FLK2 · Land Law

Estates & interests in land (legal vs equitable)

SQE1 revision notes — the key rules, leading cases and common traps for this topic, in plain English and current to 2026.

LL.01 — Estates & Interests in Land (Legal vs Equitable)

The two legal estates. Since LPA 1925 s.1(1), only two estates can exist at law: the freehold (fee simple absolute in possession) and the leasehold (term of years absolute). Everything else is either a legal interest (if within s.1(2)) or takes effect in equity (s.1(3)).

The five legal interests (s.1(2)). Capable of existing at law: an easement/profit for a fee-simple or term-of-years equivalent; a rentcharge in possession; a legal charge by way of legal mortgage; certain statutory charges; and rights of entry. An easement granted for an uncertain period (e.g. "for life") can only be equitable.

Legal requires the right formality + the right duration. Even a s.1(2) interest is only legal if correctly created. The general rule (LPA 1925 s.52) is that a deed is needed to create or transfer a legal estate/interest; a deed must comply with LP(MP)A 1989 s.1 (clear it's a deed, signed, witnessed, delivered). Registrable dispositions of registered land must also be completed by registration (LRA 2002 s.27) — until registered, the right is only equitable.

How equitable interests arise.

  • A contract to grant/transfer a legal estate, if it satisfies LP(MP)A 1989 s.2 (in writing, all terms, signed by both), creates an equitable interest — Walsh v Lonsdale (equity treats an enforceable specific-performance contract as already done).
  • Failed legal formality but a valid s.2 contract → equitable lease/easement.
  • Trust interests (beneficial interests behind a trust of land) are equitable by definition (s.1(3)).
  • Estoppel, resulting/constructive trusts generate equitable rights.

Why the distinction matters — enforceability against a buyer.

  • Registered land: legal interests created by registrable disposition need substantive registration; equitable interests bind a purchaser only if protected by a notice on the register or they override (Sch.3 — most importantly an interest of a person in actual occupation, para 2).
  • Unregistered land: most equitable interests are land charges registrable under LCA 1972 (void against a buyer if not registered); legal rights generally bind the world.

Common traps.

  • "Legal" needs both a permitted estate/interest type and correct formality/registration — getting one right is not enough.
  • A "lease for life" is not a term of years absolute (LPA 1925 s.149(6) converts it to a 90-year term).
  • Equitable easements in unregistered land are registrable land charges; don't assume they bind automatically.
  • Short legal leases (3 years or less, taking effect in possession, best rent, no premium) are an exception to the deed rule (LPA 1925 s.54(2)) — valid legal leases created orally.

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Three friends — Anya, Ben and Carl — buy a house together as legal and equitable joint tenants. Relations between them sour. Anya writes a letter to Ben and Carl stating: 'I am hereby severing my joint tenancy in the house with immediate effect and I wish to hold my share separately from now on.' She signs and dates it and posts it by ordinary first-class post to the house, where all three live. The letter is delivered and Ben reads it. Carl, who is away, never sees it because Anya later retrieves the letter and destroys it before Carl returns. Which of the following best describes the effect of Anya's letter?

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More Land Law topics

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Independent SQE1 revision notes for study — not legal advice; check primary sources before relying on any point. Exam rules are set by the SRA; see the official SQE site.