Interest in Land in UK Law

Even to hold that they have equitable interests in the land for a limited period, namely until the land is sold, would, we think, be inconsistent with the trust for sale being an "immediate" trust for sale working an immediate conversion, which is what the Law of Property Act envisages (see Section 205(1) (xxix)), though, of course, it is not in fact only such a limited interest that the Appellants are seeking to charge.

The first and fundamental question which must always be resolved is whether, independently of any inference to be drawn from the conduct of the parties in the course of sharing the house as their home and managing their joint affairs, there has at any time prior to acquisition, or exceptionally at some later date, been any agreement, arrangement or understanding reached between them that the property is to be shared beneficially.

Plainly there are large areas where the two concepts do not overlap : when a landowner stands by while his neighbour mistakenly builds on the former's land the situation is far removed (except for the element of unconscionable conduct) from that of a fiduciary who derives an improper advantage from his client. But in the area of a joint enterprise for the acquisition of land (which may be, but is not necessarily, the matrimonial home) the two concepts coincide.

If this is right, the pieces of the jigsaw fit together reasonably well. A purchaser or mortgagee inspects and enquires before completion, in the established fashion. If it does not, then subsequent entry of a person into occupation before the transfer or mortgage has been registered (and "completed" for the purposes of section 19) does not have the consequence of creating an overriding interest under paragraph (g) in relation to that freehold or mortgage.

It is clear, at least, that the interests of the co-owners under the "statutory trusts" are minor interests—this fits with the definition in section 3(xv). But I can see no reason why, if these interests, or that of any one of them, are or is protected by "actual occupation" they should remain merely as "minor interests". And, moreover, I find it easy to accept that they satisfy the opening, and governing, words of section 70, namely, interests subsisting in reference to the land.

In my judgment, upon the true construction of section 63 a beneficial interest in the proceeds of sale of land held upon the statutory trusts is not an interest in that land within the meaning of the section and a conveyance of that land is not effectual to pass a beneficial interest in the proceeds of sale.