Chapter 3- Estates And Interest In Land

Question 1

What is an estate?

Answer 1

Land or owning an interest in land (tenure)

Question 2

What are the two legal estates recognised by law

Answer 2

The fee simple absolute in possession (FREEHOLD)

The term of years absolute (LEASEHOLD)

Question 3

What section is LPA 1925 are freehold and lease hold recognised under?

Answer 3

s1(1) Law of Property Act 1925

Question 4

What does fee simple absolute mean?

Answer 4

Land which holds no limitations (can be inherited!)

Question 5

How must an estate be legal?

Answer 5

It must be created by deed s52 LPA 1925

Question 6

What is a lease?

Answer 6

An estate that exists for a fixed maximum duration.

Question 7

What is the S for lease fixed term in LPA?

Answer 7

s205(1)xxvii Law of property Act 1925

Question 8

Does a lease need to be in possession?

Answer 8

No, it can commence for a date in the future but within 21 years of its creation (

Question 9

Which s of the LPA confirms a lease must be in possession within 21 years of its creation

Answer 9

s149(3) LPA 1925

Question 10

Give the exception which a lease can be created without a deed.

Answer 10

A lease taking effect in possession immediately for 3 years or less can be created in writing or orally.

Question 11

Which s of the LPA confirms the exception to a lease without a deed

Answer 11

s54(2) LPA 1925

Question 12

Define legal interest

Answer 12

Rights over the land of someone else

Question 13

How many legal interests are there under s1(2) LPA 1925?

Answer 13

5

Question 14

What are the 5 legal interests in land?

Answer 14

1. Legal easements, and profits
2. Rent charges
3. Charge by way of legal mortgage
4. Certain charges arising under statue
5. Rights of entry in legal leaders and legal rent charges

Question 15

What is legal easement and profits

Answer 15

A right which the owner may have over the owner for profit, I.e fishing or grazing. The rights must be outlined by deed.

Question 16

What is legal rent charge

Answer 16

The right to collect a periodic payment attached to the land.

No new rent charges are allowed to be made under Rentcharges Act 1977

Question 17

What is charge by way of legal mortgage

Answer 17

A charge on the property to take possession of of the mortgage is not paid.

Question 18

What is right of entry in legal leases and legal rent charges?

Answer 18

The landlord reserves the right to retake possession of the tenant foes not comply with obligations.

Question 19

What is equitable interest?

Answer 19

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

Question 20

Do you have to be 18 to hold an equitable interest in land?

Answer 20

No, can be held by a person if any age

Question 21

Example of equitable interest

Answer 21

1. Trusts
2. Interests which do not comply with required formalities
3. Following an exchange of contracts
4. The benefit of a restrictive covenant (restricted actions on a property, employer doesn’t want you to go into same business etc)

Question 22

What s of the act states equitable interest should be made in writing?

Answer 22

s53(1) Law Property Act 1925

Question 23

Name 2 main categories of rights in land?

Answer 23

1. Legal estates and interest

2. Equitable interest

Question 24

What are legal estates and interest?

Answer 24

Developed by common law and they bind the world (bound by law)

Question 25

What are equitable interests?

Answer 25

Developed by courts of equity. Not all buyers will be Blount by equitable interest.

Question 26

What is the CLRA 2002?

Answer 26

Commonhold and leasehold reform Act 2002.

Question 27

Why was the CLRA 2002 introduced?

Answer 27

To meet needs if owners of flats or apartments.

Question 28

What is commonhold?

Answer 28

It is an estate in land created out of an absolute freehold.

Question 29

What is a unit holder in commonhold?

Answer 29

A unit holder is the freehold owner of each individual unit