Land I Estates and Third Party Interests in Land

Question 1

Define and distinguish Choses in possession and Choses in Action

Answer 1

Choses in possession and Choses in Action are the only two kinds of personal property (Chattels Personal)

Choses in possession are physical, movable things

Choses in action are rights that do not have a physical existence such as debts and patents

Question 2

Define and distinguish corporeal hereditaments and incorporeal hereditaments

Answer 2

They both related to real property of ‘Land’ for the purpose of Law of Property Act 1925

Corporeal hereditament are tangible land, including the surface of the land, buildings, mines and minerals, air and ground, fixtures

Incorporeal hereditaments are intangible:

Rights, Easements and Rents

Question 3

Limitation on airspace on land

Answer 3

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

Question 4

Limitation on things in the ground

Answer 4

Freehold owner is not entitled to all minerals under the land. The ownership of coal, oil and natural gas is laid down by statute. Moreover, the Crown is entitled to any gold, silver and treasure found under the land.

Question 5

The importance of distinguishing fixture and fittings (chattels)

Answer 5

Because on a sale of land, a seller can remove the fittings when they leave. The fixtures must remain as they form part of the land.

Question 6

Test for determining if an object is a fixture/chattel

Answer 6

2 tests: degree and purpose of annexation

The degree of annexation test provides that the greater the degree of attachment to the land, the more likely the item to be a fixture (built-in white goods). or something is standing on the land under its own weight but very different to move (greenhouse or statue)

Purpose test: was the item brought onto the land for permanent or temporary improvement? this test overrides the degree test.

D’Eyncourt: if forms part of the architectural design of garden/house - a fixture

Leigh - if annexation is the only way object can serve its function - a fixture

Question 7

Meaning of estates

Answer 7

Technically the crown owns all lands. Individuals can only hold estates in their land derived ultimately from the Crown.

Whilst you own an estate in land you have the right to enjoy or possess that land, or to receive any rents or profits produced from that land

Question 8

The only two legal estates recognised by Law of Property Act 1925

Answer 8

fee simple absolute in possession

terms of years absolute

Question 9

Meaning of a covenant

Answer 9

Covenant is a contract made in deed that relates to land

Question 10

Meaning fee simple absolute in possession

Answer 10

fee: inheritable
simple: can be inherited by anyone
absolute: forever
in possession: immediate and present enjoyment

Question 11

List 5 legal interests ‘MERRP’

Answer 11

a) Mortgages - a loan secured on a property
b) Easements - a right which exists over a piece of land which benefits a different piece of land
c) Rentcharges: an interest in land requiring the landowner to make a periodic payment in respect of land to the rentcharge owner (former owner of the land) A rentcharge cannot be a tenancy or lease. it is used to enforce a positive covenant and is rare. Estate rentcharge is a management fee for a freehold estate.
d) Rights of Entry
e) Profits a Prendre:

Profit a Prendre in Gross - a profit can exist independently of land (not to attached to any land)
Profit a Prendre Appurtenant - a profit is attached to a particular piece of land in the same way as an easement.

Question 12

List 4 equitable interests ‘MERP’

Answer 12

Equitable Mortgages:
A legal mortgage must be created deed (s.52(1)LPA 1925) Equitable Mortgage exists if the mortgage is not secured by a deed

Estate Contracts
Where a person enters into an agreement to buy land, the person is deemed to have an equitable interest in that land from the date of the contract

Restrictive Covenants:
A covenant that is negative in nature, it may be possible for the covenant to be enforced against a later owner of the burdened land

Positive Covenants:
A covenant that is positive in nature. A positive covenant may not be enforceable against successors in title.

Question 13

Formalities for a valid contract for the sale of land

Answer 13

General requirement for a formation of a contract:
offer and acceptance
consideration
intention to form legal relation
parties with legal capacity

The contract must
be in writing and include all the terms agreed
signed by the contracting party or representative

(s.2 Law of Property (Miscellaneous Provisions) Act 1989 - a contract that does not meet these requirements is unenforceable)

Question 14

Formalities for a deed to be valid in relation to land

Answer 14

The document must be

In writing;

Clearly intended to be a deed;

Duly executed as a deed;

must be on the face of the document that it is intended to be a deed by the party or parties to it

signed, witnessed and delivered (delivered means the parties have expressed an intention to be bound by the deed)

Question 15

Exceptions to the requirement for a deed

4

Answer 15

A deed is not needed to validly transfer property as to the following:

Assents by personal representatives

Disclaimers made under the Insolvency Act 1986, or not required to be evidenced in writing

Surrenders by operation of law (implied surrenders such as when a landlord and tenant demonstrate by their conduct that there is no longer a continuing lease between them)

Leases, tenancies, or other assurances not required by law to be made in writing

Question 16

Are white goods chattels or fixtures

Are Bungalow and garden shed/greenhouse chattels or fixtures?

Answer 16

White goods, carpets and curtains are usually chattels (Botham v TSB Bank Plc)

Bungalow and garden shed/greenhouse are chattels provided that they can be easily dismantled and transferred around garden (Elitestone Ltd v Morris and another)