Land Law Flashcards

1
Q

What is an easement? What is the difference with a profit?

A

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

On the other hand, a profit is a right to go on somebody else’s land and remove from the land something which exists naturally, e.g. a right to catch fish.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Can a easement be legal? And how?

A

Easements are capable of being legal if they meet the requirements of s1(2)(a) LPA.

In order to be capable of being legal, the right must be granted for the equivalent of either:
- an estate in fee simple absolute in possession (freehold), ie. forever; or
- a term of years absolute (leasehold).

An easement for uncertain duration cannot be legal.

A deed is required to create a legal easement. However, legal easements can be created without the formality of a deed.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What does an easement need to exist?

A

An identifiable dominant and servient tenement.

An easement cannot exist in gross. This is because one it is created it is included in the definition of the land.

The right must be connected with the normal enjoyment of the dominant tenement. This is a question of fact.

The two tenements do not need to adjoin but they should be close enough to establish a connection between the two.

The dominant and servient tenements must not be both owned and occupied by the same person.

The easement must be capable of forming the subject matter of a grant:
- capable of reasonably exact definition;
- not involve any expenditure by the servient owner;
- not be so extensive as to amount to a claim to joint possession of the servient tenement; and
- the law is very cautious when it comes to a claim for a new type of negative easement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

When can an easement of light exist?

A

Only where it is sufficiently definite and the light is enjoyed via a defined aperture, e.g. a window. The person claiming the right to light must demonstrate an infringement as follows:

The light reaching the windows [of the dominant building] must be sufficient according to the usual notions of mankind for the comfortable enjoyment of the building, bearing in mind the type of building and its locality.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Can a right to a view be an easement?

A

No - the law does not give an action for such things of delight.

Communal garden was accepted as easement - right to use land for recreational purposes. Supreme Court held easements could exist in relation to a golf course, swimming pool or tennis court.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the difference between a negative or positive easement?

A

A positive easement is one where the benefit of the easement is enjoyed by occupants of the dominant land performing some activity, e.g. a right of way, a right of drainage.

A negative easement is where the right exercised by the dominant owner prevents the servient owner from doing something on their land. The only negative easements recognised at law are those of light, air and support.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the 6 ways by which an easement can be created?

A
  • Express grant/reservation
  • Implied by necessity
  • Implied by common intention
  • The rule in Wheeldon v Burrows
  • Section 62 LPA 1925
  • Prescription
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is an express grant/reservation?

A

Express grant is where the servient owner executes a deed granting the dominant owner an easement over the land owned by the servient owner.

An express reservation is where the seller reserves/retains rights over the land they are selling.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

How is an easement implied by necessity?

A

Applies to grants and reservations.

Circumstances are extremely limited. An easement of necessity would arise on the sale of a land-locked parcel of land.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

How is an easement implied by common intention?

A

Applies to grants and reservations.

Where land is conveyed for a purpose known to the grantor, any easement over land retained by the grantor which is essential in order for that purpose to be carried out is implied into the grant in favour of the grantee.

Look for a common purpose known to the parties - the right claimed is needed in order for the common purpose to be fulfilled.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What was the rule from Wheeldon v Burrows?

A

Only applies to grant of an easement, not a reservation. No application to profits.

The effect of the rule is to convert ‘quasi-easements’ into easements. The occurs when a land owner sells part of their land. Any quasi-easements exercised by the landowner will pass to the buyer subject to certain conditions being satisfied:

  • the existence of a quasi-easement prior to the sale;
  • the right must be continuous and apparent;
  • the right must be necessary to the reasonable enjoyment of the land sold; and
  • the right must be in use at the time of the sale.

What’s a quasi-easement? Rights exercised by a land owner over their own land. Has the characteristics of an easement but no diversity of ownership.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What does s62 LPA say regarding creation of easements?

A

It has the effect that on a conveyance of land, if nothing to the contrary is stated in the deed, the conveyance is deemed to pass to the buyer not just the buildings and fixtures but all liberties, privileges, easements, rights and advantages whatsoever appertaining or reputed to appertain to the land or any part thereof or at the time of the conveyance enjoyed with the land.

All existing rights pass automatically to the buyer, without the necessity of formal words in the conveyance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What are the conditions for the operation of s62 LPA?

A
  1. There must be a conveyance which requires an instrument.
  2. There must be some diversity of occupation of the two parts of the land at the time of the grant. This does not apply to easements of light or where the rights were continuous and apparent. Thus, where there is diversity of occupation, no requirements for the rights to be continuous and apparent.
  3. There must be an existing privilege at the date of the conveyance. Section 62 is not concerned with future rights.
  4. The right must be capable of being an easement or profit.

Look for an existing licence/permission and a subsequent conveyance. There must be diversity of occupation - if not, continuous and apparent right.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

How is an easement created by prescription?

A

Where the dominant owner can show use of the right for 20 years, the court will uphold the legal right by presuming that it had a lawful origin.

There are three types of prescription:
a) at common law
b) the doctrine of lost modern grant
c) the Prescription Act 1832.

Whichever method used, the right must have been exercised continuously and as a right (ie. without force, secrecy or permission).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How do you rebut the presumption of creation of an easement by prescription at common law?

A

If you can show that at some time since 1189:
- the right was not exercised
- the right could not have been exercised
- the dominant and servient tenement were vested in the same owner (unity of seisin).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

How does the Prescription Act create an easement?

A

If the dominant owner can show user as of right for 20 years then they will obtain a prescriptive easement even though the user clearly commenced sometime after 1189.

Look for a right that has been exercised for 20 years (30 years for profits) or more as between two distinct parcels of freehold land.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Can a covenant be legal?

A

No - they are equitable in nature.

Therefore, the relevant formality is in writing and signed. Can be either by contract or deed (more common).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What determines whether a covenant is positive or negative?

A

The substance - not the wording.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

How can it be implied into a covenant that the covenantor has covenanted on behalf of themselves and their successors in title?

A

By s79 LPA 1925.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Can the burden of a covenant pass at common law?

A

No. It is based in contract law - only the benefit can be assigned, never the burden.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Can the burden of a covenant pass in equity?

A

Yes - the burden of a restrictive covenant may pass in equity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are ways of enforcing a positive covenant?

A
  • Create a lease
    (both restrictive and positive covenants are binding on a successor in title to a tenant)
  • Indemnity covenant
  • The doctrine of mutual benefit and burden
    (A person who wishes to take advantage of a service/facility which benefits their land must also comply with any corresponding obligation).
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What are the pre-conditions to the doctrine of mutual benefit and burden regarding the enforcement of positive covenants?

A

i) the burden must be ‘relevant to the exercise of rights which enable the benefit to be obtained’

ii) the covenantor’s successors in title must have the opportunity whether to take the benefit or renounce it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What are the rules regarding annexation re the benefit running of a covenant at common law?

A

This is regarding enforcing a covenant in contract.

a) the covenant must touch and concern the land

b) there must have been an intention that the benefit should run with the estate owned by the covenantee

c) the covenantee must have a legal estate in the benefitted land

d) the buyer of the benefitted land must also take a legal title in the benefitted land

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Can the benefit of a covenant be passed to a successor under common law? How?

A

Yes - by express assignment. It must be in writing and signed by the assignor and the written notice of the assignment must be given to the person with the burden.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What does annexation mean in the context of covenants?

A

The permanent attachment of the covenant to the dominant land.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

How can the benefit of a covenant run in equity through annexation?

A
  1. Express annexation (covenant must express an intention to benefit a defined piece of land)
  2. Implied annexation (where annexation was obviously intended and would be unjust to ignore the intention)
  3. Statutory annexation (s78 LPA 1925)
    - covenant must have been created post-LPA
    - covenant must touch and concern the land (identifiable land)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

How can the benefit of a covenant run in equity through assignment?

A

Express assignment (same conditions as running in common law).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

If positive covenants cannot pass in equity or at common law, how does the original covenantor remain bound?

A

By privity of contract.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

What are the remedies available for breach of positive covenant?

A
  • Damages are most common (monetary solution and may include a sum for future loss).
  • Specific performance available against original covenantor (but not successors) but chances are they do not have control over the land.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

What are the remedies for breach of a restrictive covenant?

A

Only runs in equity so the principle remedy is an injunction. There is no automatic right to an injunction.

Damages will be awarded instead of an injunction where:
- the injury to the claimant’s rights are small
- and capable of being estimated in money
- and can be adequately compensated by money and
- it would be oppressive to the respondent to grant an injunction.

32
Q

How can a freehold covenant be removed/limited?

A
  1. Express release
  2. Common ownership (unity of seisin)
  3. s84 LPA 1925 (restrictive only)
  4. Insurance (restrictive only)
33
Q

Are mortgages capable of being legal?

A

Yes.

34
Q

What are the formalities required for a mortgage?

A

A deed is required to create a legal mortgage in relation to a legal estate.

As a mortgage is capable of being a legal interest, where the document lacks the requirements of a deed, equity may intervene and recognise an equitable mortgage.

35
Q

What remedies are available to lenders in the context of mortgages?

A
  • Possession
  • Power of Sale
  • Debt Action
  • Appointing a Receiver
  • Foreclosure
36
Q

How does power of sale arise?

A

When the mortgage money is due, i.e. legal date for redemption has passed or any instalment of the mortgage money has become due under an instalment mortgage.

37
Q

How does the power of sale become exercisable?

A

i) the lender has given the borrower notice to repay the loan amount and the borrower has not paid the sum for three months after such notice; or

ii) interest is in arrears for two months after becoming due; or

iii) the borrower has breached a term of the mortgage (other than the covenant to pay the mortgage money or the interest thereon).

38
Q

What duties do lenders owe to borrowers when exercising the power of sale?

A

In equity.

The lender must:

a) act in good faith and not cheat borrowers (e.g. the property must be properly advertised and the lender cannot sell hastily at a knock down price); and

c) take reasonable care to obtain the true market value of the property at the date of sale. Lenders are not under any obligation to delay the sale in order to maximise the price of the property.

39
Q

How must the selling lender distribute the proceeds of sale?

A

In according with s105 LPA 1925, to pay:

a) the costs of redeeming any prior mortgages (other mortgages with priority over the selling lender);
b) the lender’s expenses of sale;
c) the lender’s own mortgage; and
d) the balance (if any) to the persons entitled to the equity of redemption (i.e. subsequent lender or borrower).

40
Q

What is the limitation for a lender to recover debt by an action on the borrower’s covenant to pay?

A
  • Six years for the recovery of interest
  • Twelve years for the recovery of capital
41
Q

What are the two stages of foreclosure?

A

This is available by application to the High Court once the legal date of redemption has passed.

i) Foreclosure Nisi directing the preparation of accounts of what is owed followed by a period of (usually) six months in which to pay; and

ii) Foreclosure Absolute which has the effect of vesting title to the property in the lender and extinguishing the equity of redemption held by the borrower.

This process forecloses the mortgage which brings the mortgage to an end and vests the title in the lender.

42
Q

When will equity intervene to create a lease?

A
  • where there is a contract to create or transfer a legal estate; or
  • where there is an attempt to use a deed but the deed is not valid.
43
Q

How does equity create a lease where there is a valid contract to create or transfer a legal estate?

A

There must be:

  • a contract
  • complying with s2 LPMPA 1989
  • clean hands
44
Q

How does equity create a lease when it has been tried to grant a legal estate or interest but failed to use a valid deed?

A

The parties do not intend to enter into a contract but they court finds a contract because the deed fails.

There must be:
- a contract
- complying with s2 LPMPA 1989
- clean hands

45
Q

What the essential requirements of a lease?

A
  1. The estate must be for a duration permitted for a leasehold estate (fixed ascertainable period).
  2. The grant must give exclusive possession (anything less will create a licence).
  3. The grant must have the correct formalities.
46
Q

When will (what you think is) a lease, a licence?

A
  1. landowner retains control
  2. service occupancies
  3. flat sharing agreements
47
Q

What are the key lease covenants?

A

Tenant’s:
- rent
- contribution to insurance
- repair
- alterations
- alienation

Landlord’s:
- quiet enjoyment
- insurance

Quiet enjoyment and obligations in respect of fitness of the property will be implied on the part of the landlord in absence of an express obligation.

48
Q

What should you know about alienation covenants?

A

s19 LTA 1927 translates any qualified covenant into a fully qualified covenant so that the landlord cannot unreasonably withhold consent.

49
Q

How are old leases enforced?

A

Old lease = created before 1 January 1996.

Privity of contract. If T1 assigns lease, still subject to burden of covenants but doesn’t get benefit.

Privity of estate between T2 and landlord. Tenant entitled to exclusive possession, liable to pay rent and is the party in whom the lease is currently vest.

Recovery between tenants. Express indemnity covenant or an implied one.

50
Q

How are new leases enforced?

A

Leases granted after 1 January 1996.

Replaces law of privity of contract and privity of estate with new set of statutory rules.

Tenant bound by covenants of the lease only whilst the lease is vested in them.

51
Q

What is an authorised guarantee agreement?

A

The outgoing tenant is released from any liability under the lease upon assignment. And so, landlord cannot pursue them.

Landlord may improve their position by asking the outgoing tenant to enter into an AGA.

Is an agreement under which the outgoing tenant guarantees that the assignee will perform the lease covenants.

52
Q

When can a landlord require an AGA?

A

A landlord can only seek an AGA where:

  • the lease contains a covenant against alienation without the landlord’s consent (i.e. the tenant cannot sell the lease without first asking the landlord’s permission); and
  • it is either reasonable to do so or, in the case of a commercial lease, it is a condition of the landlord giving its consent.
53
Q

What happens if a former tenant suffers loss due to liability under an AGA?

A

The former tenant may:

  • recover from the assignee on the basis of the principle in Moule v Garrett; or
  • more commonly, on the basis of an express indemnity given by the immediate assignee. Unlike old leases, indemnity covenants are not implied on every assignment.
54
Q

When can a landlord pursue a former tenant for the payment of rent?

A

After they :

  • serve a default notice,
  • on the former tenant
  • within six months of the fixed charge falling due
55
Q

What are the remedies for landlords for non-payment of rent?

A
  • debt action
  • commercial rent arrears recovery
  • forfeiture
56
Q

What are the landlord’s remedies for breach of covenants other than rent?

A
  • damages (lease doesn’t end)
  • specific performance (lease doesn’t end)
  • forfeiture (must be expressly reserved in lease)
  • self-help remedy
57
Q

What are a tenant’s remedies for breach of a landlord covenant?

A
  • specific performance/injunction
  • damages
  • self-help
58
Q

How can leases be brought to an end?

A
  • effluxion of time
  • notice to quit
  • break clause
  • surrender
  • disclaimer
  • repudiatory breach
  • merger
  • frustration
  • forfeiture
59
Q

When will frustration occur with regards to a lease?

A

Only if the building is completely destroyed.

60
Q

What are issues for the landlord with underletting?

A
  1. Undertenant could become direct tenant
  2. The undertenant will be in occupation whilst headtenant is liable
61
Q

What are the mandatory requirements of the RICS Code?

A
  1. Lease negotiations must be approached in a constructive and collaborative manner.
  2. Any party not represented by a RICS member or other property professional must be advised of the existence of the code and must be recommended to obtain professional advice.
  3. Transaction terms must be recorded in writing, subject to contract and must summarise specified details as a minimum. The specified details relevant to the terms and conditions considered in this chapter are:
    - identity and extent of the premises, together with any special rights to be granted
    - length of term including details of any renewal or break rights
    - amount of rent, frequency of rent payments and basis of any rent review
    - liability for payment of insurance premiums
    - ability to assign, underlet, charge or share the premises
    - repairing, permitted use and alterations obligations
62
Q

Can an undertenant ask for proof of title?

A
  • if lease registered with absolute leasehold title, there will be no need to see the title to the freehold

If headlease unregistered:
- the general law entitles the undertenant to call for the headlease and all subsequent assignments under which the headlease has been held for the last 15 years;

  • under the general law, the undertenant is only entitled to call for deduction of the freehold title where the transaction is the grant of a lease for a term of more than 7 years
63
Q

What will the landlord receive on completion of a lease?

A
  • the counterpart lease/underlease executed by the tenant/undertenant
  • any premium payable for the grant (less any deposit paid on exchange of contracts)
  • an apportioned sum representing rent payable in advance under the lease/underlease
64
Q

What will the tenant receive on completion of a lease?

A
  • the lease/underlease executed by the landlord
  • if not already done, properly marked or certified copies of the freehold title deeds (unregistered land only);
  • where relevant, a certified copy of the consent of the landlord’s lender to the transaction. (for underlease - usually in form of licence to underlet)
65
Q

What does the 1954 Act apply to?

A

The Act applies to any tenancy where the property comprised in the tenancy is or includes premises which are occupied by the tenant and are so occupied for the purposes of a business carried on by him or for those and other purposes.

66
Q

What is the effect of the 1954 Act?

A

A tenant who is occupying property for business purposes and who is not caught by any of these exclusions will be afforded protection by the Act.

A tenancy to which this Part of the Act applies shall not come to an end unless terminated in accordance with the provisions of the Act.

67
Q

What are the seven methods of termination provided for in 1954 Act?

A

a) by the service of a landlord’s notice under s25

b) by the service of a tenant’s request for a new tenancy under s26

c) forfeiture

d) surrender

e) in the case of a periodic tenancy, by the tenant giving the landlord a notice to quit

f) in the case of a fixed-term lease, by the tenant serving three months’ written notice on the landlord under s27, so long as the notice does not expire before the contractual expiry date

g) in the case of a fixed-term lease, by the tenant ceasing to be in occupation for business purposes at the end of the lease under s27(1A).

68
Q

What are some disadvantages of unregistered land?

A
  • the epitome of title could contain forged documents
  • investigating title is time consuming (and therefore expensive)
  • the bundle of title deeds may be lost, stolen or destroyed
  • old documents can be very hard to read, particularly when hand written
  • if the epitome of title reveals no third party rights, a buyer may unwittingly purchase land burdened by such rights
69
Q

What is the exception to the rule that legal estates and interests bind the world?

A

The puisne mortgage - a legal mortgage (or charge) which is not protected by the deposit of deeds. Usually a second mortgage.

70
Q

How are equitable interests created?

A

a) a land charge; or

b) the doctrine of notice.

71
Q

What are the main classes of land charge?

A

an estate contract

a restrictive covenant

an equitable easement

a home right

puisne mortgage

72
Q

What happens if you fail to register a land charge?

A

The Land Charge will be void against a buyer for money or money’s worth of a legal estate unless the Land Charge is registered before completion of the purchase.

73
Q

What does the doctrine of notice apply to?

A

a) equitable interests pre-dating 1925; and

b) beneficial interests under a trust (express or implied) whenever created.

74
Q

When is a buyer not bound by equitable interests?

A

When they are ‘equity’s darling’ - i.e. a bona fide purchaser for value of a legal estate or interest without notice of the equitable interest.

75
Q

What is overreaching?

A

A mechanism by which a buyer can take property free of the interests of any person with a beneficial interest under a trust.

In order to work, on completion a buyer must pay the purchase money to a minimum of two trustees. The interests of any person holding a beneficial interest under the trust then lift from the property and shift to the proceeds of sale (the purchase money).

Once overreaching has taken place, any beneficiary under a trust no longer has an interest in the property. Their interest is in the proceeds of sale. The buyer takes the property free of them.

Overreaching is only effective for beneficial interests under a trust.

76
Q

What are home rights?

A

Statutory right of occupation of the matrimonial home for a non-owning spouse or civil partner.

They cannot be overriding interests.

Can be a Land Charge in unregistered land and an entry in the charges register in registered land.