Glossary

Question 1

An estate in land

Answer 1

A person with an estate in land has the right to enjoy, possess, control and dispose of it and receive any income produced from the land

Question 2

An interest in land

Answer 2

A person with an interest in land has a right against land owned by another person.
E.g. A right of way

Question 3

Estates in land:
Freehold
Leasehold

Answer 3

Freehold: freehold estate, lasts indefinitely
Leasehold: lasts for a fixed period

Question 4

Interests in land

Answer 4

Mortgage
Restrictive covenant
Easement
Profits
Resulting trust
Constructive trust
Estate contract
Option

Question 5

Mortgage

Answer 5

An interest over land granted by the borrower to the lender as security for a loan

If the borrower fails to repay the loan, the lender can enforce its security

Question 6

Restrictive covenant

Answer 6

A promise by one landowner in favour of another landowner that they will not do certain things on the land
E.g. Not use the land for any use other than a private home

Question 7

Easement

Answer 7

A right for one landowner to make use of another parcel of land for the benefit of their own land
E.g. A right of way

Question 8

Profits

Answer 8

A right to go on to somebody else’s land and remove from the land something which exists naturally
E.g. A right to catch and take fish or a right to graze animals

Question 9

Resulting trust

Answer 9

A person, who is not the legal owner, contributes directly to the purchase price of the property

The person acquires an interest proportionate to their contribution

Question 10

Constructive trust

Answer 10

An interest in land is created when a person, who is not the legal owner of the property, makes a contribution to the property other than a direct financial contribution at the time of the purchase

E.g. Contributing to the mortgage payments or making substantial improvements to the property

Question 11

Estate contract

Answer 11

The sale and purchase of land normally has two stages

1. When the seller and buyer enter into a contract in which it is agreed that the estate in land should be sold. Contracts are exchanged and the buyer holds an equitable interest
2. Seller transferring property to buyer. The sale is completed and the legal estate is transferred to the buyer.

There us usually a short interval between the two stages. During the interval the buyer owns an estate contract - an equitable interest

Question 12

Option

Answer 12

An option enables the owner of the option to insist that the land is sold to them at any time during the fixed period of the option - the period must not exceed 21 years

An option fee is usually payable, but the full purchase price only becomes payable if the option is exercised

Question 13

Statutory rights: Home right

Answer 13

Statutory right for a non-owning spouse or civil partner to occupy the matrimonial home under the Family Law Act 1996

It does not create an interest in land

Question 14

Alienation

Answer 14

The sale or underletting of leasehold land

Question 15

Assignment

Answer 15

The transfer (or sale) of a lease between the tenant/lessee (an assignor) and a purchased (an assignee)

Question 16

Beneficial interest

Answer 16

The interest of a beneficiary under the trust (express, resulting or constructive)

Question 17

Charge

Answer 17

An alternative word for a mortgage also expressed as a charge by way of legal mortgage

Question 18

Conveyance

Answer 18

A document, transferring legal ownership in freehold unregistered land

Question 19

Dominant land