Estates & TPIs: TPIs and Interests Over Land Flashcards
Can owners create rights over their land for others?
Yes, owners can create rights over their land in favor of others, known as third-party interests, that fall short of full ownership.
What types of third-party interests exist in land?
Third-party interests may be
1. legal,
2. equitable, or
3. arise under statute.
What are examples of legal third-party interests according to s 1(2) of the Law of Property Act 1925?
Easements and legal mortgages are crucial examples of legal third-party interests under s 1(2) of the Law of Property Act 1925.
What is an easement?
An easement is a right attached to land that imposes a burden on another piece of land, like a right of way, and can be legal if it’s equivalent to an estate in fee simple absolute in possession or a term of years absolute.
How do equitable interests arise?
Equitable interests can arise
1. from trusts (beneficiaries under a trust) or
2. from land transactions without trusts, such as restrictive covenants and estate contracts
What is a restrictive covenant?
A restrictive covenant is a promise not to use land in a particular way, often created upon the sale of part of the land, and is recognised as an equitable interest.
What is an estate contract and how does it relate to equitable interests?
An estate contract, such as a contract to buy land, grants the buyer an immediate equitable interest in the land, treating the contract as specifically enforced by equity.
Can third-party rights arise from statutes?
Yes, certain third-party rights, such as home rights under the Family Law Act 1996 and rights for civil partners under the Civil Partnership Act 2004, arise from statutory provisions.
What are home rights under s 30 of the Family Law Act 1996?
Home rights are rights given to the non-owning spouse to occupy the matrimonial home, extending to legally married couples and same-sex couples registered under the Civil Partnership Act 2004, independent of any equitable interests arising under a trust
How do you determine if an estate or interest in land is legal or equitable?
Begin by consulting s 1(1) and (2) of the Law of Property Act 1925. If the estate or interest is listed there, it has the potential to be a legal estate or interest.
However, this does not guarantee its legal status, as specific formalities must be met to create a legal estate or interest.
Easements and charges by way of legal mortgage are common examples that can be legal interests if granted for a duration equivalent to a fee simple absolute in possession or a term of years absolute, assuming all formalities are observed.
What is a licence in the context of land use?
A licence is a permission granted by a landowner (licensor) to a person (licensee) to use the land in a way that would otherwise be unauthorized.
It does not create a proprietary interest in the land.
What is a bare licence?
A bare licence is granted without consideration, allowing the licensee to perform specific actions on the licensor’s land.
It can be revoked at any time since it does not confer any proprietary rights.
What is a contractual licence?
A contractual licence is supported by consideration and is part of a contractual agreement.
It provides more protection against revocation than a bare licence, potentially leading to damages for breach or an injunction in equity if wrongfully revoked.
What are some common examples of situations where a person has only a licence to be on someone’s land?
Examples include staying at a hotel overnight, taking up lodgings, going to a pub, cinema, or entering a shop.
These scenarios grant temporary access or occupation without proprietary rights.
What are the consequences of revoking a contractual licence?
Revocation of a contractual licence may lead to common law damages for breach of contract. In some situations, equity may also provide an injunction to prevent wrongful revocation.
