Chapter 2: Estates and Interests in Land

Question 1

What are the two legal estates in land?

Answer 1

• Freehold estate
• Leasehold estate

Question 2

What is commonhold?

Answer 2

• Freehold ownership of individual flat
• Common areas are owned and managed jointly by flatholders known as a commonhold association

Question 3

What three conditions must be fulfilled to create commonhold?

Answer 3

• Freehold estate must be registered as ‘freehold estate in commonhold land’
• Land must be specified in Memorandum of a Commonhold Association
• Must be Commonhold Community Statement which provides for rights and duties of Association.

Question 4

There are five categories of legal interest which generally must be created by deed. What are these? (MERRP)

Answer 4

• Mortgages
• Easements
• Rentcharges
• Rights of entry
• Profits a pendre

Question 5

What are rentcharges (legal interest)?

Answer 5

• Chief rent
• Gives rentcharge owner a right of entry
• If there is a default, rentcharge owner can enter premises and take possession

Question 6

What is a Profit à prendre in gross?

Answer 6

• Right is not attached to a particular piece of land.
• Can be registered at the Land Registry with own title.

Question 7

What is profits à prendre appurtenant?

Answer 7

• Right attached to land.
• Cannot be registered at the Land Registry with own title.

Question 8

What equitable interests can a person have in relation to a property?

Answer 8

• Equitable mortgage
• Restrictive covenant
• Positive covenant
• Estate contracts

Question 9

When will an equitable mortgage arise?

Answer 9

When there is a contract for land. This must be:
- In writing
- Signed by both parties
- Contain all agreed terms

Question 10

Are restrictive covenants binding?

Answer 10

Restrictive covenants may be enforceable against subsequent buyer in equity, but only if they have notice of the covenant.

Question 11

Are positive covenants binding?

Answer 11

Positive covenants are generally not binding due to the doctrine of privity of contract.

Question 12

What are the four requirements of a valid deed?

Answer 12

• In writing
• Make clear on its face that it is intended to be a deed
• Signed by grantor in the presence of a witness who attests signature
• Delivered (show an intention to be bound)

Question 13

What are the elements of a valid contract for the sale of land or an interest in land?

Answer 13

• Be in writing
• Include all terms to which parties have agreed
• Signed by contracting parties or someone who has their written authority