Nature of Land Flashcards
Are fixtures part of the land according to the definition of land?
Yes
Test for determining whether object is a fixture or chattel?
1) The degree of annexation;
2) The purpose of annexation.
Explain the degree of annexation test
Refers to how firmly affixed the object is to the land. if the object cannot be removed without causing significant damage to the land, this indicates its a fixture not chattel.
The degree of annexation is an initial test that…
Raises presumption the item is a fixture but this presumption can be rebutted.
Explain the purpose of annexation test
Asks why has the object been attached to the land.
Effectively, if object was attached to land to enhance the land or create permanent improvement, it is a fixture. if attached to obtain better enjoyment of the object itself, it is a chattel.
Name examples of fixtures
- kitchen units
- bathroom fittings
- items installed by a builder
Name examples of chattels
- free standing cooker
- ornamental items (eg pictures)
- carpets, curtains and rugs
Items which are part of the overall architectural design are….
usually deemed fixtures despite ease of removal.
Are fixtures and chattels included in the sale of a property?
- fixtures usually included in the sale.
- chattels usually not contained in the sale
Property rights are either….
legal or equitable
Right will be legal if
- it appears in s1(1) or 1(2) of LPA 1925; and
- meets necessary formalities
Equitable rights are
anything which falls outside list in s1(1) and 1(2) of LPA 1925. note that equitable interests also need to meet necessary formalities.
S1(1) LPA 1925 provides there are two types of estates that can be legal…
- estate in fee simple absolute in possession (freehold)
- term of years absolute (leasehold)
What is a fixed term lease?
a lease for any period of time, provided the maximum duration is certain (*eg 99 years, 2 academic years, 7 days etc).
What is a periodic lease?
a lease for a fixed period, which extends itself automatically until one party terminates it (eg if monthly it will extend by one month every month. notice of 1 month would likely be required to terminate it).
S1(2) LPA 1925 tells us that the following interests in land are capable of being legal provided they meet the relevant formalities. These are:
-Rentcharges
-Easements
-Charges by way of legal mortgage
-Rights of entry
-interests in land which arise by operation of statute
Describe rent charges
- right to receive periodic payment charged on the land.
- only capable of being a legal right provided:
a) they are perpetual or
b) for fixed duration.
Define easement
right of one landowner two make use of another nearby piece of land for the benefit of their own land (eg right of way).
Define profits
right to go on someone less land and take from that land something which naturally exists (eg right to fish)
Person holding legal title (freehold or leasehold) is known as:
a trustee
Resulting trust (in relation to land) whereby a person who is not legal owner, contributes directly to the purchase price of the property, means….
that person acquires an interest propionate to their contribution, and therefore has an equitable interest in the share of the property (ie if contributed 10% beneficial interest in 10% of the value of the property).
Constructive trust (relation to land)…
- person who is not legal owner makes contribution to property other than financial at time of purchase (eg mortgage payments, making substantial improvements to the property). they therefore have a beneficial interest in the land (but is not proportionate to contribution made).
Is interest under constructive trust in property proportionate to contribution?
No.
Name three interests in land which are equitable in nature.
1) beneficial interest under a trust
2) restrictive covenant
3) estate contract
Is a licence and interest in land?
does a licence bind a successor in title?
No.
No - binding only between original parties.
Give two examples of a licence.
1) temporary occupation as a lodger
2) right of access
Can a licence be revoked at any time?
yes.
S52(1) LPA 1925 provides a deed is required to….
create or transfer legal estate/ interest in land.
What does s1 of LP(MP)A 1989 set out?
requirements of a deed to transfer legal estate/ interest in land.
these are:
- must be in writing;
- make clear on its face it is a deed;
- signed by both parties and properly witnessed; and
- delivered.
Explain how a parol lease is created.
- They are for a fixed term off three years or less;
- Rental payments are at best rate possible (ie market rate);
- Possession can be instant (tenant can immediately possess and enjoy the land).
- Landlord must not charge a fine/ premium (defined as a line off capital sum).
S2 LPMPA 1989 - contracts for the creation/ transfer of rights in land must:
- be in writing;
- incorporate all expressly agreed terms in document;
- be signed by or on behalf of both parties.
Examples of transactions requiring s2 LPMPA 1989 formalities to be complied with are:
a) sale of freehold or leasehold
b) grant of lease;
c) creation of an option;
d) creation of an easement (unless specific type which does not need formalities).
A contract to create or transfer a legal property right will create an equivalent equitable property right provided:
claimant has clean hands.
An the absence of a deed, a contract to create a legal lease will:
create an equitable lease (same applies to easements).
What are the requirements for a legal easement?
It must be granted forever or for a fixed term (ie leasehold or freehold) and be created by deed (unless the parol lease exemption applies).
Give the requirements for an equitable else to be created.
1) In writing;
2) Signed by both parties and contains all terms;
What right does the Family Law Act 1996 create in respect of non-property owning spouses?
The spouse will have a right of occupation in the property regardless of the fact they have no legal or equitable interest. This is referred to as home rights.
Light fittings are usually deemed as fixtures. What could indicate a light fitting is a chattel?
If the light fitting is attached by screws it is likely to be deemed a chattel (TSB Bank v Botham).
