1. The Nature of Land Flashcards
DEF: Incorporeal Hereditaments
Things that cannot be felt but are nevertheless an interest in land
DEF: Chattels
An item of moveable property
Fixture or Chattel: 2 stage test
(1) Method and Degree of Annexation
- There must be some degree of physical annexation to land in order for item to be a fixture (whatever is attached to the soil becomes part of it)
- raise presumption of fixture
- more strongly attached, stronger the presumption
(2) Purpose of Annexation
- If purpose is to enhance realty, item is a fixture
- If purpose was to enjoy item better in itself, chattel (SECOND STAGE MORE PERSUASIVE)
Two estates in Land recognised by Law
s 1(1) LPA 1925:
- Estate in fee simple absolute in possession (Freehold)
- A term of years absolute (leasehold)
Creating legal estates and interests: general rule
s 52(1) LPA: A deed is required:
- Clear on face that it is intended to be a deed
- Signed witnessed (by one witness) and delivered (delivery can be a matter of intention, not physical)
Parole Lease requirements
- Lease granted for 3 years or less (includes periodic lease where period is 3 years or less, eg. monthly)
- Can be done orally
- Has to take effect immediately, and in possession,
- granted best rent reasonably obtained (market rent) without premium
DEF: Mortgage
An interest over land granted by the borrower to the lender as security for a
loan. If the borrower fails to repay the loan, the lender can enforce its security
DEF: Restrictive Covenant
A promise by one landowner in favour of another landowner that they will not do certain things on the land. For example, not to use the land for any use
other than a private home.
DEF: Easement
A right for one landowner to make use of another parcel of land for the benefit
of their own land. For example, a right of way.
Profits / Profits a prendre
a right to go on to somebody else’s land and remove from the land something which exists naturally. For example, a right to catch
and take fish or a right to graze animals. (or mining)
DEF: Resulting trust
A person, who is not the legal owner, contributes directly to the purchase price of
the property. The person acquires an interest proportionate to their contribution.
Constructive Trust
An interest in land is created when a person, who is not the legal owner of the property, makes a contribution to the property other than a direct financial
contribution at the time of the purchase. This can include contributing to the mortgage payments or making substantial improvements to the property.
DEF: Estate Contract
A contract to convey or create a legal estate including an option to purchase. Normally occurs between the two stages of sale and purchase of land (contracts are exchanged, buyer holds equitable interest but not legal interest as completion / transfer has not occurred)
DEF: Option
An option enables the owner of the option to insist that the land is sold to them at any time during the fixed period of the option (the period must not exceed
21 years). An option fee is usually payable, but the full purchase price only
becomes payable if the option is exercised.
DEF: Alienation
The sale or underletting of leasehold land
