Leases & Licences Flashcards
What are the two main types of estates in land?
Freehold and Leasehold.
Freehold:
- A type of estate in land where ownership is for an indefinite period, meaning the owner holds the land “forever.”
- The owner of a freehold estate has full ownership rights and can use, transfer, or bequeath the property as they wish.
Leasehold:
- A type of estate in land for a fixed or definite period, such as 99 years or 125 years.
- The leaseholder has the right to use and occupy the land for the duration of the lease but does not own the land permanently.
- Once the lease period ends, ownership of the property reverts to the freeholder.
What is a lease?
An estate in land for a definite period that grants exclusive possession and creates proprietary rights (rights in rem).
What is a license?
A contractual agreement allowing use of land without exclusive possession, creating only personal rights (rights in personam).
Define exclusive possession
The right to exclude all others, including the landlord, from the property.
What are the essential elements of a lease?
Exclusive possession, a definite term, and, not necessary, rent to show the intention to create legal relations.
Why is a definite term necessary for a lease?
It provides certainty on the start and end of the lease, as demonstrated in Lace v Chantler.
Can a lease be valid without rent?
Yes, rent is not essential but can indicate the intention to create a legal estate, as seen in Ashburn Anstalt v Arnold.
What does “substance over form” mean in property law?
The actual nature of an agreement, not its label, determines if it is a lease or a license, as emphasized in Street v Mountford.
What is the significance of Bruton v London & Quadrant Housing Trust?
It established the concept of a non-proprietary lease, based on exclusive possession, even when the landlord did not have a proprietary estate.
What are rights in rem?
Proprietary rights enforceable against the world, typically associated with leases.
What are rights in personam?
Personal rights enforceable only against specific individuals, associated with licenses.
Why might landlords prefer licenses over leases?
Landlords often prefer licenses because they provide greater flexibility in managing their property. Licenses allow landlords to easily evict occupants without the extensive legal protections afforded to tenants under a lease. This is especially beneficial in avoiding tenant protections under laws like the Rent Acts, which make it harder to terminate a lease.
What is a “joint tenancy”?
A form of co-ownership where multiple tenants hold equal shares of the property, with the right of survivorship. All four unities (Possession, Interest, Time, and Title) must be present.
What is “tenancy in common”?
A form of co-ownership where tenants hold individual shares in the property, which can be unequal and do not pass automatically to the other tenants on death.
What is the “four unities” test for joint tenancies?
Possession, Interest, Time, and Title—required for joint tenancy to exist.
What case illustrates the need for certainty in lease duration?
Lace v Chantler (1944), where an uncertain term (duration of the war) made the lease invalid.
What is the principle of “nemo dat quod non habet” in property law?
“No one can give what they do not have,” meaning a person cannot transfer more rights than they possess.
Define “intention to create legal relations.”
The parties’ intention to be legally bound by their agreement, often shown through elements like rent in a lease.
What is a periodic tenancy?
A type of lease that automatically renews for successive periods (e.g., weekly, monthly) until terminated by either party with proper notice.
Define “term of years absolute.”
A leasehold estate for a definite period, which can be for any length of time but must have a clear start and end date.
What does “fee simple” mean?
The most complete ownership interest in land, lasting indefinitely and often referred to as freehold ownership.
What is an “easement”?
A right enjoyed by one landowner over the land of another, such as a right of way. It is an example of an incorporeal hereditament. eg. Imagine you own a piece of land (Land A), and your neighbor owns an adjacent piece of land (Land B). Your neighbor has a right of way over a path on your land, allowing them to cross your property to reach the main road. This right of way is an example of an incorporeal hereditament. It is a non-physical right associated with the land, granting a specific privilege or benefit, but it does not involve owning any physical part of your land.
What are incorporeal hereditaments?
Non-physical rights arising from land ownership, such as easements or profits à prendre, as opposed to physical objects attached to the land (corporeal hereditaments).
Define “right of survivorship.”
A feature of joint tenancies where the surviving co-owners automatically inherit a deceased co-owner’s share in the property.
