Lecture 2: Classification of Property, Rights in Real Estate, Doctrine of Tenures and Estates, Types and Titles to Land, Legal Definitions of Land (Fixtures vs Chattels)

Question 1

What are the Classifications of Property?

Answer 1

1. Personalty/Chattels: Things (All property that is not real estate and is not attached to the land)
2. Real Property/Realty
3. Immovable (Fixtures/Realty/Land) vs
   Moveable (Intellectual Property/Chattels/Personalty)
4. Tangible (Land/Buildings) vs Intangible (Rights in Land/Intellectual Property)

Question 2

What are the unique features of the land and what implications does it have when it comes to land disputes?

Answer 2

1. Immoveable
2. Heterogenous: Location/Orientation will be one-of-a-kind, each property will have a different value
3. Finite: Land on Earth cannot be increased –> Land Reclamation: Redistributing a finite product

In cases related to land, even if damages/compensation are given, it is not adequate to compensate the buyer. There is a need for specific performance to sell the real property itself and adhere to the contract, which is what the buyer wants due to the uniqueness of the property.

Question 3

Name the Nature of Estates & Interest in Land.

Answer 3

1. Ownership/Title (Sale & Evidence of ownership)
2. Physical Aspect (Size/Location)
3. Duration (For how long can I be in this parcel of land?)
4. Other’s Rights

Question 4

Name the 5 Bundle of Rights and what does each right mean.

Answer 4

1. Right of Enjoyment: Legal Owner can conduct any lawful activities
2. Right of Deposition: Legal Owner can transfer the ownership to other temporarily or permanently
3. Right of Possession: Tenants have possessory rights even though no ownership rights
4. Right of Control: Title Holder can place additional restrictions on property use
5. Right of Exclusion: Limit who enters the property, except government officials

Question 5

What is the Doctrine of Tenures and Estates?

Answer 5

Norman Conquest (1066): All Land belongs to the King
King gives people his land --> people had to give back something equivalent --> Feudal Systems of Landholding 

Ownership & Possession (2 Major Questions)

• 1. What use can it be put there?
• 2. For how long can I be there?

Article 160 of the Constitution of the Republic of Singapore: Provides for the succession to the Republic of all property previously vested in crown = ALL LAND BELONGS TO THE STATE

Question 6

State’s Power to Alienate Land

Answer 6

Inherent rights of ownership

Section 3 of State Lands Act: Empowers President to make rules for disposal of State Land (Government Land Sales/Leasing out)

State may issue grants of:

1. Fee Simple
2. Estates in Perpetuity
3. Leasehold Estates
4. Temporary Occupation Licence

Question 7

What are the modes of Alienation?

Answer 7

Section 3A of State Lands Act: State Lands may be alienated, leased, or licensed -

(a) as a parcel of the surface earth, so much of the subterranean space below and so much of the column of airspace above the surface as is reasonably necessary for the use of enjoyment
(b) or as a parcel of airspace of subterranean space, whether or not held apart from the surface of the Earth
(c) or only down to such depth below the surface eath as the President may by order direct (Acts of Parliament)

Question 8

What are the Roles of the Singapore Land Authority?

Answer 8

1. Seeks to optimize land resources
2. Body responsible for allocating land for release to the private section
3. URA acts for SLA to release suitable parcels of State Land for development

Question 9

Explain the State Lands Act.

Answer 9

State Lands Act governs alienation and occupation of State Land.

Question 10

Explain the Foreshores Act.

Answer 10

Foreshores Act is an act to provide for reclamations and to validate and facilitate leases or grants of foreshores and submerged lands.

The alienation and use of land forming part of the foreshore are governed by Foreshores Act. The Foreshore also belongs to the State.

Section 4: Empowers government to carry out public works such as the construction of wharves and jetties, and reclaim the foreshore or sea bed to lease it

Section 5: Provides for the declaration of reclaimed land to be State Land

Section 9: Empowers President to grant leases not exceeding 100 years

Question 11

Explain what is Freehold Estate.

Answer 11

Fee Simple: Most superior title a person could own

1. Duration (For how long can I be there?)
   - Last for life/no time limit –> higher market value
2. Conditions of Usage
   - No conditions put on owners
   - Not affected by conditions/restrictive covenants, but subject to local legislation like a compulsory land acquisition by state, rule of an easement, state’s right to zone and rezone the land –> owner will be compensated

Over the years, a significant proportion of land held under fee simple grants was acquired under the land Acquisition Act and re-alienated under leasehold grants. However, these estates will only be alienated in certain limited circumstances.

Descendants will own the land if the owner passes away OR owner will write will if no descendants –> can be inherited, given away, or sold –> Title will not end

Owners can lease land to willing parties for a leasehold period.

Question 12

Explain what is Estate in Perpetuity/State Land Grant (SLG).

Answer 12

Created under the State Lands Act, since the enactment of Crown Lands Ordinance 1886, Crown/The State alienates land to individuals by way of grant of an estate in perpetuity.

Location creation which is not applicable in the UK –> no English Law influence

1. Duration
   - Forever
   - However, not dependent on the existence of heirs
2. Condition of Usage
   - Bound by the conditions & covenants set out in the State Lands Act
   Terms implied for Estates in Perpetuity:
   - S4: Payment of rent to State
   - S6: Use to which land will be put
   - S7: Restriction and reservations concerning mining and mineral rights
   - S8: Subject to right of way required by the adjacent landowner to access public road (Easements)
   - S9: Collector and offices permitted to enter the land at all times

In the event of a breach of conditions in the State Lands Grant, State may take any step to re-enter.
For non-payment of rent, State has the right to sell land as empowered under S5 of the Land Revenue Collection Act.

Question 13

Explain Leasehold Estates.

Answer 13

1. Duration:
   - Under State Lands Act Rule 10: “the type of title ordinarily issued by the State shall be 99-year leasehold title”
   - Longer leases are sometimes granted to public bodies such as URA and HDB, which in turn sublease to private developers under certain conditions
   - Types of lease tenures:
2. Residential/Comercial: 99 years
3. Industrial/Educational/Religious/Social & Welfare: 30 years
   - Refer to Title Deed to see how long one can own the land & the Terms and conditions imposed.

When there is a leasehold title given, there will be at least 2 parties involved.

1. Lessor: Imposes terms and conditions –> government is the ultimate Lessor
   - Once a lease has reached 99 years and has expired, a lease may be renewed. If not, compensation will not be given too.
2. Lesse

Question 14

Explain Temporary Occupation Licence.

Answer 14

Governed by the State Lands Rules.
For Eg Contractors who have been awarded development projects can apply to SLA for a Temporary Occupation Licence (TOL) to set up temporary worksites on State Land

Duration: It may not be over 3 years. Although licenses can be renewed.

Features:

1. Does not create a tenancy
2. Confers no proprietary interest (in land) (not legally enforceable to have the right to possess or use the property)
3. Does not give licencee exclusive right to occupation of land

Question 15

Explain what is the legal definition of land.

Answer 15

About rights of ownership of land, “he who owns the surface owns everything up to heaven and done to the depth of earth” –> however too vast & not absolute

CASE: Berstein of Leigh (Baron) v Skyiews and General

• No trespass when one flies an aircraft over land at a certain height above ground –> further emphasized by the Air Navigation Act.
• A property owner’s rights are restricted to such height that is necessary for ordinary use and enjoyment of his land and the structure upon it.

Definition of Land in various legislation: Conveyancing and Law of Property Act (CLPA), Property Tax Act and Land Titles Act (LTA)
- Section 2A of the Land Titles Act: “the surface of any defined parcel of the earth, all substances thereunder and so much of the column of airspace above the surface, as is “reasonably necessary for the proprietor’s use and enjoyment”

Subterranean Space “reasonably necessary for the use and enjoyment”:

• Section 3B of Land Titles Act: “any land includes only so much of the subterranean space as is reasonably necessary for the use and enjoyment of the land, being - (a) such depth of subterranean space as is specified in the State Title for that land
• (b) of not such depth is specified, subterranean space to -30 metres from the Singapore Height Datum

Question 16

Legal Definition of Land (Fixtures and Chattels)

Answer 16

Law: Whatever is attached to the land becomes part of the land –> Land also includes Fixtures installed in the property

Question 17

Explain the 2-Factor Test to determine whether an item is a fixture or a chattel. (How do we know something is attached to the land or not?)

Answer 17

1. Degree of Annexation: How deeply is it installed? How difficult is it to take this thing out?
2. Purpose of Annexation: Why was it put there? (Aesthetic/enhance the property’s value = Fixture)
   (Sentimental value = Chattels)

CASE: Holland v Hodgson

• Issue: Whether items attached to the property is considered part of the land
• Law: Whatever is attached to the land becomes part of the land

Need to state assumptions:

• Convenient sake: Chattel
• Purpose: Fixtures
• Putting on its own weight: Chattel
• Deeply installed/cemented: Fixtures
• Location/Noticeability
• Point in time when it was installed

Question 18

Exceptions to definitions of land.

Answer 18

• Mineral Deposits (State Lands Act)
• Restrictions on use of air space (Civil Aviation Act)
• Restrictions arising due to public policy (Building Control Act and Planning Act)