Equity and Trust

Running head: EQUITY AND TRUST
Equity and Trust
Name of the Student
Name of the University
Authors Note
Course ID

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Table of Contents
Answer to question A:................................................................................................................2
Answer to question B:................................................................................................................6
References:...............................................................................................................................11

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Answer to question A:
The “Law of Property Act 1925” is the Parliamentary act which was introduced to
low down the number of legal estates to two and enable the transfer of interest in land easy
for the purchasers1. The general principles to the legal estates, equitable interest and powers is
the easement right or privilege in the land for the equitable interest of an estate. A
conveyance to the purchaser of the legal estate in the land should overreach any form of
equitable interest and power impacting the estate whether or not the property holder has the
notice of conveyance for the powers conferred under the “Settled Land Act 1925”.
The current case study is based on Olga and Marcus that had planned to purchase a
house in their joint names. However, due to the poor credit rating of Marcus they were
advised to hold the legal title of the house in the name of Olga. The property was bought for
the purchase price of £300,000 out of which £200,000 was inherited by Olga from her aunt
while the rest was funded from the mortgage loan. Following the purchase of the house both
Olga and Marcus lived together. Marcus also maintained the house and garden, paid for the
central heating that were to be installed and also paid for the construction of conservatory. As
noticed in the case study Marcus also contributed half of the mortgage payment in his sole
name.
As evident in the case of “Dearle v Hall (1828)” the English common law rule
provides an explanation to the determination of priority between the competing equitable
claims to the same asset2. The rule vividly explains that where there is an equitable owner of
the asset rationales to dispose the equitable interest the equities will be held equal among the
claimants. The rule stated in the case of “Dearle v Hall” has generally been treated
1 Drahos, Peter. A philosophy of intellectual property. Routledge, 2016.
2 Bridge, Michael. Personal property law. OUP Oxford, 2015.

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controversial ever since it was introduced3. Nevertheless, this has not prohibited the rule from
being extended to the rule that regulates the priority interest in the property such as rights
under the contracts that are considered important in the modern age of commerce.
The English “Property Act 1925” provides under the equitable interest and things in
action that the subject of execution relating to disentailing of assurance or the executing the
testamentary power that is conferred by the act, a required interest shall result in equitable
interest4. In other words, the act confers an entailed interest till the extent the property is
affected would transfer the legal interest from time after time on those persons that are
successfully entitled to as their heirs.
According to the English “Property Act 1925” a mortgage of the asset in the form of
fee shall be capable of being affected by law either in the form of demise relating to the
absolute terms of years or may be subjected to the provision for cesser on redemption or in
terms of the charges of deed that is expressed in the form of legal mortgage5. The act
provides that the first mortgage would possess the similar right of possess of documents in
the form of security included in the mortgage fee. Without the prejudice to the provision of
the act with respect to the legal and equitable powers every power of mortgage and lend the
money on mortgage of the estate in the form of fee would be construed as the power to
mortgage based on the terms of years or by way of the legal mortgage.
3 Jackson, Paul, and David C. Wilde, eds. Property law: current issues and debates. Routledge, 2018.
4 Dratler Jr, Jay, and Stephen M. McJohn. Intellectual Property Law: Commercial, Creative and Industrial Property. Law
Journal Press, 2018.
5 Means, Gardiner. The modern corporation and private property. Routledge, 2017.