Glossary of Terms Flashcards
An estate in land?
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.
An interest in land?
A person with an interest in land has a right against land owned by another person. For example, a right of way.
What are the two types of estates in land and what do they mean?
- freehold: this is the freehold estate which lasts indefinitely. Its full name is ‘fee simple absolute in possession’
- leasehold: this is the leasehold estate which lasts for a fixed period. Its full legal name is ‘term of years absolute’ . It can also be described as a lease or tenancy. A freehold estate owner can grant a lease for any duration. A leasehold estate owner can only grant a sub-lease for a shorter duration than their own lease.
Interests in land
What are the 7 different types of interests in land?
Mortgage
Restrictive covenant
Easement
Profits
Resulting trust
Constructive trust
Estate contract
Option
Mortgage: 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.
Interests in land
What are the different types of interests in land?
Restrictive covenant: a promise by one landowner in favour of another landowner that they will not do certain things on the land. For example, not use the land for any use other than a private home.
Interests in land
What are the different types of interests in land?
Easement: a right for one landowner to make use of another parcel of land for the benefit of their land. For example, a right of way.
Interests in land
What are the different types of interests in land?
Profits or profits a prendre: a right to go on to somebody else’s land and remove from the land something which exists naturally. For example, a right to catch and take fish or a right to graze animals.
Interests in land
What are the different types of interests in land?
Resulting trust: 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.
Interests in land
What are the different types of interests in land?
Constructive trust: 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. This can include contributing to the mortgage payments or making substantial improvements to the property.
Interests in land
What are the different types of interests in land?
Estate contract: a contract to convey or create a legal estate including an option to purchase.
The sale and purchase of land normally has two stages.
The first stage is when the seller and the 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.
The second stage involves the seller transferring the property to the buyer. The sale is completed on the legal estate is transferred to the buyer.
There is usually a short interval between the two stages.
During that interval the buyer owns an estate contract (which is an equitable interest).
Interests in land
What are the different types of interests in land?
Option: 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.
What is a type of statutory right?
Home right: this is a 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.
What is alienation?
The sale or under letting of leasehold land.
Assignment?
The transfer (or sale) of a lease between the tenant/lessee (an assignor) and a purchaser (an assignee).
Beneficial interest
The interest of a beneficiary under the trust (express, resulting or constructive).
Charge
An alternative word for a mortgage also expressed as a charge by way of legal mortgage
Conveyance
A document transferring legal ownership in freehold unregistered land
Dominant land
The land that benefits from a restrictive covenant or easement
Fine
A sum of money paid to the landlord in return for granting a lease. Usually paid in addition to rent. Also known as a premium.
Fixed term lease
May be for any period of time as long as the maximum period is fixed
Lessee/tenant
The owner of the leasehold estate
Lessor/landlord
The person who grants the leasehold estate.
The landlord retains the right to receive rent and sell the freehold (subject to the lease).
The retained rights are known as the reversion.
Mortgagee
This is the lender who owns the mortgage interest in the land
Mortgagor
This is the borrower, the person who owns the legal estate in land and grants the mortgage to the mortgagee (lender) as security for the loan.
Periodic lease
A lease for one period, which extends automatically until either the landlord or tenant give notice to quit. The period is usually a week, month or year.
Personal property
Rights in property except for land (goods and chattels)
Positive covenant
An obligation which requires effort or expenditure in order to perform the obligation
Puisne Mortgage
A legal mortgage over unregistered land which is not protected by the deposit of title deeds
Real property
All property rights relating to land (estates and interest, ie mortgages, easement, etc).
Serving land
The land which is subject to or burdened by the covenant or easement.
The easements are exercised over this land.
The servient land is bound by the restrictive covenant.
Tenancy
This is the leasehold estate which lasts for a fixed period of time.
Its full legal name is ‘ terms of years absolute’.
It is also described as a lease or leasehold.
A freehold estate owner can grant a lease for any duration.
A leasehold estate owner can only grant a sub-lease for a shorter duration than their own lease.
Time immemorial
1189 also known as the date of legal memory
Transfer
A document transferring legal ownership in registered land.
