Basics of PLP

Question 1

What is freehold?

Answer 1

A right of absolute ownership of land, which is indefinite

Question 2

What is leasehold?

Answer 2

A right to own land for a fixed period of time.

Question 3

How is a leasehold granted and what happens after the period of time expires?

Answer 3

It is granted through a legal agreement with the freeholder.

The property reverts back to the freeholder.

Question 4

What is registered land?

Answer 4

Land that has been registered with HM Land Registry.

Question 5

Where can you find details of registered land?

Answer 5

On the Land Register on the government website

Question 6

What is unregistered land?

Answer 6

Land that has not been registered with HM Land Registry

Question 7

Registered Land makes up roughly 89% of all land in England and Wales. Why?

Answer 7

since 1926 it is required to register land when a trigger event occurs, such as the sale of land

Question 8

What are easements?

Answer 8

The right that a third party has to do something or prevent something on land belonging to someone else

Question 9

What is an example of an easement?

Answer 9

A right of way - allows the person with the benefit of easement to travel over someone else’s land. The person that has the burden of easement, the landowner, cannot obstruct the right of way.

Question 10

What is a dominant tenement?

Answer 10

The land with the benefit of the easement. (e.g. a neighbouring landowner that has right of way over your property)

Question 11

What is a servient tenement?

Answer 11

The land with the burden of easement (e.g. the land that is subject to the right of way)

Question 12

How can easements be created?

Answer 12

Expressly
Impliedly
By long user

Question 13

What is a covenant?

Answer 13

An enforceable promise

Question 14

What are positive and restrictive covenants?

Answer 14

A positive covenant requires someone to do something
A restrictive covenant prevents someone from doing something

Question 15

What are the 2 essential aspects of a covenant?

Answer 15

A benefit and a burden

Question 16

What does it mean for a covenant to run with the land?

Answer 16

If it runs with land, then it will bind a subsequent purchaser of the land

Question 17

Does a positive covenant run with the land?

Answer 17

No

Question 18

Does a restrictive covenant run with the land?

Answer 18

Only if the rule in Tulk v Moxhay (1848) 2 Ph 774 applies

Question 19

What is the rule in Tulk v Moxhay?

Answer 19

The burden of a restrictive covenant over registered freehold land will always run with the land IF the restrictive covenant appears on the Register of Title.

Question 20

What should you do if you are acting for a purchaser of land and discover through the Title Register that the land has a restrictive covenant?

Answer 20

Advise the client on what this means

Question 21

Co-owned land is always held on trust. What are the 2 types of trust of land?

Answer 21

Joint tenancy
Tenancy in common

Question 22

What is joint tenancy?

Answer 22

Both tenants own 100% of the property. They will split the proceeds of the property evenly and when one dies, the other tenant automatically inherits the rest of the share (survivorship)

Question 23

What is tenancy in common?

Answer 23

Tenants in common each own distinct shares in the property, e.g. 30% and 70%. When one dies, their share will pass under their will or through intestacy rules.

Question 24

What is form A restriction?

Answer 24

This is a restriction in the proprietorship register on the register of the title placed when co-owners wish to become tenants in common.

Question 25

What is the consequence of a form A restriction?

Answer 25

Any sale of the property will need to be effected by 2 trustees.
If one dies and the other wants to sell, they will need to appoint a second trustee before completion.

Question 26

What happens if there is no form A restriction on the register?

Answer 26

The buyer is entitled to assume that the co-owners were joint tenants and proceed accordingly.

Question 27

What is a mortgage?

Answer 27

A legal agreement in which a bank lends money to the buyer.

Question 28

What are the conditions of a mortgage?

Answer 28

Repay the loan
Pay interest on the loan
Grant the lender (the bank) title to the property as security until the debt is discharged (This just means by whatever means that the debtor is no longer responsible for it, e.g. it has been paid fully)

Question 29

What happens to a mortgage when you act on behalf of the buyer?

Answer 29

It is inherited by the buyer

Question 30

What can the lender do if the debtor can not pay for the mortgage?

Answer 30

Sell the property