but not an equitable. If a land has many legal rights, the more problematic it is for a purchaser to know whether the land they were buying is free of adverse rights. Due to the doctrine of notice, the more equitable rights there are present, consequently making it harder to have property rights. However, equitable rights could dissolve if the legal estate in the land by a bona fide purchaser[15] for value without notice. Another scenario, a purchaser might be considered to have constructive notice of equitable rights even though they might not know. Neither scenario is fair or satisfactory.

The purpose of the 1925 property legislation was to change the system of legal and equitable interests in land. Some of the outcomes where that the legal rights were reduced to two estates and a limited number of interests.[16] A provision for the registrations of interest of land reduced the doctrine of notice; also overreaching[17] was introduced.

Thus, the introduction of the Law of Property Act of 1925 was an important step toward the introduction of the new legal system to meet equitable interests of all land owners. The law aimed at the regulation of relations in the land and real estate market. At the same time, one of the major concerns of legal changes introduced in 1925 was the development of fair legal norms to provide all citizens with equal rights and opportunities to own land and have access to the ownership, purchase and sale of land. At this point, it is worth mentioning the fact that prior to 1925, the position of land owners was unfair and unequal since large land owners turned out to be in an advantageous position compared to minor land owners.

Furthermore, the regulation of legal norms concerning the property right and related issues was essential for the development of the transparent, fair and just legislation establishing not only equal rights and liberties but also providing equal opportunities for all citizens to own land. This legal issue was crucial because the problem of the shortage of land was extremely important for citizens, who wanted to have equal and fair access to land. Instead, the existing legal norms did not match needs of people. In this regard, the introduction of legal changes related to property rights was crucial. The implementation of legal changes was difficult but outcomes of those changes have proved to be successful.

 

Two Sources of Estates of Land

Law of Property Act 1925, s. 1(1)

The only estates in land which are capable of subsisting or of being conveyed or created at law are-

  • An estate in fee simple absolute in possession;
  • A term of years absolute.

 

Law of Property Act 1925, s. 1(3)

All other estates, interests, and charges in or over land take effect as equitable interests.

 

  • Included in the essay

Law of Property Act o 1925. Retrieved from http://www.legislation.gov.uk/ukpga/Geo5/15-16/20

[1] Sandra Clarke and Sarah Greer, Land Law Directions (4th Edn, Oxford University Press 2014) 41.

[2] Law of Property Act 1925, s. 1 (1)

[3] Law of Property Act 1925, s. 1(3)

[4] Victoria Sayles, Land Law (3rd Edn, Oxford University Press 2013) 14.

[5] Walsingham’s Case 75 ER 805

[6] Sandra Clarke and Sarah Greer, Land Law Directions (4th Edn, Oxford University Press 2014)

[7] As seen above.

[8] Statue

[9] Sandra Clarke and Sarah Greer, Land Law Directions (4th Edn, Oxford University Press 2014) 42.

[10] Sandra Clarke and Sarah Greer, Land Law Directions (4th Edn, Oxford University Press 2014) 42.

[11] Interests that come before an estate in time and that are not for the present landowner’s advantage.

[12] Sandra Clarke and Sarah Greer, Land Law Directions (4th Edn, Oxford University Press 2014) 42.

[13] Sandra Clarke and Sarah Greer, Land Law Directions (4th Edn, Oxford University Press 2014) 41.

 

[14] Sandra Clarke and Sarah Greer, Land Law Directions (4th Edn, Oxford University Press 2014 42

15 an innocent party who purchases property without notice of any other party’s claim to the title of that property

16 Law of Property Act, s. 1

17 The process by which interests in land that need not be protected by land registration, but which will bind the proprietor and any subsequent unless overreached.

The terms offer and acceptance. (2016, May 17). Retrieved from

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016.

[Accessed: March 29, 2024]

freeessays.club (2016) The terms offer and acceptance [Online].
Available at:

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]

"The terms offer and acceptance." freeessays.club, 17 May 2016

[Accessed: March 29, 2024]
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