Examination Timing: 00H01M59S
Sarah holds 456 Maple Avenue on trust for Emma and James in equal shares in accordance with a trust deed. She is required to dispose of the legal estate to Rachel. Emma wishes to dispose of her equitable interest in the property to Michael. Which of the following statements best describes the position?
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Your selected option: B
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The correct answer is B. The transfer of a legal estate requires that the transfer be effected by deed pursuant to section 52 of the Law of Property Act 1925. A declaration of the trust of land may be made orally, but it will not be enforceable in court unless it is 'manifested and proved' in writing signed by the settlor or by their will (section 53 of the Law of Property Act 1925). The Trusts of Land and Appointment of Trustees Act 1996 provides that all trusts concerning real property are deemed to be trusts of land. Emma's interest will therefore be an interest under a trust of land and must be disposed of in writing according to section 53 of the Law of Property Act 1925.
Key Point: Legal estate transfers require a deed, whereas equitable interests under a trust of land must be disposed of in writing to be enforceable in court.
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