Land Flashcards

1
Q

What are corporeal hereditaments?

A

Tangible things like buildings / trees plants/ fixtures

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2
Q

What are incorporeal hereditaments?

A

Rights

Easements

Rents

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3
Q

What rights does the landowner have in the airspace above his land?

A

The landowner is allowed rights in the airspace only to such height as is necessary for the ordinary use and enjoyment of the land

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4
Q

What rights does a landowner have over the land?

A

He does not have the right to all minerals under his land. The Crown is entitled to gold, silver and treasure under the land

The landowner does not own wild animals on the land, but they do have a right to hunt them

The landowner can draw water from a source running through the land only if they obtain a licence

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5
Q

In what form will the seller include all of the items that will be included in the sale?

A

The Fittings and Contents Form

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6
Q

What two tests will the Court apply when determining whether an object has become a fixture (rather than fitting)?

A
  • Degree of annexation test - see if removal of the thing will cause damage to the remaining structure - like if screwed or bolted. if standing on the land under its own weight (like a statue) then more likely to be a fitting
  • Purpose of annexation test - was it brought onto the land with intent to make a permanent improvement?
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7
Q

What is a commonhold?

A

It is essentially a leasehold scheme in which a management company covenants to comply with maintenance obligations and provide services.

The land is registered as commonhold land and the owner of each unit will be a member of a Commonhold Association. The Association will be a company limited by guarantee with the company registered as the freehold owner of the common parts and the members of the company registered as freehold owners of the individual units.

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8
Q

What are the five legal interests in land?

A
Mortgages
Easements
Rentcharges - (in case of default the rentcharge owner can take possession of the land - can be used to enforce a positive covenant)
Rights of Entry
Profits à prendre
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9
Q

What is a profit à prendre in gross?

A

A profit which is exercised for the benefit of a particular person. It can be bought and sold independently of the land and can be registered at HMLR with its own title

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10
Q

What is a profit à prendre appurtenant?

A

This is a profit in which the right is attached (appartient à) to the land. it CANNOT be registered at HMLR with its own title.

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11
Q

Which can be registered at HMLR with its own title - a profit a prendre in Gross or Appurtenant?

A

A profit à prendre in gross can be registered with its own title

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12
Q

Unregistered land: What are the binding rules for legal/ equitable interests?

A

Legal interests bind all third parties

Equitable interests will not bind a bona fide purchaser for value who did not have notice of the interest

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13
Q

What is an estate contract?

A

A person has an equitable interest in the land from the date of the contract for sale (or an option to purchase). This can be protected as an estate contract on land charges register/ register of title

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14
Q

What are the formalities for a contract for the sale of land?

A

It must be in signed writing

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15
Q

What are the formalities for the creation of a deed?

A

In writing
Intended as a deed
Executed as a deed

Must be signed by a witness who attested the signees signature and then delivered

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16
Q

When will a deed not be required?

A
  • An assent made by a PR
  • Certain leases, tenancies and other assurances
  • Surrenders of a lease by operation of law
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17
Q

UNREGISTERED LAND:

What must be shown for there to be a good root of title?

A
  • An unbroken chain of ownership of the land for at least 15 years
  • It must deal with the whole legal and equitable interest in the property
  • Contain an adequate description of the property
  • Do nothing to cast double on the title
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18
Q

UNREGISTERED LAND: What is an epitome of title?

A

A chronological list of the documents with a copy of each document attached to the epitome. Once the sale proceeds have been received, the seller will send the original title deeds to the buyer

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19
Q

UNREGISTERED LAND: Who bears the burden of investigating title and when is this done?

A

It is the buyer’s solicitors responsibility, and it is done prior to the exchange of contracts

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20
Q

UNREGISTERED LAND: What are queries about the title to the land known as?

A

They are known as ‘requisitions’

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21
Q

UNREGISTERED LAND: When does title to unregistered land pass?

A

On completion

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22
Q

UNREGISTERED LAND: How long does the buyer have to register title following completion?

A

Two months

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23
Q

UNREGISTERED LAND: Are legal interests binding on all third parties?

A

Yes, legal interests are binding on all third parties irrespective of notice.

E.g. if there is a valid deed of easement in an epitome of title, this will be binding, even if the buyer’s solicitor did not investigate the title

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24
Q

UNREGISTERED LAND: Are equitable interests binding on all third parties?

A

No, they will only be binding if there was notice of them. This means they must be protected by registration on the land charges register

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25
Q

What does a C(i) land charge represent?

A

A puisne mortgage (i.e. a second legal charge)

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26
Q

What does a C(iv) land charge represent?

A

An estate contract

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27
Q

What does a D(ii) land charge represent?

A

A restrictive covenant

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28
Q

What does a D(iii) land charge represent?

A

An Equitable easement

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29
Q

What is a Class F Land Charge?

A

This protects a non-owning spouse or civil partners right to occupation of the matrimonial home under the Family Law Act 1996

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30
Q

UNREGISTERED LAND: Is the interest registered against the land or the estate owner’s name?

A

It is registered against the estate owners name. It is therefore very important to have the correct name

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31
Q

UNREGISTERED LAND: Who will be bound by an equitable interest which was not registered?

A

Anyone who is not a ‘bona fide purchaser for value without notice’

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32
Q

UNREGISTERED LAND: What is constructive/ imputed notice

A

Constructive notice is notice of something that could have been discovered on a reasonable inspection. Imputed notice is notice given to an agent of the buyer - it will be imputed to the buyer.

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33
Q

UNREGISTERED LAND: When do unregistered interests which override first registration take effect?

A

When the land is first registered under the LRA 2002. They will become automatically binding on the land when the land is registered.

The buyer will inform the HMLR of this interest and it will then be protected by an entry on the register and will cease to be overriding.

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34
Q

UNREGISTERED LAND: Which interests are those which override first registration?

A
  • A lease granted for seven years or less
  • A legal easement
  • A local land charge
  • An interest belonging to a person in actual occupation
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35
Q

What will the buyer’s solicitor do in order to protect the buyer from an overriding interest of a person in actual occupation?

A

They will check the Property Information Form, and advise their client to physically inspect the property

If there is a non-owning occupier, the buyer’s solicitor will require them to sign the seller’s part of the contract as confirmation that they will vacate the property on completion.

36
Q

UNREGISTERED LAND: What are the rules regarding adverse possession?

A

The applicant will have to show that:

  • They have actual physical possession of the land
  • Possession is exclusive to them
  • The possession is without the permission of the landowner
  • Possession has lasted for at least 12 years

HMLR are likely to award possessory title (which can then be upgraded after 12 years)

37
Q

What is the date after which all land must be registered following the occurrence of a triggering event?

A

1 December 1990

38
Q

What are the triggering events that must lead to first registration?

A
  • Grant of a first legal mortgage
  • A conveyance on sale of freehold land
  • An assent
  • A deed of gift
  • A grant of a lease for a period of 7 years or more
  • An assignment of a lease for a period of 7 years or more

After a triggering event, an application for first registration must be made within TWO MONTHS

39
Q

What happens if a buyer fails to register the title within the two month deadline?

A

The transfer of the legal estate is void and reverts to the seller

40
Q

What happens if a lease or mortgage is not registered within the two month period?

A

The legal estate reverts to the original transferor who then holds it on trust for the beneficiary

41
Q

Who bares the cost of failing to register title to the land following a triggering event?

A

The party in default. They will also have to indemnify the other party in respect of any liability incurred from the failure to register.

In most cases, it will be the buyer who is responsible for effecting registration.

42
Q

Does the registrar have the power to extend the 2-month period for registration?

A

Yes - if satisfied that there is a good reason to do so.

43
Q

What is the implication of having an unregistered transfer /lease?

A

It will take effect as an equitable estate and will lose priority against other registered interests

44
Q

What are the classes of title and their implications?

A

Absolute Freehold Title - best class of title. The registered estate is only subject to interests on the register and overriding interests

Qualified title - Where there is a specific interest that cannot be registered (very rare)

Possessory title - based on factual possession of the land rather than documentary evidence i.e. adverse possession or when the title deeds have been lost

Good leasehold title - this class of title means that the freehold title has not been produced to HMLR on application to register the lease

Absolute leasehold title - where all superior leasehold titles and the freehold title have been inspected

45
Q

After what period of time may possessory title be upgraded to absolute freehold title if not challenged?

A

After 12 years

46
Q

Which rights in land can be registered with their own title number and register?

A
  • Freehold and leasehold estates (leasehold 7+ years)
  • Rentcharges
  • Franchises
  • Profits à prendre in gross
47
Q

What is a caution against first registration?

A

When a person with an interest in unregistered land registers a caution so that they are warned that first registration will take place and can register a notice to protect their interest

It must be made with reasonable cause

The owner of the estate can apply to the Registrar for the caution to be cancelled and the cautioner will be given the opportunity to object (15 days)

48
Q

Which dispositions do not operate unless registered?

A
  • Transfer of a freehold estate
  • Grant of a legal lease for more than 7 years
  • Legal easements
  • A first legal mortgage
49
Q

REGISTERED LAND: When does title to the land pass?

A

On registration

50
Q

REGISTERED LAND: What is an agreed notice?

A

One that relates to an interest which has been agreed by the landowner

51
Q

REGISTERED LAND: What is a unilateral notice?

A

Once which is registered without the consent of the registered proprietor. The registered owner can then apply to have it cancelled

52
Q

REGISTERED LAND: When is.a restriction used?

A

Normally it is used to protect a beneficial interest in property, i.e. where property is owned as tenants in common

53
Q

What is a Form A Restriction and where does it appear?

A

A restriction which sets out the beneficial interests in the property. It appears on the Proprietorship register.

54
Q

REGISTERED LAND: What are the overriding interests?

A
  • Legal leases for 7 years or less
  • Legal Easements (i.e. not ones made by deed but implied / prescription. These must be known to the buyer or obvious on a reasonable inspection of the land)
  • Profits à prendre
  • Interests of persons in actual occupation
55
Q

REGISTERED LAND: When will the interests of a person in actual occupation not be binding?

A
  • If a buyer made an enquiry of an occupier and they failed to disclose their occupation
  • If the occupation was not obvious on a reasonable inspection
  • If the person claiming the right does not have a property right in the land (they must have a proprietary right in order to claim an overriding interest)
56
Q

REGISTERED LAND: Is the right of occupation of a non-owning spouse an overriding interest?

A

No - this interest needs to be registered as a home rights notice on the charges register

57
Q

REGISTERED LAND: What are the rules for adverse possession?

A
  • Actual physical possession of the land
  • The possession is exclusive to them
  • The possession of the land is without the permission of the landowner
  • For a period of ten years
  • This just gives the squatter the right to apply for registration of title and the registered proprietor will then be given the opportunity to object and this will normally always be granted
58
Q

If both parties contributed to the purchase price but there is only one legal owner, what will the court likely infer?

A

A resulting trust with the legal owner holding on trust for themselves and their partner

59
Q

There is a limit of a maximum of four trustees to hold the legal estate, but is there a maximum number of people who may hold a beneficial interest?

A

No

60
Q

What are the methods of severing a joint tenancy into a tenancy in common?

A
  • Severance by written notice from one joint tenant
  • Severance by treating share as separate or by disposing of an equitable interest (e.g. by contracting to sell it)
  • Severance by mutual agreement
  • Severance by a course of dealings between the parties (e.g. an oral agreement to buy eachother’s shares)
  • Severance by forfeiture (murdering another joint tenant)
  • Severance by bankruptcy (if one tenant is bankrupt this severs their share)
61
Q

What is required for overreaching to occur?

A

Payment of the purchase price to two or more trustees (if no second trustee then the buyer will normally have the person in occupation sign the contract to ensure they will leave the property)

62
Q

How are disagreements between co-owners solved?

A

s.14 TOLATA - allows a co-owner to apply to the court for an order to sell or not to sell / relieve the trustee of a duty to obtain the beneficiaries consent / or to force them to consult with beneficiaries regarding the exercise of their functions / declare the nature of a person’s interest in a property

63
Q

Under s.15 TOLATA, what is the list of factors which the court will consider when determining an action under s.14?

A
  • The intentions of those who created the trust
  • The purpose for which the property is held
  • The welfare of any minor occupying the home
  • The interests of any secured creditor or beneficiary
64
Q

What is an easement created by express grant or reservation?

A

Where a landowner is selling a piece of their land and includes in a deed or transfer:

  • A grant of rights to the land being sold or
  • Reserves rights for the land which they are retaining
65
Q

What is an easement granted by statute?

A

s.62 LPA 1925 - states that easements and profits appurtenant connected to the land pass even if they are not specifically mentioned in the transfer document,

This only applies to grant rights and not to the reservation of rights

It will not apply if there is a contrary intention in the conveyance

66
Q

What are easements by implied grant or reservation?

A
  • An easement by necessity (e.g. where the land is landlocked and an easement is required to make the situation work)
  • An easement intended to give effect to both parties intentions
  • Ancillary easement (an easement required to make some other right - e.g.a right to take water from the land) work
  • Easements implied by existing use (those which are continuous and apparent and necessary to the reasonable enjoyment of the land)
67
Q

Does the law allow a seller to reserve an easement by implication, or does it have to be express?

A

Reservations must be express, unless they are an easement of necessity or intention (narrow in scope).

68
Q

When will an easement be an overriding interest?

A

Implied legal easements - e.g by necessity or by prescription (expressly created easements must be registered and are not overriding)

AND must be:

  • Known to the buyer OR
  • Obvious on a resonable inspection OR
  • Have been used in the last year
69
Q

Who is the covenantee and the covenantor?

A

Covenantor - the person promising to do something

Covenantee - the one that has the benefit of the promise

70
Q

When will the benefit of a restrictive covenant be enforceable by the seller’s successors in title (i.e when the person who inherits the land benefitting from the promise be able to enforce it)?

A
  • The covenant touches and concerns the land (must not be merely a personal right)
  • The covenant was intended to run with the land
  • The covenantee held the legal estate to the land and the successor now holds the freehold estate (not enforceable by a tenant)
71
Q

When will the burden of restrictive covenant be enforceable (i.e. when will a person who purchases burdened land be able to have the burden covenant enforced against them?)

A

At common law - it cannot be enforced

In equity - it can only be enforced if:

  • It is negative in nature
  • The original covenantee owned the land when the covenant was entered into
  • The burden of the covenant was intended to run with the land
  • The covenant must appear on the charges register or if unregistered, as a D(ii) land charge
72
Q

What is the most common method of enforcing a positive covenant and how does it work?

A

A chain of indemnity

The burden of a positive covenant will still be enforceable against the original covenantor (i.e. person who originally owned the burdened land) and so the person selling the burdened land can require incoming buyers to promise to comply with the covenant and indemnify them if they do not.

73
Q

What other methods are there to enforce a positive covenant?

A

A rentcharge made subject to the performance of a positive obligation

The benefit and burden rule: if the burden of upkeep also provides a benefit to the person who must do the positive act, then person can be told that they will not get the benefit if they do not accept the burden

74
Q

What is a mortgage by demise?

A

A mortgage by grant of a long lease

75
Q

If a mortgagor holds only an equitable interest, will they only have an equitable mortgage?

A

Yes

76
Q

How is a second legal mortgage protected in unregistered land?

A

C(i) puisne mortgage

77
Q

How is an equitable mortgage protected in unregistered land?

A

C(iii) land charge

78
Q

UNREGISTERED LAND: When will a lease bind a mortgagee

A

Legal lease: binding irrespective of notice

Equitable lease: binding if registered as a C(iv) estate contract

79
Q

REGISTERED LAND: Will a lease bind a mortgagee

A

Bound by anything on the register prior to the mortgage or if someone is in actual occupation (as an overriding interest)

80
Q

When will a mortgage over a property for a purpose other than buying the land (i.e. for the husband’s business) bind a co-owner?

A

If they are separately represented by another solicitor AND

Receive full financial information

The mortgagee must take reasonable steps to satisfy itself that the practical implications of the proposed transactions have been understood by the co-owner.

81
Q

What are the mortgagees remedies and when will they arise?

A
  • Sue for the debt (though this has little practical use if the mortgagor has no money)
  • Take possession (can happen at any time but court order required if the land includes a dwelling)
  • Foreclosure (court order transferring legal estate from the borrower to the lender who becomes the registered owner)
  • Sale
  • Appointment of a receiver (more common in Commercial contexts)
82
Q

When does the power of sale arise and is a court order necessary?

A

No a court order is not necessary, as long as the contractual date set to redeem the mortgage has passed (normally 6 months after creation of the mortgage)

Power of sale is exercisable only when:

  • Interest payments are more than 2 months in arrears
  • There has been a written request for repayment of the capital and 3 months have passed without payment
  • There is a breach of some other term of the mortgage
83
Q

What is the priority order of mortgages in registered land?

A
  • Legal mortgages have priority over later legal mortgages

- Equitable mortgages registered as a charge have priority over later legal and equitable mortgages

84
Q

What is the priority order for mortgages in unregistered land?

A

Legal mortgage protected by deposit of the title deeds has priority over all other mortgages.

All other mortgages have priority in order of the time they were created

85
Q

If a subsequent mortgagee decides to exercise the power of sale, do they have to pay off prior mortgages first?

A

Yes, and if there is no surplus they will not get any money

86
Q

Can priority of mortgages be changed?

A

Yes, by a postponement, which needs to be registered