2. Estates and Interests in Land

Question 1

Who owns all land in England and Wales?

Answer 1

The Crown

Question 2

If the Crown owns all the land, what is the term given to a landowner’s interest in their land?

Answer 2

An estate

Question 3

What are the two estates under the Law of Property Act 1925?

Answer 3

1. Freehold estate (fee simple absolute in possession)
2. Leasehold estate (term of years absolute)

Question 4

In terms of duration, what is the difference between a freehold and leasehold estate?

Answer 4

Freehold is for an uncertain duration. Leasehold is for a fixed duration.

Question 5

To have a better understanding of freehold estates for the purposes of tricky questions, what does the fee mean in fee simple absolute in possession?

Answer 5

That it can be inherited

Question 6

What does the simple mean in fee simple absolute in possession?

Answer 6

That it can be inherited by anyone

Question 7

What does the absolute mean in fee simple absolute in possession?

Answer 7

It will not end on a certain event

Question 8

What does the in possession mean in fee simple absolute in possession?

Answer 8

Immediate and present enjoyment

Question 9

Separate from the two legal estates do (1) legal interests or (2) equitable interests confer ownership of land?

Answer 9

No, they concern rights over land the legal estate of which is held by another

Question 10

What are the five categories of legal interest, and only how may they be created?

Answer 10

1. Mortgage
2. Easement
3. Rentcharge
4. Right of entry
5. Profits a prendre

Must be created by deed.

Question 11

What is a rentcharge?

Answer 11

An interest in land requiring the landowner to make a periodic payment in respect of land to the rentcharge owner, but is different to and cannot arise under a lease or tenancy

Question 12

What does the the rentcharge owner’s right of entry allow him to do?

Answer 12

Enter and take possession of the premises in the event of a default

Question 13

What is a profit a prendre and what are the two types?

Answer 13

An interest in land enabling someone to take something from the land of another

1. Profit a prendre in gross
2. Profit a prendre appurtenant

Question 14

What is the difference between a profit a prendre in gross and a profit a prendre appurtenant?

Answer 14

Profit a prendre in gross:
- Exists independently of the land
- Can be exercised for personal benefit of the profit owner
- Can be bought and sold separately from the land
- Not attached to any piece of land

Profit a prendre appurtenant:
- Attached to a particular piece of land
- Is bought and sold with the land

Question 15

What is a common situation in which an equitable interest may arise by accident?

Answer 15

When parties attempt to create a legal interest by deed, but the formalities for a deed are not met

Question 16

For interests created after 1925 and interests which are not a beneficial interest under a trust, what is required for an equitable interest to be binding?

Answer 16

Notice. And other than the two examples, this requires the interest to be registered, otherwise there is no notice.

Question 17

What are the three types of equitable interest?

Answer 17

1. Equitable mortgage
2. Covenant (restrictive or positive)
3. Estate contract

Question 18

Is the deposit of title deeds as security for a loan enough to create an equitable mortgage, and why?

Answer 18

No, because:

1. Equity requires sufficient evidence in writing before an equitable mortgage can be created
2. A contract for property must be in writing, and in this situation there is no written agreement capable of enforcement

Question 19

What does the term concurrent interests describe?

Answer 19

The fact that a number of legal and equitable interests can exist in land at the same time

Question 20

In addition to the usual requirements of a contract, what two things are required for a contract for the sale of land to be valid?

Answer 20

1. In writing and include all the terms to which the parties have agreed
2. Be signed by all the parties or someone on their behalf

Question 21

What is a deed?

Answer 21

A written document used to create a legal interest or right in land, or transfer ownership of land, or by which an obligation relating to land is confirmed

Question 22

What three things are required for a deed to be valid?

Answer 22

1. In writing
2. Clearly intended to be a deed
3. Duly executed as a deed

Question 23

What are the two requirements for a deed to be duly executed?

Answer 23

1. Signed in the presence of an attesting witness
2. Delivered

Question 24

When is a deed delivered?

Answer 24

When the party expresses an intention to be bound by the deed

Question 25

In what four situations is a deed not needed to transfer property?

Answer 25

1. Assents by personal representatives
2. Disclaimers under the Insolvency Act 1986
3. Surrenders by operation of law
4. Leases, tenancies or other assurances not required by law to be in writing