4.1: Nature of Land Flashcards
What is a ‘deed’?
A document that is required to transfer a legal estate or interest.
Document must clearly be:
1) [Intended] intended to be a deed
2) [Signed] signed by the parties in writing and witnessed
3) [Executed] validly executed
4) [Delivered] delivered as a deed
What is a fixture?
Part of the land - can cause serious damage if removed. Enhances the property (value, appearance). Integral part of the property, such as part of the overall design or essential for the property’s purpose.
What is a chattel?
Independent of the land (personal property). Freestanding items are rebuttably presumed to be chattels.
What is meant by the division of property ownership?
There is dual ownership of the same piece of land at the same time. Legal owner has rights recognised at common law. Equitable owners has rights recognised in equity.
What is the difference between legal and equitable rights?
Legal rights - enforceable as of right.
Equitable rights - Enforceable at the court’s discretion. Enforceable only if the buyer was aware of right (had notice)
Buyer unaware of right is known as ‘equity’s darling’
What are ‘third party rights’?
Owners can create, in favour of others, rights/interests over their land that fall short of ownership of an estate (legal / equitable / statutory)
What is an easement?
A right of way or right attached to a land that benefits the land - imposes a corresponding burden on other piece of land
What is a mortgage?
An interest in land given as security for a loan
What is meant by a trustee?
A trustee has legal ownership of the land. A trustee’s rights are recognised at common law
What is meant by a beneficiary?
A beneficiary has equitable ownership of the land. The rights are recognised in equity.
What is a restrictive covenant?
Promise made by one party (‘covenantor’) in favour of the other party (‘covenantee’) that the covenantor will not use his land in a particular way.
What is an estate contract?
A contract to create or convey a legal estate in the land. There must be all elements in a contract - offer and acceptance (agreement), consideration, intention to create legal relations
What are the tests to determine whether something is a fixture or a fitting?
- Degree of annexation test
- Purpose of annexation test
