Chapter 3- Estates And Interest In Land Flashcards
What is an estate?
Land or owning an interest in land (tenure)
What are the two legal estates recognised by law
The fee simple absolute in possession (FREEHOLD)
The term of years absolute (LEASEHOLD)
What section is LPA 1925 are freehold and lease hold recognised under?
s1(1) Law of Property Act 1925
What does fee simple absolute mean?
Land which holds no limitations (can be inherited!)
How must an estate be legal?
It must be created by deed s52 LPA 1925
What is a lease?
An estate that exists for a fixed maximum duration.
What is the S for lease fixed term in LPA?
s205(1)xxvii Law of property Act 1925
Does a lease need to be in possession?
No, it can commence for a date in the future but within 21 years of its creation (
Which s of the LPA confirms a lease must be in possession within 21 years of its creation
s149(3) LPA 1925
Give the exception which a lease can be created without a deed.
A lease taking effect in possession immediately for 3 years or less can be created in writing or orally.
Which s of the LPA confirms the exception to a lease without a deed
s54(2) LPA 1925
Define legal interest
Rights over the land of someone else
How many legal interests are there under s1(2) LPA 1925?
5
What are the 5 legal interests in land?
- Legal easements, and profits
- Rent charges
- Charge by way of legal mortgage
- Certain charges arising under statue
- Rights of entry in legal leaders and legal rent charges
What is legal easement and profits
A right which the owner may have over the owner for profit, I.e fishing or grazing. The rights must be outlined by deed.
What is legal rent charge
The right to collect a periodic payment attached to the land.
No new rent charges are allowed to be made under Rentcharges Act 1977
What is charge by way of legal mortgage
A charge on the property to take possession of of the mortgage is not paid.
What is right of entry in legal leases and legal rent charges?
The landlord reserves the right to retake possession of the tenant foes not comply with obligations.
What is equitable interest?
Any interest which does not qualify under legal estate under s1(1) or s1(2) will be held as equitable under s1(3) LPA 1925
Do you have to be 18 to hold an equitable interest in land?
No, can be held by a person if any age
Example of equitable interest
- Trusts
- Interests which do not comply with required formalities
- Following an exchange of contracts
- The benefit of a restrictive covenant (restricted actions on a property, employer doesn’t want you to go into same business etc)
What s of the act states equitable interest should be made in writing?
s53(1) Law Property Act 1925
Name 2 main categories of rights in land?
- Legal estates and interest
2. Equitable interest
What are legal estates and interest?
Developed by common law and they bind the world (bound by law)
What are equitable interests?
Developed by courts of equity. Not all buyers will be Blount by equitable interest.
What is the CLRA 2002?
Commonhold and leasehold reform Act 2002.
Why was the CLRA 2002 introduced?
To meet needs if owners of flats or apartments.
What is commonhold?
It is an estate in land created out of an absolute freehold.
What is a unit holder in commonhold?
A unit holder is the freehold owner of each individual unit
