Contract Law Seminar 2

Part 1- Formalities and Remedies



Contract

State the three requirements for a valid contract in land law.

1. Must be made in writing
2. Terms must have been incorporated in this document or in another named
document.
3. Must be signed by each party.
 No witness needed.

Which statute governs these requirements?

 Section 2, Land of Property Act 1989.

At what point in the conveyancing transaction is the seller legally bound to sell his/her
property?

 Once the contract has been exchanged.

Does exchange of contracts transfer ownership of title?

 No, the deed does.


Deed

State the three requirements for a valid deed in land law.

1. Must be explicit that it is a deed; by stating that it’s a deed (wording).
2. Must be signed and witnessed.
3. Must be delivered.

Which statute governs these requirements?

 Section 52, Law of Property Act 1925 – TR1 form.

Consider the scope of s52 LPA 1925. Identify which property transactions must be made by
deed.

 Section 1, Law of Property Act 1989.

On the transfer of a freehold, who is the legal owner immediately following completion? The
seller or the purchaser?

 The seller as the purchaser becomes the legal owner once the deed has been
registered.




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