Property and Real Estate Laws - Essay Example

Land law essay al affiliation) The United Kingdom statutes pertaining to land laws stipulate that all tenancies orleases at a rent for a number of years are to be granted by a mortgagee or mortgagor based on settled land act of the year 1925. The estate owner may be granted power over lease granting although he is not to impose any liability that is considered personal .William has applied for a loan and used the piece of land he owns as security the two hundred thousand pounds by the Loamshire building society. The loan is to be secured by a legal charge over the abbey farm the same as Simon’s loan which has not yet been repaid. Charlotte, who is William’s solicitor, is unaware of the previous arrangements done on the property1. Charlotte has acquired a register of the title to Abbey farm from the land registry. The register however does not show any connection of the farm with previous loan associated with Simon who is William’s brother. A mortgage entail transferring land interest as security for other obligation or loan as stipulated in a case of ROPAIGELACH v BARCLAYS BANK (2000). The court accorded the mortgagee a right over the property even in the absence of the mortgagor. Property and real estate laws cover a diverse legal area that is regulated by the common laws and statutes. Real estate is mostly linked with buildings or structures and the land. Real estate comprises land and the materials belonging to it. Immovable structures such as trees, houses, minerals and bushes attached to the land are part of it2. Owning a real estate comes with benefits such as rights and interests associated with it. Land and the attached properties have been utilized as security for loans in various occasions. William is utilizing his Abbey farm as security toward the loan acquired from the Loamshire building society. William is the mortgagor while the mortgagee is Loamshire building society. The society is providing loan in exchange of security interest3. Most lending societies usually set the maximum amount of money that can be borrowed and used as security. If the property to be used as security has a mortgage, a second charge is utilized. In reality the first mortgage ranks before the second charge created in partnership between William and the society. Since the registry applied by charlotte does not include Simon’s loan and the security information. It will be a challenge for Mark to defend Simon as a solicitor in cases where the security is not indicated. The law governing mortgage is aimed at preventing criminals from taking an advantage of less informed people pertaining to security for loans. Land law involves developing the land or property after being acquired. William is a registered proprietor of abbey farm, bridgwater, Somerset. The property is made up of a large house, an outbuilding, a barn a field and a meadow4. William has a right over the ownership of the abbey farm together with Julia who paid a ten percent deposit in the year 2004. Real estate laws in the United Kingdom assist clients to manage their liability and rights over their piece of land or property. William is utilizing his ownership rights according to the real estate law to get a loan using his property as security. The society is a mortgagee while William is the mortgagor. The 1925 enacted act encouraged land title registration. The goal of the legislation was to promote land ownership and transfer security. William has a right over the abbey land and can use it a security for loans. Modern land law is linked to the 1925’s land registry act. The various economic and social changes have given rise to the development of land registration act in the year 2002. Land includes all the properties belong to it, the privileges, rights and benefits derived from it according to the act of 1925. However, William has ended up misusing the rights by failing to mention and give conclusive information pertaining to the abbey land. He fails to indicate Simon’s interest in the previous agreement5. Simon has an interest in the Abbey land even though the papers which can be used as evidence over the contract are missing. Mark is the only evidence and is aware of the transaction that took place between the mortgagor and mortgagee. The interest of Simon over the abbey farm still exists until that time when he will be paid his loan. Land law is defined as study of transfer, creation, termination and operation of rights associated with the ownership. A mortgage is a considered a contract between the mortgagee and the mortgagor. The law takes into account the ownership of a piece of land belonging to a certain person for a certain period of time. Such cases may occur as a result of an agreement between the owner of the piece of land and the person interested. The owners of the land are considered the landlord while the other person leasing the land is called a tenant. William as a landlord entered into a number of arrangements after purchasing the farm6. In April 2011, the outbuilding was leased to Henry for a period of 6 years. Both William and Lynne entered a written agreement for a grant of a four year licence of the meadow at a monthly payment of a hundred pounds. Lynne was to use the meadow for the purpose of grazing her sheep. In June 2013, he granted a tenancy to Timothy of the barn from first of June to thirtieth April of 2016. Timothy was to pay a sum of a thousand pounds and a rent of five thousand pounds a year. The landlord and the tenant are required to sign a contract and abide to it. The land laws permits the tenants to have rights over the benefits provided by the piece of land or the properties in the land for the stipulated period of time. The law asserts that a contract is enforceable between the tenant and the landlord after they enter a contract aimed at developing propriety rights. The three people who have made the contract with William are to enjoy the privileges presented by the piece of land until the contract time expires. They have a right of being informed of any changes targeting the piece of land. According to the land and property act of 2002, Fraud basically involves two parties that are brought together in an agreement. One party provides false information while the other party utilizes the information with an intention of completing a transaction. William is hiding some of the vital information from charlotte whom he depends on as a solicitor7. We are informed that the solicitor is unaware of the previous development on the Abbey farm. William has committed a fraud through entering an agreement with an intention of acquiring a loan by providing false, inaccurate and incomplete information to the Loamshire building society which is a lending institution in this context8. When William is accorded a loan by the lending institution, the institution will need security for the loan. Effective security allows the lender to re-poses the property in the event where the borrower fails to repay the capital as agreed. Under the mortgage context, the ownership of the property is transferred to the lender until the charge is complete. The move prevents the owner from disposing the asset. The mortgage does not call for possession delivery and therefore intangible and tangible assets can be mortgaged. A mortgage is considered legal when security property in question is available at the time when the deal is being sealed9. The possession of the property is more often transferred to the lending institutions which act as security and prevent the owner from selling it until the repayment is done. Charge is usually utilized as a term considered generic in most security interest types. A charge usually represents an arrangement between the owner of the property and the lending institution. A primary charge exists between William and Loamshire building society. The charge however does not include the previous arrangement made between William and Simon under the guidance of mark as a solicitor. A charge does entail ownership transfer or asset possession as per the land and property act of 200210. Most people may not like being denied possession of their properties same as the lenders for practical reasons. The lender may instead obtain rights toward the asset used as loan security. All these information are vital in deciding the amount of loan William is to be awarded. Julia who is William’s partner is to be part of the agreement. Julia’s interest will not be binding since according to William, he stays alone11. The interest could only be binding in cases William includes her in the agreement as a partner. The rights of Julia have also been infringed. Julia being William’s partner due to her contribution toward the abbey farm can determine the Loamshire building society legal charge decision. She can file a case to prevent the agreement from materializing due to her absence in the agreement. Henry’s interest is binding in the agreement. The farm has an outbuilding that was leased to him for a period of six years. The farm is part of security for the loan being requested by William. Since the outbuilding is located in the farm and the agreement is still in progress. The outbuilding is considered part of the farm according to the law and will be sold in cases where William fails to repay the loan. Timothy’s tenancy which runs till the year 2016 may not be legally binding in the Loamshire building society legal charge. The agreement between the two is not documented and was only done orally. He was granted the tenancy of the barn which is located in the Abbey farm. The agreement between the two may not be part of the LBS’s agreement and thereby in cases of compensation, he may not be considered12. He pays a rent of five thousand pounds in a year. Simon’s agreement may not be legally binding. Firstly, the information documented by Mark as a solicitor is missing after his office was flooded and the files lost in the process. William is said to have forgotten to include Simon’s agreement in the new charge being signed. The agreement between William and the Loamshire building society is being considered as a first charge over Abbey farm. Simon’s agreement no longer exist in Williams plans. Charlotte is a new solicitor and was not involved in the previous agreement. The information pertaining to Abbey farm from the land registry does not indicate any previous legal charge. A mortgage is used as part of debt repayment13. A mortgage grant gives the mortgagee an interest over the property and the property can be sold in an event where the mortgagor fails to repay the capital acquired. Legal mortgage is part of the Land and Property Act of 192514. William will have to pay Simon’s loans before entering into another contract with the Loamshire society. The interest of Simon toward the property should be mentioned in the new contract as stipulated in the mortgage laws. The land and property act of 1987 stipulate that a contact between a landlord and a tenant over land or property belonging to any land has to be in writing. Oral contracts may not be valid in case of law due to lack of evidence. In case of Keay v Lawrie limited, it was suggested that any changes to the contract should be included in the written document which comprised of the previous agreements. William has to include the changes he has made toward the abbey farm by utilizing it as security toward the two contracts and the previous agreements15. Despite a mortgage being a contract, it is also considered a proprietor’s interest towards the piece of land. Both Simon and Loamshire society have an interest over the abbey farm despite not being aware of each other. The first contract on many occasions will be considered valid unlike the second contact as stipulated by the land and property act of 1925. The land and property act of 2002 allows the mortgagee to take full interest over the piece of property in the event of the mortgagor failing to pay the amount of money. Simon has a right over the ownership of part of the land in an event where William is unable to repay the money. Lack of evidence however may make the approach difficult but he may use Mark as a witness to help him reclaim the loan amount offered to his brother as stipulated in the land and property law of 1925. In the Case of WANBOROUGH v GARMITE (2003), the judge asserted that the interests of the mortgagee toward the property must be directed by the contract signed. The contract between Loamshire society and William is based on the mortgaged property16. The other case of STEEPLES v LEA (1998), asserts that the consent of the mortgagor should be offered freely during the agreement. The mortgagee should not force the mortgagor from making their own decision. William has consented toward the agreement signed in both the contracts that he was involved in and should therefore repay the loan. Works Cited Cowling, Marc. "The incidence of loan collateralization in small business lending contracts: evidence from the UK." Applied Economics Letters 6, no. 5 (1999): 291-293. 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