Land Law (Underlying) Flashcards
What characterises proprietary rights?
- Enforced by an action in rem = Use/Possession can be recovered
- Capable of being enforced against a third party
What characterises personal rights in land?
- Can only be enforced by a personal action for damages
- Only binding the original parties - not third parties
What rights are capable of being legal rights?
- Morgage
- Eastement
- Right of Entry
What rights can only take effect in equity?
- Restrictive Covenants
- Interest in trust of land
- Estate Contracts
What are the requirments of a valid land contract?
For example, the contract at the point of exchange in a freehold transaction
- In writing
- Contain all the expressly agreed terms
- Signed by both parties
What is required for a legal estate to be transferred?
It must be transferred or created by deed per LPA s.25(1) - this must be validly executed and delivered - usually TR1 is used
When does legal title pass on a transfer of unregistered land?
At the point of completing the deed.
However, the sale triggers a requirment of first registration within two months otherwise legal title reverts back to the seller.
When does legal title pass on a transfer of registered land?
Legal title only passes upon registration
What effect does a land contract have?
The courts will recognise an equitable interest in land providing (a) there is a document that complies with LPMPA s.2 (e.g. a contract to transfer legal estate); and (b) the remedy of specific performance is available.
This is a proprietary right that can brind third parties - however, it must be protected. Remedies include damages, specific performance and injunctions.
What is the mirror principle?
The land Register should reflect all matters that the property has the benefit and burden of.
The caveat is that overiding interest do not appear and therefore it is not wholly a ‘mirror’
What is the curtain principle?
The register records ownership of the legal estate and legal title.
The register is NOT concerned with beneficial and equitable ownership!!
What is the insurance principle?
The accuracy of the land register is guaranteed by state. If there is an error, the state will indemnify loss.
What are the two test to determine if an object is a fixture or chattel?
- Degree of Annextation Test
- Purpose of Annexation Test
What is the degree of annexation test when deciding if an object is a fixture or chattel?
The more firmly the object is fixed to the land or builfing, the more likely it is a fixture. Even if it is fairly easy to remove.
Does it rest on the land by its own weight (e.g. a chattel) or is it attached, even if easily removable (e.g. fixture)?
What is the purpose of annexation test and when does it apply?
The question is whether the annexation was for the more covenient use of the chattel as chattel or to enhance the land or building in some way.
This test takes priority over the degree of annexation test if there is discrepancy.
Is a tapestry tacked to a wall for enjoyment chattel or a fixture?
If primaprily tacked for enjoyment, it is chattel.
It may be firmly affixed and still chattel if the purpose of tacking is better enjoyment of the chattel.
Is a stone seat standing on its own weight in the garden forming part of the architecture a fixture or chattel?
If chattels are incorporated into the architectural design, they may be fixtures even if not firmly attached due to the purpose test
What is a morgage?
A bundle of proprietary rights granted to the lender as security for a loan
What are the requirments for a legal morgage?
To be a LEGAL itnerest, it must be created by deed (validly executed and delivered) and registered.
If not registered, it could still take effect as an equitable interest.
When would a grant of a morgage be an equitable morgage?
If the borrwer only hold an equitable interest in the land or the morgasge is a defective legal morgage due to lack of compliance with formalities.
What happens if the morgage is repaid in full?
The morgage entries at the Land Registry must be cancelled.
They are considered fully discharged when all reference is removed from the charges register.
What is the equitable right of redemption?
This is the bundle of rights the borrwer has:
- The equitable right to redeem the loan
- Protection from clauses postponing or preventing redemption
- protection from clauses giving a collateral advanatge to the lender
- protection from unconsicionable terms
When can a borrower repay a morgage?
After the legal date of redemption has passed (due to equitable intervention, this is opposed to only on that date)
What effect does a clause postponing the right to redeem have?
The court will not allow a clause that prevents redemption altogether.
They may allow a postponment but only if (a) the borrower gains some benefit and (b) gets back exactly what was morgaged.
What effect does a collateral advantage have when it comes to morgages?
If a lender tries to extract additional value, the offending term may be struck out.
A collateral advantage will be struck out if it is…
* Unconscionatble
* A penalty; or
* Repugnant to the equitable rights
What is a solus ties and will it be upheld?
The lender makes it a morgage condition that the borrower buys all supplies from the lender (e.g. a pub and brewery)
Generally, these solus ties are upheld (collateral advantage) if they end within the morgage term.
What effect would a high interest rate have on a morgage?
Per the equitable right of redemption, courts are able to strike out unconscionable terms.
A high interest rate MIGHT be unconscionable if it is imposed in a ‘morally reprehensible’ manner
Do morgages need to be registered?
All morgages over registered land must be registered to be a legal morgage.
Priority between different registered charges depend upon the order on which they are entered (not created)
In what order to equitable morgages rank?
Against another equitable mortgagee, equitable morgages rank in order of creation.
Can an equitable morgage be registered?
Yes - as a notice on the charges register.
- If registered, it takes priority over subsequent legal morgages.
- As between competing equitable morgages, the entry does not affect priority which is determined by creation
- An equitable morgage not protected will not take priority to a subsequent registrable disposition.
What rights does a lender have in the event of a morgagee default?
- Sue for contractual debt
- Take possession
- Sell the property and apply proceeds towards outstanding debt
- Appoint a receiver to generate income from the property
- Apply for foreclosure (rare)
When does the lender’s statutory power of sale arise?
When the morgage money has become due
When does the power of sale arise in a capital and interest repayment morgage?
As soon as one payment is due
Where a morgage is interest-only, when does the power of sale arise?
At the legal redemption date which is usually 6 months after the commencment.
What happens if a lender exercises their power of sale before it is exercisable despite the grounds for using it (e.g breach) have occured?
The sale to an innocent purchaser is valid but the lender will be liable in damages to the borrower
What is an easement?
A proprietary right to use land which belongs to someone else.
What makes an easement a legal easement?
It fulfuls the requirments as to duration.
If the easement is not granted for the quivalent of a freehold/leasehold estate (e.g. a right to park until the other facility is compleyed) it can only be equitable
What are the only recognised negative easements at law?
- Right to light
- Right to air
- Right of support (e.g dividing wall)
What is a reservation of an easement?
C sells or leases part of their land to D, and retains a right over the land sold/leased to D.
What are the capability rules of an easement?
- Does it fulfil the Ellenborough Park requirments?
- Is there a disqualifying factor?
- Has it been acquired either expressly, impliedly or by prescription?
What is the dominant/servient requrment to be an easement?
There must be a dominant tenement (one that benefits from the right) and a servient (one that is burdened)
An easement cannot exist in gross - for example, exercised independently of land.
When is the land sufficiently proximate for it to ‘accomodate’ the dominant tenement for an easement?
Normally, the dominant and servient will be adjoining.
However, this need not be the case - for example, two fields with a third field in the middle (connected by a right of way) has been held to be sufficient
Can there be common ownership of the two tenenments for an easement to exist?
No.
The dominant and servient must be owned by different people.
Benefits enjoyed over one’s own land are called quasi-easements and only become easements if the land is partitioned.
What does it mean for an easement to lie in grant?
The right must be granted by a capable grantor (power to grant) with a clear description and judicially recognised
Can an easement amount to exclusive possession?
Disqualifying Factor
No. An easement cannot substantially deprive the owners of legal possession.
- Where the servient owner cannot use the land at all, there is no easement.
- Where the servient owner retains some control, apply either the ‘ouster test’ or ‘possession control test’
What is the Batchelor v Marlow Ouster Test?
When deciding whether the right substantially deprives the owner of their use of land, the Batchelor test is whether the owner is left with no reasonable use of the land.
For example, the right holder was able to park cars on the land for such a significant amount of time that the land owner had no reasonable use to part during the time the spaces were needed.
What is the Moncrieff Possession and Control Test?
When establishing exclusive possession for easement claims, the SCOTTISH court held that the proper test (as opposed to Batchelor) is whether the servient owner retains ultimate possession and control.
This is a much more flexible test favouring the person claiming the easement.
Whilst this is only persuasive, the English Courts have been applying the ‘Batchelor’ test in a ‘moncrieff’ manner - favouring the person claiming the easement
For example, the owner of the parking lot has not been deprived of reasonable use (ouster test) becuase he can do anything they like on the parking area except interfering with the parking (control test)
Can a right be an easement if the exercise by the dominant requires the servient (owner of the land) to spend additional money?
No. The right is disqualified because a positive obligation is inconsistent.
For example, a right to supply hot water is nit an easement if it forces the servient to spend money.
Must the servient tenement owner carry out repairs or maintence?
No - they do not need to maintain the land to enable the dominant ownerr to enjoy the easement. However, they have to allow the dominant owner onto the servient land to carry out any repairs at the dominant owners expense.
Is it an easement if the owner has to give permission?
Express permission is always needed when the right is first used.
However, after the intiial grant, the dominant owner MUST exercise the benefit as of right - no permission.
How can an easement be an express legal easement?
Express Acquisition
- Granted/Reserved forever or for a set time period
- Created by deed
- Registered
If this fails (e.g. no registration) it can become equitable if it is (a) in writing; (b) contains all the terms; and (c) is signed by both parties per s.2
If s.2 isn’t complied with > no valid easement
Can an easement for an uncertain term be legal? How can it be equitable?
Express Acquisition
An easement for an uncertain term cannot be a legal easement.
It can only be an equitable easement and must be (a) made in writing; and (b) signed by the grantor
If (a)/(b) are not followed, there is no valid easement.
Can an easement be acquired if not granted expressly?
Yes, there can be an implied acquisition