Basics Flashcards
What are the characteristics of Freeholds?
Best form of ownership. Fee simple absolute in possession. Lasts until the owner dies with no heirs. Can use, sell, gift or dispose of the property as they wish.
What are the characteristics of a Leasehold?
- Term of years absolute.
- Granted by someone who has an estate in land (freehold or leasehold) to someone else for a period of time.
- The requirements for a lease are certainty of term and exclusive possession BUT NOT RENT.
What are the Legal Interests in Land?
(1) Legal mortgage
(2) legal easement granted for a time equal to freehold or leasehold
(3) Right of forfeiture.
(4) legal lease
What are the Equitable Interests in Land?
(1) Both positive and restrictive freehold covenants
(2) Land contracts
(3) easements granted for less than equivalent to a freehold or leasehold
(4) Interest in a trust in land
What are the formalities for creation of a lease?
- Contract
* in writing
* incorporating all terms +
* signed by both parties) - deed
* clear as deed on face
* witnessed
* attested
* delivered (dated) .
For legal lease terms of less than 3 years, need not use a deed to convey it if it takes effect in possession immediately, there is no fine or premium and granted at best market rate.
If lease formalities not complied with/inherently equitable lease
Tenant has equitable lease if short lease exception doesn’t apply and they have contract in writing incorporating all terms and signed by both parties + remedy of specific performance is available.
What are the registration requirements for different leases?
Lease for 7+ years = must register to make it legal.
Least for between 3 and 7 years term = need not be registered to be legal, takes effect as an overriding interest.
What are the essentials of a Lease?
- Certainty of term (must be defined by reference to clear, specific term) +
- exclusive possession (for residential, means asking whether there is unrestricted access by landlord, sharing clause or relocation clause), for businesses, do they retain sufficient degree of control?
What is Land?
(1) minerals and ground below up to 300m deep
(2) Air space up to height that is necessary for the reasonable use and enjoyment of the property
(3) corporeal hereditaments (fixtures but not chattels).
What is the test to determine whether something is a fixture or a chattel?
(1) Degree of Annexation Test = raises a presumption that the more attached to the land the thing is, the more likely it is to be a fixture. If cannot be removed without being destroyed/demolished = fixture. If it has become part of the architectural design of the land = probably a fixture.
(2) Purpose of Annexation = more important test and can rebut the presumption. If it is for use and enjoyment of the land, to add value or amenity in some way, likely to be a chattel. If intended to be permanent addition, more likely to be fixture. Examples of Chattels = kitchen appliances, paintings, curtains and other decoration.
When does legal title to a freehold pass?
Unregistered Land:When deed of transfer delivered (dated) for unregistered land, legal title passes at this point, triggering a requirement to register the land for the first time. Must then register land at Land Reg within 2 months months of completing deed or title reverts back to seller (ss 4 and 6 LRA 2002).
Registered Land:For registered land, title passes at the point that the buyer registers the deed at the Land Registry.
What are the events triggering compulsory FIRST registration?
- Transfer for value or as a gift of freehold;
- Transfer for value or gift of legal lease with more than 7 years to run;
- Lease granted to take effect more than 3 months after it is granted even if they are of a duration shorter than that which would normally require registration.
Which dispositions must be registered?
- A transfer of land;
- Lease with more than 7 years still to run
- Lease to take effect in possession after the end of 3 months beginning with date of grant;
- Legal easements;
- Grant of a legal charge (mortgage).
