Legal & equitable interests
Whether an interest is legal or equitable determines both its creation formalities and how it binds later owners. The distinction runs through the whole of land law.
What "Legal & equitable interests" covers
- LPA 1925 s.1(2) lists the only interests capable of being legal: easements/profits for an estate equivalent, charges by way of legal mortgage, and certain rentcharges/rights of entry.
- A legal interest generally requires a deed (LPA 1925 s.52) and, where registered land, completion by registration (LRA 2002 s.27) for dispositions required to be registered.
- Equitable interests arise where the s.1(2) requirements are not met, under a trust, or from a specifically enforceable contract (Walsh v Lonsdale).
- A deed must be clear on its face that it is a deed, be signed, witnessed and delivered (LP(MP)A 1989 s.1).
- An estate contract must comply with LP(MP)A 1989 s.2: in writing, incorporating all agreed terms, signed by both parties.
- Legal rights historically bound the world; equitable rights bound all except a bona fide purchaser of a legal estate for value without notice (the equity's darling).
- In registered land the doctrine of notice is largely replaced by the registration/overriding-interest scheme.
Key cases & statutes
The authorities and provisions most likely to matter for this subtopic:
How it's tested in SQE1
SQE1 uses single best answer questions: a short factual scenario, one precise question, and five options of which only one is the best answer on the law applied to the facts. For legal & equitable interests, expect to be asked what the correct legal position is, what a party may or must do, or which outcome follows — with more than one option looking arguable. Reading the facts carefully and eliminating the near-misses is the skill that earns the mark.
Where candidates lose marks
- Assuming a right is legal without checking both s.1(2) status and the required formalities.
- Forgetting that a registrable disposition is not legal until registered (LRA 2002 s.27).
- Applying the bona fide purchaser doctrine to registered land, where the LRA priority rules govern instead.
Learn this subtopic in the course
A video lesson, notes and exam-style practice on legal & equitable interests.
FAQ
Is legal & equitable interests tested on SQE1?
Yes — legal & equitable interests is part of the SQE1 Land Law syllabus (FLK2) and can appear in single best answer questions.
How is legal & equitable interests examined in SQE1?
SQE1 tests it by application: you're given a realistic scenario and choose the single best answer from five options. The focus is on using the law correctly, not reciting it — knowing the leading authorities (LPA 1925 s.1(2), LPA 1925 s.52) helps.