Nature of Land Flashcards
SUMMARY OF EVERYTHING
Difference between real and personal property?
- Real property = land
- Personal property = other types of property e.g. cars, TVs, shares
Different rules apply to both
Why is it technically incorrect to say we ‘own’ a piece of land?
All land in E+W belongs to the Crown, we own a right in the land
Land law is the study of proprietary/property rights in the land and responsibilities/duties in land related relationships
What is the difference between a proprietary and a personal right in terms of remedies?
- Proprietary - use/possession of the land can be recovered (can be enforced by an action in rem)
- Personal - can only be enforced by a personal action for damages (use/occupation cannot be recovered)
What is the difference between a proprietary and a personal right in terms of enforcement?
Proprietary rights can be enforced against TP, personal rights only bind the original parties to the right
What rights are capable of being proprietary?
I.e. what are the proprietary rights?
- The freehold estate
- The leasehold estate
- An easement
- A mortgage
- A restrictive covenant
- An estate contract
- A beneficial interest in a trust of land
Holder of proprietary right in land has a right to occupy/use/restrict what can be done with the land in some way
If a particular use of the land is recognised as having proprietary status, does this mean that the actual right under consideration will have proprietary status?
No - must look at nature, creation ad protection of rights in land to determine whether they are proprietary or personal
E.g. right to park car in neighbour’s garage may be an easement (proprietary) but the ability to do so will not always be an easement; same use could be either proprietary or personal depending on circumstances
How can the creation of a right tell us whether it is proprietary?
If there are formalities - most proprietary rights subject to strict requirements re formalities for their creation
What is meant by ‘owning’ a piece of land, if not the physical land itself?
Owning a right to possess the land
Powerful proprietary right
Are legal estates and legal interests required to be created by deed?
Aka easements
Generally yes.
* Easement are capable of being legal as lonh as they are equivivalent of two legal estates (fixed period or forever).
* BUT, prescriptive easement: not created by way of express agr between parties.
What is a proprietary right of possession called?
An estate in the land
Either freehold or leasehold
What is the freehold estate?
AKA the fee simple absolute in possession
A right of possession which lasts until the owner for time being dies without heirs (without blood relatives and without disposing of it by will)
The highest possible estate in land
Holder of frehold in piece of land = owner
What is meant by fee simple absolute in possession?
- Fee = capable of being inherited
- Simple = can be inherited by heir and includes distant relatives
- Absolute = not liable to end prematurely (not determinable or subject to a condition)
- In possession = fee simple owner has current right to use and enjoyment of property (physical possession not necessary; can receive rent if let)
Is the owner of the freehold free to sell it or give it away?
Yes - alternatively may grant away a lesser estate for a shorter period of possesion than their own (lease)
What is the leasehold estate?
Where a freehold owner grants a lesser estate of a certain duration
Estate granted in term of years absolute (leasehold)
Can be weekly, monthly, yearly, or centuries long
How is lease created?
Lease must be created by deed unless it falls within parol lease exception.
What does lease require?
Exlusive possesion for a fixed period of time.
Ability to control land and exclude everyone, including landlord
What is parol lease exception?
Short-term lease requires no formalities and can be created orally. To be legal, must meet criteria:
* 3 years or less
* immediate right to possession
* market rent
* not charge a fine or permium (one-off payment at the start)
How can equitable lease arise?
Doctorine of Walsh v Lonsdale
Court recognises equitable lease based on existence of contract and availibility of specific performance.
For equity to recongise equitable lease there must be:
1. contract;
2. complying with s.2 LPMPA: in writting and signed; and
3. clean hands
Equity regards as done that which ought to be done
Must have signed writting
Coastworth - valid contract for lease of farm but lease was not comleted by deed therefore could not be legal. C took possesion but breached term. Held: court would not recognise equitable lease as C breached contract - no clean hands.
What if there is a valid contract in existence but no deed?
For equity to recongise/intervene in an arrangement there must be:
1. written contract;
2. incorporates all agreed terms
3. complying with s.2 LPMPA: in writting and signed by all parties;
4. clean hands of person seeking
Aka no deed
- Contract to create lease = will create an equitable lease;
- Contract to create legal easment = will create equitable easement
What if there is a contract to create legal lease but it fails to comply with all formalities of a deed?
- It cannot be legal lease as it was not created by deed.
- But if contract/document complies with s.2 LP(MP)An1989: in writting, signed by both parties and contains all terms = it is equitable -> equitable lease is an Estate Contract
How is a sub-lease created?
Leaseholder (tenant) grants a lease of a lesser duration out of their own leasehold while retaining the original lease
What is the difference between the freehold reversion and the leasehold reversion?
- Freehold reversion = residue of the estate after the granting of a lease
- Leasehold reversion = what the residue is known as if grantor holds a leasehold estate (when lease ends the right to physical possession of land automatically reverts back to landlord)
What is meant by a hierarchy of rights of possession?
Same piece of land may simultaneously be subject to a freehold, a lease and a sub-lease - holder of each owning not the land but right to possession of land subject to the lesser rights they have granted for their particular ‘slice of time’
What is a commonhold?
A type of freehold created out of a freehold registered estate
* Designed to meet needs of owners of flats/apartments
* No overall landlord - just a freehold owner; a company called a commonhold association
* The owner of each flat is a member of the association
* The commonhold association is responsible for maintaining the communal areas of the building
Fewer than 50 blocks across E+W are commonhold properties
What is the difference between an estate and interests in land?
Are both proprietary rights
- Estate = right to possess the land (proprietary rights of possession)
- Interest = use or enjoy the land in some way (gives holder the right to do something/restrict what can be done on land)
Interests will be either legal or equitable
What is the difference between an interest and incumbrances on estate?
Nothing they are the same thing!!!
What is the recoverability and enforcability of an interest?
- Can be recovered (as an action ‘in rem’)
- Can be enforced against third parties (new owner of burdened land)
Very powerful proprietary interest
What are the legal interests?
The interests set out in s1 LPA
- Mortgages
- Easements (granted for a term equivalent to a freehold of leasehold estate [forever/certain term])
- Rights of entry
What are the equitable interests?
Referred to in s1(3) of the LPA which only take effect in equity
- Freehold covenants
- Estate contracts
- Interests in a trust of land
- Easements granted for an uncertain term
- Mortgage granted over an equitable interest in land
Why is the distinction between legal and equitable interests important?
- Remedies - legal interest means entitled to automatic damages without considering discretion of the case (+ equitable remedies) - an equitable interest means no automatic damages, is at discretion of court
- Enforcement
What is a mortgage?
Interest in the land granted by the borrower as security for a loan
Rights = to possess and sell the land in event of default
Who grants a mortgage?
The borrower
NOT the lender
What is an easement?
A proprietary right to use land which belongs to someone else (not exclusive right to occupy/use)
E.g. right of way, drainage, storage, parking
When is easemenent legal or equitable?
- Easement capable of being legal if it is granted for a period equivalent to a fee simple absolute in possession (i.e. freehold which can last forever) or a term of years absolute (i.e. a lease which must be granted for a fixed duration) = must be created by deed.
- Equitable easement: granted for indefnite period of time (inherenly equitable) = must be written anf signed.
Examples of indefinite (equitable) easement: for A’s life time, so long as he owns the property etc.
What formalities are required for legal easement?
Requires formality of a deed:
* in writting
* clear on its face that it is a deed
* signed
* witnessed (by one witness); and
* delivered
What formalities are required for inherently equitable easement?
Aka easement granted for indefnite period
- must be made in writting
- must be signed by grantor
- no substantive reg needed for equitable easement
Expressly created equitable easement, which does not satisfy duration requirements (not forever or fixed) is created by signed writing to be valid. E.g. some comtract/agr/deed would satisfy this requirement.
What if proposed duration of easement is uncertain (indefinite)?
It means it is not capable of being legal easement. It is only capable of being equitable easement.
Required formality: written doc signed by owner
With expressly created easement and time is stipulated (fixed or indefnite), when can equitable easement still arise?
Equitable easement can arise when formalities have not been fully followed to create a legal easement
What is a right of entry?
A right for landlord to re-enter leasehold premises and end the leashold estate in event of tenant default/specified event (aka forfeiture clause)
What are the formalities for a legal mortgage, an express legal easement or right of entry as an interest in registered land?
Granted by deed + registered at LR against the title of the burdened land
What is a covenant?
A promise
Will usually arise between freehold owners when one person sells part of land and wishes to ensure buyer does nothing which could affect the amenity and value of seller’s retained land
What is a restrictive covenant and its formalities?
- Covenants that prevent a landowner from doing something on their land
- Always equitable interest only
- Formality: In writing and signed by grantor
E.g. not to sell alcohol, not to build, only to use for residential
Covenant = equitable interest, not essential to create by deed; just comply with minimum reqs for contract: created by signed writing.
In registered land, how can restrictive covenant be protected (to bind successor in title)?
By notice on Charges Register
What is an estate contract? What are its formalities?
- A contractual right to a legal estate (whether freehold or leasehold); a failed legal lease/easement/mortgage
- In writing, contains all terms and signed by both parties
Doesn’t comply with proper formalities but has these characteristics
Will an estate contract always be created deliberately?
- Deliberately - option agreement, right of pre-emption
- Non-deliberately - try to create a valid deed (legal interest/estate) and fail - equitable lease, equitable mortgage, equitable easement (instead of legal!)
What is an interest in a trust of the land?
Where a piece of land is placed in a trust, the B has an equitable interest in the land
When is trust interest is overriding?
Binding on buyer of land even if there is no entry on register in respect of it
If beneficiary is in actual occupation of house and conditions under Para 2 Schedule 3 of Land Registration Act 2002 are satisfied.
Overriding interest binds even though there is no mention of them in registered title.
This is intended to provide protection to vulnerable occupiers whose interests in the land may have been created informally and without full regard to the usual requirements. It requires purchasers to be prudent when inspecting property, as upon a reasonable inspection the purchaser ought to be made aware of potential unrecorded interests and the need for further inquiry.
Can beneficiary register a restriction on land on Proprietorship Register?
To signify there is trust of land
Yes, but this does not protect trust interest, instead, it alerts a potential buyer of the need to overreach trust interest
What is the difference between an express trust and implied trust re interest in a trust of the land? What are the formalities for each?
- Express trust = trust expressly created (i.e. declaration of trust) - evidenced in writing and signed by declarant
- Implied trust = A and B both contribute 50% of purchase price, land only transferred to A, equity recognises B’s contribution and implies a trust (A and B both Bs) - no formalities
What is statuory home right?
Right of a non-owning spouse (wife/husband) under Family Act 1996 to home rights.
Conditions:
1. parties are legally married or civil partners (not divorced)
2. home is, has been or is intended to be the martrimonial home
Home rights do not create interest in land & exist indepdent of equitable interest under trust.