Legal estates and equitable interests

(1) After the commencement of this Act, the only estates in land which are capable of subsisting or of being created or transferred at law are, (a) an estate in fee simple absolute in possession; and (b) a term of years absolute. (2) After the commencement of this Act, the only interests in or over land which are capable of subsisting or of being created or transferred at law are, (a) an easement, right or privilege in or over land for an interest equivalent to an estate in fee simple absolute in possession or to a term of years absolute; (b) rights of entry exercisable over or in respect of a legal term of years absolute, or annexed for any purpose to a legal rent charge. (3) After the commencement of this Act, the only charges in or over land which are capable of subsisting or of being created or assigned at law are, (a) a charge by way of legal mortgage; (b) a rentcharge in possession issuing out of or charged on land being either perpetual or for a term of years absolute; (c) a charge on crops; 14 (d) land tax and any other similar charge on land which is not created by an instrument. (4) All other estates, interests and encumbrances in or over land shall take effect as equitable interests. (5) Legal estates have the same incidents as legal estates subsisting at the commencement of this Act.