1): Freehold and Leasehold Estates, and Legal and Equitable Interests in Land Flashcards
What is real property?
All land-related property rights except leases.
Includes fee simple estates, mortgages, easements.
What is personal property?
All property other than land e.g. goods, money, shares, leases, chattels.
What test distinguishes fixtures from chattels?
Two-stage test:
i. Degree of annexation – how firmly affixed is the object?
ii. Purpose of annexation – to improve land (fixture) or for use/enjoyment (chattel)?
Are fixtures included within land?
yes but chattels are personal property
What is an estate in land?
time-limited right to possess and use land:
Freehold (fee simple absolute in possession): perpetual ownership
Leasehold (term of years absolute): fixed or periodic term of use
What is an interest in land?
non-possessory right over land owned by someone else.
Legal interests: listed in s.1(2), LPA 1925 (e.g. easements, mortgages, rights of entry)
Equitable interests: e.g. restrictive covenants, estate contracts, beneficial interest under a trust
How is a legal estate created or transferred?
By deed, per s.52(1) LPA 1925. The deed must:
Be clear on its face that it is a deed
Be validly executed: signed, witnessed (by one witness),
and delivered (s.1, Law of Property (Miscellaneous Provisions) Act 1989)
What is the exception to the deed rule for short leases?
Under s.54(2), LPA 1925, no deed is required if:
The lease is less/equal to 3 years
The tenant has immediate possession
Market rent is paid
No fine or premium is charge
When is an estate equitable?
If it doesn’t appear in s.1(1) or s.1(2) LPA 1925, it’s not legal.
To create/transfer it, the correct formalities must be followed under s.53(1)(b), LPA 1925 – i.e. in writing signed by the donor.
What is an estate contract?
A contract to buy land.
Once exchanged, equity treats buyer as having an equitable interest between exchange and completion.
If the contract is breached, buyer may claim specific performance if:
The contract is valid
The buyer has “clean hands” (no misconduct)
How is a legal interest in land created/transferred?
By deed (s.52(1) LPA 1925).
Must meet s.1 LP(MP)A 1989:
Deed on its face
Signed, witnessed, delivered
How is an equitable interest in land created?
It must meet one of the following under s.53 LPA 1925:
i. Express trust – in writing and signed
ii. Valid contract (e.g. to create a legal interest but lacking formalities)
iii. Failed legal interest – treated as equitable interest
iv. Grant only in equity – must comply with s.53(1)(b)
v. Estoppel – proprietary or constructive
vi. Implied trust – no writing needed under s.53(2)
How are third-party interests protected in registered land?
Must be entered on the Land Register to bind purchasers
Some overriding interests (e.g. actual occupation) bind even without registration
How are third-party interests protected in unregistered land?
Legal interests bind automatically
Equitable interests must be registered as Land Charges under Land Charges Act 1972 to bind a purchaser
If not registered and purchaser gives value without notice → interest lost
What is a Freehold (Fee Simple Absolute in Possession)?
Absolute estate in land
Gives immediate possession
Not conditional
Can be passed on
What is a Leasehold (Term of Years Absolute)?
Right to exclusive possession for a fixed or periodic term
Automatically renews unless terminated
Granted out of a freehold or longer leasehold
