Lectures Flashcards
What is a Fee Simple?
Closest thing to absolute ownership – can potentially last forever.
What is a Life Estate?
Expressed to last for the life of a specific person, smaller estate created out of a fee simple.
How does a Life Estate relate to a Fee Simple?
While the life estate is in possession, the fee simple estate continues in existence.
What happens after a Life Estate ends?
The fee simple again becomes a fee simple in possession.
Who are the parties involved in a strict settlement?
- Sammy (settlor/testator)
- Teri (tenant for life)
- Rupert (remainderman)
What is a trust in the context of land ownership?
Title to property is transferred to a trustee subject to an obligation to hold/apply the property for the benefit of a beneficiary.
What is the Settled Land Act 1882’s definition of a settlement?
Any deed, will, or other instrument by which any land or estate stands limited to or in trust for persons by way of succession.
What was the aim of the Settled Land Acts?
To allow property to stay in the family line into the future and provide for immediate offspring.
What are the problems associated with a Life Estate before the SLAs?
- Life estate ends upon the death of the tenant for life
- Inability to sell interest
- No lender would lend on a life interest.
What did the Settled Land Acts allow the tenant for life to do?
- Sell the land
- Grant leases
- Engage in miscellaneous transactions like exchange and mortgage.
What powers does a Tenant for Life have under the SLAs?
- Sell the fee simple
- Grant leases
- Manage capital and income.
What is required of a Tenant for Life before exercising powers?
Give written notice to at least 2 Trustees of the Settlement at least 1 month prior.
What happens to capital money arising from a sale under the SLAs?
Must be paid to the trustees or the court.
What is the consequence of a Tenant for Life conducting waste?
Consent of the Trustees of the Settlement is required.
What is the significance of Section 56 SLA 1882?
It states that SLAs prevail over conflicting provisions of the settlement.
What is a Joint Tenancy?
Each co-owner has a single interest in the whole land.
What occurs in a Joint Tenancy upon the death of a co-owner?
The remaining co-owners inherit the deceased’s share.
What are the Four Unities required for a Joint Tenancy?
- Possession
- Interest
- Title
- Time
What is a Tenancy in Common?
Each co-owner holds undivided shares in the property.
What is the legal status of a Tenancy in Common under the Law of Property Act 1925?
Creation of a legal tenancy in common was not possible.
What is Severance in the context of co-ownership?
Conversion of a joint tenancy into a tenancy in common.
What happens upon unilateral severance of a joint tenancy?
The beneficial joint tenancy becomes a beneficial tenancy in common.
What did the case Stack v Dowden (2007) establish?
Beneficial shares can be determined based on financial contributions.
What is the role of Trustees of the Settlement?
- Invest money
- Ensure preservation of the estate
- Provide consents for actions of the Tenant for Life.
What is the legal effect of the Settled Land Acts on strict settlements?
New strict settlements cannot be created; attempts will create Trusts of Land.
What is the purpose of Section 36(2) LPA 1925?
It prevents the severance of a legal joint tenancy.
What is the inferred intention in the context of beneficial joint tenancies?
To have beneficial entitlement in the proportions of financial contributions
This intention takes effect as a constructive trust.
What section of the LPA 1925 addresses severance by unilateral statutory notice?
Section 36(2)
This section is not available in Northern Ireland.
What are the requirements for a notice to be valid under Section 36(2) LPA 1925?
- Clear and unequivocal
- Indicate immediate intention
- Served in writing to all beneficial joint tenants
- Can be sent by post
If sent by post, it must be addressed correctly and sent by recorded delivery.
In Re 88 Berkeley Rd [1971], what happened with the notice of severance?
Miss Goodwin signed for the notice on behalf of Miss Eldridge, who never saw it
As a result, Miss Eldridge was not entitled to the right of survivorship after Miss Goodwin’s death.
In Kinch v Bullard [1998], what action did the wife take to prevent survivorship?
She instructed her solicitor to serve notice on her husband
However, she later tore up the notice, which was still deemed served.
What was the issue in Quigley v Masterson [2011] regarding the notice served?
The notice was ineffective due to incorrect spelling of the name and incorrect place of business
This highlights the importance of accuracy in serving notices.
What constitutes severance by alienation?
- Operating on Own ‘Share’
- Enforceable contract to sell
- Lease
- Mortgaging the share
This can occur even if the sale is not completed.
What did the case Burgess v Rawnsley [1975] establish about mutual agreement?
An agreement must be reached but need not be legally enforceable
The case involved a misunderstanding regarding a joint tenancy.
What is the significance of a unilateral statement of intention to sever?
It may be sufficient if communicated to the other joint tenant(s)
This is based on Lord Denning’s suggestion in Burgess v Rawnsley.
True or False: In Greenfield v Greenfield [1979], conversion of a house into separate maisonettes meant severance occurred.
False
The court ruled that this did not constitute severance.
What does the Forfeiture Act /NI Order 1982 pertain to?
Homicide in the context of joint tenancies
It addresses situations where one joint tenant is guilty of violence resulting in the death of another.
What is the definition of assignment in the context of leases?
Complete transfer of the tenant’s interest under the lease
The assignor retains no interest after the assignment.
What is sub-letting?
The original tenant grants a new lease to a third party for a term less than the original lease
The original tenant retains a reversion.
What is the basic common law position on assignment and sub-letting?
The lessee can dispose of their interest unless prevented by clear words in the lease
This includes express or implied restrictions.
What does Section 19(1) of the Landlord and Tenant Act 1927 state?
Permission for assignment must not be unreasonably withheld
This is a protection for tenants against arbitrary refusals.
What must a landlord provide in response to a written request for assignment according to the Landlord and Tenant Act 1988?
A written response stating reasons for any refusal
This must be done in a reasonable time.
What are the implications of a breach of covenant in England regarding assignment?
It may trigger a forfeiture clause but will not render the transaction void
This reflects the differing treatment of breaches in England compared to Northern Ireland.
What does Section 10 of Deasy’s Act address?
Validity of assignment and the need for written consent for assignments
It sets the framework for assignments in Northern Ireland.
What is the effect of a valid assignment under Section 16 of Deasy’s Act?
The landlord releases the original tenant from future breaches of the lease
However, the landlord retains remedies against the assignee.
What is the primary right of a tenant concerning sub-letting?
The tenant has a prima facie right to sub-let unless restricted by the lease
This right can be affected by express terms in the lease.
What case established the advantage of vacant possession of the premises?
Bates v Donaldson (1896)
This case highlights the importance of ensuring that the premises are available for occupation by the tenant.
Is it reasonable for a landlord to refuse consent to an assignee who competes with their business?
Yes, as established in Sargeant v Macepark (Whittlebury) Ltd (2004)
This case affirms the landlord’s right to protect their business interests.
What are estate management reasons in relation to landlord consent?
Estate management reasons may be reasonable, as seen in Crown Estate Commissioners v Signet Group plc (1996)
However, consent cannot be refused for a collateral purpose, as indicated in Bromley Park Garden Estates Ltd v Moss (1982).
Who bears the burden of proof in landlord and tenant assignments?
The burden is on the landlord.
Under which section of the Landlord and Tenant Act 1988 must reasons for refusal be communicated to the tenant?
Section 1(6)
This section mandates that reasons for refusal must be clearly conveyed.
What does the case No.1 West India Quay (Residential) Ltd v East Tower Apartments Ltd (2018) establish?
Any one free-standing reason can provide a legitimate basis for reasonable refusal.
In Northern Ireland, is an assignment contrary to the lease void?
No, unlike in England and Wales.
What are the main disadvantages of the pre-1996 law regarding assignments?
- Continuing liability of an original tenant post-assignment
- Requirement that covenants must touch and concern the land
What does the Landlord and Tenant (Covenants) Act 1995 abolish for leases created after January 1, 1996?
It abolishes the continuing liability of the original tenant and the requirement for covenants to touch and concern the land.
What replaces the concept of covenants that touch and concern the land under the 1995 Act?
Landlord covenants and tenant covenants.
Under section 3 of the Landlord and Tenant (Covenants) Act 1995, when are covenants enforceable by/against assignees?
Unless specifically expressed to be personal to any person.
What happens to a tenant’s obligations upon assigning the whole premises under section 5 of the 1995 Act?
The tenant is released from tenant covenants and ceases to benefit from landlord covenants.
What is the implication of assigning only part of the premises under section 5?
The same effect applies to that part; obligations are similarly released.
What does section 16(3) of the 1995 Act allow landlords to require from tenants?
An agreement guaranteeing that the assignee will perform the tenant covenants.
What limits the guarantee agreement under section 16(4)?
It can only extend to breaches by the direct assignee of the former tenant.
What happens if a tenant assigns the lease to an assignee who further assigns it to another?
The former tenant can only guarantee performance for Assignee 1.
What is the consequence of an assignment occurring in breach of covenant according to section 11(2)?
Section 5 does not apply.
What must a landlord do to act against the original tenant under section 17?
Serve notice on the original tenant within 6 months of the liability arising.
What can a former tenant seek after paying the landlord according to section 19?
An overriding lease.
Under which section of the LPA 1925 can the landlord act against the assignee?
Section 77.
