Nature of land

Question 1

What is the definition of “fixtures” and how do they relate to the sale of land?

Answer 1

Fixtures are items that are physically attached to the land and are considered part of it. They are included within the definition of land and must be transferred to the buyer during the sale of land, unless there is a specific contractual provision allowing the seller to remove them. Fixtures lose their personal property status once affixed to the land.

Question 2

How are “chattels” different from “fixtures,” and what happens to chattels in a land sale?

Answer 2

Chattels are movable items that remain personal property and do not become part of the land. In a land sale, the seller has the right to remove any chattels unless agreed otherwise in the contract.

Chattels do not pass automatically to the buyer and can include items like furniture or personal belongings that are not permanently attached to the land.

Question 3

Explain the analogy used by Blackburn J in Holland v Hodgson to differentiate between fixtures and chattels.

Answer 3

Blackburn J provides an analogy where blocks of stone placed one on top of the other without mortar to form a dry stone wall would be considered fixtures, becoming part of the land.

However, the same stones, if stacked in a builder’s yard for convenience, would remain chattels. This example demonstrates that the manner and purpose of placement determine whether an object is a fixture or a chattel.

Question 4

What is the “degree of annexation” test in determining whether an object is a fixture or a chattel?

Answer 4

The degree of annexation test assesses how firmly an object is attached to the land. If the object is resting on the land by its own weight or lightly attached, it is more likely to be a chattel.

However, if the object is affixed in a way that it cannot be removed without causing significant damage to the land or building (e.g., a fireplace, panelling, or conservatory), it is likely to be classified as a fixture.

Question 5

What does the “purpose of annexation” test involve, and why is it the key factor in determining whether an object is a fixture?

Answer 5

The purpose of annexation test examines the reason why the object was attached to the land. This test takes precedence over the degree of annexation.

If the object was attached to enhance the land’s value or provide a permanent improvement, it is considered a fixture. However, if it was attached to the land for the enjoyment of the object itself (e.g., a freestanding sculpture or an appliance), it remains a chattel. This test focuses on the intention behind the attachment.

Question 6

How can technological advances affect the application of the degree of annexation test in modern cases?

Answer 6

Technological advances have made it easier to affix and remove items from land or buildings without causing significant damage. For example, modern wall-mounted appliances or fixtures like air conditioning units or television brackets may be easily removable, even though they appear to be fixtures.

This complicates the application of the degree of annexation test, as objects that are firmly attached may still be considered chattels due to ease of removal.

Question 7

Provide examples of objects classified as fixtures and chattels according to the two-stage test in TSB Bank Plc v Botham [1996].

Answer 7

According to TSB Bank Plc v Botham, fixtures include items that are integral to the functioning of the property or would cause damage if removed, such as kitchen units, built-in ovens, and bathroom fittings (basins, baths, toilets).

Chattels, on the other hand, include free-standing appliances like a cooker connected by a flex, pictures, carpets, and curtains, as these can be removed easily without affecting the structure of the property.

Question 8

How did the case D’Eyncourt v Gregory [1866] affect the classification of certain removable items as fixtures?

Answer 8

In D’Eyncourt v Gregory [1866], items such as tapestries, marble vases, and garden ornaments were classified as fixtures even though they were easily removable.

This was because they were part of the overall architectural design of the property. The case established that certain objects, despite their removability, could be fixtures if they were integral to the aesthetic or architectural scheme of the property, blurring the line between fixtures and chattels.

Question 9

What does the case Elitestone Ltd v Morris [1977] illustrate about the transition of chattels to fixtures over time?

Answer 9

Elitestone Ltd v Morris illustrates that chattels can become fixtures when their physical characteristics change in a way that makes them inseparable from the land. For instance, a mobile home resting on its own weight remains a chattel because it can be easily removed. However, if a house is built in such a way that it cannot be removed without being destroyed, it becomes a fixture because it is intended to be a permanent part of the land.

Question 10

What are the five types of interests in land capable of being legal under s 1(2) LPA 1925?

Answer 10

1. Easements and profits: Rights over another person’s land (like a right of way or the right to collect resources) that are granted for a period equivalent to a legal estate (e.g., a fixed term or forever).
   2. Rentcharges: A right to receive a periodic payment from land, typically created to secure a debt or other obligation.
   3. Charges by way of legal mortgage: When land is used as security for a loan, the lender can hold a legal charge, allowing them to take possession if the loan isn’t repaid.
   4. Rights of entry: The right for a person to enter land under certain conditions (e.g., if a tenant breaches a lease term, a landlord might have a right of entry).
   5. Certain leases: Leases or tenancies for a certain term, such as a lease for a number of years.

Question 11

What are “easements” and “profits,” and what makes them capable of being legal interests in land?

Answer 11

Easements are rights granted to one landowner to use another’s land for the benefit of their own land (e.g., a right of way). Profits are rights to enter another person’s land and take something from it (e.g., fishing or grazing cattle).

Both easements and profits are only capable of being legal if granted for a duration equivalent to an estate in fee simple absolute (freehold) or a term of years absolute (leasehold). If granted for an uncertain duration, they cannot be legal.

Question 12

Explain the concept of “rentcharges” and the conditions under which they can be legal.

Answer 12

A rentcharge is a right to receive periodic payments charged on land, typically from the landowner.

Rentcharges are relatively uncommon and can only be legal if they are perpetual (lasting forever) or for a fixed term (a term of years absolute). Rentcharges that do not meet these conditions are not capable of being legal.

Question 13

How does a legal mortgage function as an interest in land, and what are the roles of the mortgagor and mortgagee?

Answer 13

A legal mortgage is an interest granted by a borrower (the mortgagor) over their property to a lender (the mortgagee) as security for a loan or debt. While commonly referred to as “getting a mortgage,” it is the lender who provides the loan, and the borrower grants the lender security through the mortgage. The mortgage is a legal interest in the land, and it remains until the debt is repaid.

Question 14

What are “interests arising by operation of statute” in land law, and provide an example of such an interest?

Answer 14

Interests arising by operation of statute are rights over land that come into existence due to legislation, without any formal agreement between parties. These rights are usually held by government agencies. An example is the charge for inheritance tax or the charge for Legal Aid, where statutory provisions create these rights over land without the need for a deed or contract.

Question 15

What are the two types of “rights of entry” in land law, and under what circumstances can they be exercised?

Answer 15

The two types of rights of entry are: (1) A landlord’s right to forfeit a lease if the tenant breaches the terms, which allows the landlord to bring the lease to an early end;

(2) A rentcharge owner’s right to reclaim the land if the rent due under the rentcharge is not paid. Both types of rights allow the person with the benefit of the right to re-enter the land under specific conditions.

Question 16

How do equitable interests in land differ from legal interests, and in what ways can equitable interests be created?

Answer 16

Unlike legal interests, which must meet formal requirements (e.g., being created by deed), equitable interests can arise in various ways and are often created when the formalities for a legal interest are not met. Equitable interests can be created by: (a) contracts to create or transfer a legal interest, (b) failure to comply with formalities when granting a legal interest, (c) express or implied trusts, and (d) the grant of interests that can only exist in equity, such as a restrictive covenant.

Question 17

What is an “express trust” in the context of land law, and who are the parties involved?

Answer 17

An express trust is a legal arrangement where the legal title to property (such as land) is held by one person (the trustee) for the benefit of another (the beneficiary). The person who creates the trust is called the settlor.

The trust separates legal ownership from beneficial ownership, meaning the trustee holds the legal title while the beneficiary enjoys the benefits of the property. The express trust is typically created by a written declaration.

Question 18

Describe a “resulting trust” and explain how it arises in relation to land ownership.

Answer 18

A resulting trust arises when a person who is not the legal owner of the land contributes directly to the purchase price of the property. This person acquires an equitable interest in the land proportionate to their contribution.

For example, if someone contributes 50% of the purchase price, they may hold a 50% beneficial interest under a resulting trust, even if they are not named on the legal title.

Question 19

What is a “constructive trust” and how does it differ from a resulting trust in land law?

Answer 19

A constructive trust arises when a person, who is not the legal owner of a property, makes contributions that benefit the property, such as paying part of the mortgage or making significant improvements.

Unlike a resulting trust, the beneficial interest under a constructive trust is not necessarily proportional to the financial contribution. Instead, it is based on the parties’ overall conduct, including both financial and non-financial contributions. The court quantifies the interest based on the circumstances.

Question 20

What are interests in land that are “equitable by nature,” and give examples of such interests?

Answer 20

Interests that are equitable by nature cannot be legal because they are not listed in s 1(1) or (2) LPA 1925. Examples include:
(a) a beneficial interest under a trust (whether express, implied, resulting, or constructive),
(b) a restrictive covenant, which limits how land can be used,
(c) an estate contract, which arises when a contract for the sale or lease of land is made but has not yet completed.

Question 21

What are “home rights” under s 30 of the Family Law Act 1996, and when do they arise?

Answer 21

Home rights are statutory rights of occupation granted to a non-owning spouse or civil partner in the matrimonial home. These rights arise if: (a) the parties are legally married or civil partners (and not divorced), and (b) the home is, has been, or is intended to be the matrimonial home. Home rights do not create an interest in land and exist independently of any equitable interests under a trust.

Question 22

How does a “licence” differ from an interest in land, and what are the limitations of a licence?

Answer 22

A licence is a personal right that allows the licensee to use land for a specific purpose, such as accessing or temporarily occupying the land. It does not create an interest in land and is only enforceable between the original parties (licensor and licensee).

Unlike an interest in land, a licence can be revoked at any time, and it does not bind future owners of the land.

Question 23

What are the formal requirements for the creation or transfer of a legal estate or interest in land under s 52(1) LPA 1925?

Answer 23

To create or transfer a legal estate or interest in land under s 52(1) LPA 1925, a deed is required. The deed must:
(a) be in writing,
(b) state clearly on its face that it is a deed,
(c) be signed by the parties involved, (d) be witnessed (by one witness), and (e) be delivered.

Without a deed, the legal estate or interest cannot be validly created or transferred.

Question 24

What are the exceptions to the requirement of a deed for short-term leases under s 54(2) LPA 1925?

Answer 24

The exceptions to the requirement of a deed for short-term leases under s 54(2) LPA 1925 are called “parol leases,” which can be created orally. To qualify as a parol lease and be legal without a deed, the lease must:

(a) be for three years or less,
(b) take effect in possession,
(c) require the tenant to pay the best rent reasonably obtainable (market rent),
(d) not involve the landlord charging a fine or premium.

Question 25

What is an estate contract, and how does it function during the conveyancing process?

Answer 25

An estate contract is an equitable interest that arises during the conveyancing process between the exchange of contracts (Stage 1) and completion (Stage 2). At this stage, the buyer holds an equitable interest in the property, and the contract is enforceable in equity. For example, contracts for the sale of a freehold or leasehold

Question 26

What are the two main stages in property transactions for the creation or transfer of rights in land, and what happens at each stage?

Answer 26

The two main stages in property transactions are:
1. Stage 1: Investigation of title and the exchange of contracts. During this stage, the buyer investigates the seller’s title to ensure that the seller has the legal right to sell the land and that no issues or encumbrances affect the property.

2. Stage 2: Completion, where the legal estate is formally created or transferred to the buyer, subject to the relevant formalities being followed. At this point, the legal title is transferred, and the buyer becomes the legal owner of the property.

Question 27

Under s 2 LPMPA 1989, what are the three essential requirements for a valid contract for the creation or transfer of rights in land?

Answer 27

Under s 2 LPMPA 1989, a valid contract for the creation or transfer of rights in land must:

1. Be in writing: The contract must be in written form.
2. Incorporate all expressly agreed terms in one document (or, in the case of exchanged contracts, in each document).
3. Be signed by or on behalf of all parties involved in the transaction.

Question 28

Which transactions related to land require compliance with the s 2 LPMPA 1989 formalities to be valid, and why?

Answer 28

The following transactions must comply with s 2 LPMPA 1989 to be valid:

• Sale of a freehold or leasehold estate.
• Grant of a lease.
• Creation of an option.
• Creation of an easement.

Compliance is required because these are significant property interests, and the formalities ensure clarity and legality in the transaction.

Question 29

What happens once contracts are exchanged in a property transaction, and what is the nature of the buyer’s interest at this stage?

Answer 29

Once contracts are exchanged, the buyer acquires an equitable interest in the land, known as an estate contract. This means that while the buyer does not yet hold the legal title, they have a binding equitable right to complete the transaction and acquire the legal estate upon completion.

Question 30

How can equitable interests in land be created, and what are some common methods of creating these interests?

Answer 30

Equitable interests in land can be created in the following ways:

1. By grant of an estate or interest that can only exist in equity: For example, a restrictive covenant.
2. By grant of an estate or interest by someone who only holds an equitable interest: For instance, an equitable lease.
3. By contract to create or transfer a legal estate or interest: If the formalities for a legal estate are not met, an equitable interest may still arise.
4. By failing to use a valid deed when attempting to grant a legal estate or interest.
5. By express trust: Where the legal and beneficial interests are separated for the benefit of a third party.

Question 31

What is a restrictive covenant, and why is it an equitable interest rather than a legal interest?

Answer 31

A restrictive covenant is a promise made by one landowner (the covenantor) not to use their land in a particular way, usually for the benefit of another landowner (the covenantee).

It is an equitable interest because restrictive covenants are not listed in s 1(1) or (2) LPA 1925, meaning they cannot be legal interests. Instead, they are recognized and enforced by equity under s 1(3) LPA 1925.

Question 32

Why must certain equitable interests, such as restrictive covenants, be created by a signed written document, and what legal provision governs this?

Answer 32

Certain equitable interests, such as restrictive covenants, must be created by a signed written document because they do not have legal equivalents under s 1(1) or (2) LPA 1925 and can only exist in equity. This requirement is governed by s 53(1) LPA 1925, ensuring that equitable rights are documented and legally recognized.

Question 33

What is the equitable maxim “He who seeks equity must do so with clean hands”, and how does it apply to property transactions?

Answer 33

The maxim “He who seeks equity must do so with clean hands” means that a person who asks the court for an equitable remedy, such as specific performance, must have acted fairly and justly.

In property transactions, this maxim applies when a person seeking specific performance of a contract for land must not have breached any terms of the contract. If they have breached it, they are unlikely to succeed in claiming the equitable remedy.

Question 34

What is the doctrine established in Walsh v Lonsdale (1882), and how does it relate to equitable leases?

Answer 34

The doctrine in Walsh v Lonsdale (1882) is based on the equitable maxim, “equity regards as done that which ought to be done.” In this case, although a deed was not executed to create a legal lease, the court recognized an equitable lease based on the existence of a valid contract and the availability of specific performance.

This ensures that equity treats the arrangement as though it had been properly completed, even if the legal formalities were not followed.

Question 35

In Coatsworth v Johnson [1886–1890], why did the court refuse to recognize an equitable lease?

Answer 35

In Coatsworth v Johnson, the court refused to recognize an equitable lease because Coatsworth, the tenant, breached a term of the contract.

The court held that since Coatsworth did not have “clean hands” (i.e., he had not behaved justly or fairly under the contract), he could not rely on equity to enforce the equitable lease.

Question 36

What happens when parties attempt to grant a legal estate or interest but fail to use a valid deed, and how does the court handle such situations?

Answer 36

When parties attempt to grant a legal estate or interest but fail to use a valid deed, the court can still recognize the agreement as creating an equitable interest, provided there is a valid contract that complies with s 2 LPMPA 1989.

In such cases, if specific performance is available and the party seeking it has clean hands, equity will enforce the agreement as though the formalities had been completed

Question 37

What was the court’s decision in Parker v Taswell (1858) regarding a failed legal lease, and what did the court recognize instead?

Answer 37

In Parker v Taswell (1858), the parties intended to grant a legal lease but failed to execute the document as a valid deed. The court found that the document satisfied the requirements for a contract and that specific performance was available. As a result, the court recognized the document as creating an equitable lease, even though the legal formalities had not been completed.

Question 38

How is an express trust created in relation to land, and which legal provision governs the creation of such trusts?

Answer 38

An express trust in relation to land is created when the legal title to property is held by a trustee for the benefit of another person (the beneficiary). The trust must be created by a signed written document, as required by s 53(1) LPA 1925. Although express trusts are often created by deed, this level of formality is not strictly necessary, as long as the document is signed.

Question 39

What is the exception to the rule that trusts must be in writing, and how are implied trusts governed under the law?

Answer 39

The exception to the rule that trusts must be in writing is implied trusts, which arise automatically based on the conduct of the parties rather than formal documentation. Implied trusts do not require any writing or signatures and are governed by s 53(2) LPA 1925.

They can arise in situations such as resulting or constructive trusts, where a person’s contributions to the property give them an equitable interest.

Question 40

What are the consequences of failing to use a valid deed when transferring a legal estate or interest, and how does equity provide a remedy?

Answer 40

If a valid deed is not used when transferring a legal estate or interest, the transaction cannot create a legal interest. However, equity may still intervene to provide a remedy. If there is a valid contract that complies with s 2 LPMPA 1989 and the party seeking the remedy has “clean hands,” equity can recognize the transaction as creating an equitable interest instead of a legal one.

This ensures that the agreement can still be enforceable, even though the formal deed requirements were not met.

Question 41

What are the definitions and distinctions between different types of estates, interests, and key legal terms in land law?

Answer 41

• Estate in land: A person with an estate in land has the right to enjoy, possess, control, and dispose of it, and receive income from it.
• Interest in land: A right against land owned by another person. Example: Right of way (easement).
  Estates in Land:
• Freehold: The freehold estate lasts indefinitely. Its legal term is “fee simple absolute in possession.”
• Leasehold: An estate lasting for a fixed period, referred to as a “term of years absolute.”
  Interests in Land:
• Mortgage: Interest over land given as security for a loan. The lender (mortgagee) can enforce their security if the borrower (mortgagor) defaults.
• Restrictive covenant: A promise by one landowner not to use their land in certain ways, typically for the benefit of another landowner.
• Easement: A right to use another landowner’s property for a specific purpose, such as a right of way.
• Profits (profits à prendre): The right to go onto someone else’s land and take something that exists naturally, such as fish or timber.
• Resulting trust: Arises when a person who is not the legal owner contributes to the purchase price, acquiring a proportional interest in the property.
• Constructive trust: Arises when someone contributes to a property (e.g., through mortgage payments or improvements), even if not the legal owner.

Statutory Rights:
* Home right: A non-owning spouse’s statutory right to occupy the matrimonial home under the Family Law Act 1996. It does not create an interest in land.

• Alienation: The sale or underletting of leasehold land.
• Assignment: The transfer (or sale) of a lease from the tenant (assignor) to a purchaser (assignee).
• Beneficial interest: The interest of a beneficiary under a trust (whether express, resulting, or constructive).
• Charge: An alternative term for a mortgage.
• Conveyance: A document transferring legal ownership in unregistered freehold land.
• Dominant land: Land that benefits from a restrictive covenant or easement.
• Fine: A sum paid to the landlord for granting a lease, typically in addition to rent.
• Fixed term lease: A lease granted for a specific, fixed period.
• Lessee/tenant: The owner of a leasehold estate.
• Lessor/landlord: The person who grants a lease and retains the freehold (reversion) rights.
• Mortgagee: The lender who holds the mortgage.
• Mortgagor: The borrower who grants a mortgage over their property.
• Periodic lease: A lease that renews automatically (e.g., weekly or monthly) until terminated by notice.
• Personal property: Rights to property that are not related to land, such as goods or chattels.
• Positive covenant: An obligation requiring action or expenditure, such as maintaining a boundary.
• Puisne mortgage: A legal mortgage over unregistered land not protected by the title deeds.
• Real property: Property rights relating to land, including estates and interests like mortgages and easements.
• Servient land: Land burdened by a restrictive covenant or easement.
• Tenancy: The leasehold estate for a fixed period, called “term of years absolute.”
• Transfer: A document that transfers legal ownership in registered land.

Question 42

What are the five steps to analyze a fact pattern in land law to determine if an interest is legal, equitable, or statutory?

Answer 42

1. Identify the interest:
   * Exclusive use for a fixed period = Lease.
   * Right to use another’s land without exclusive possession = Easement.
   * Obligation not to do something on the land = Restrictive covenant.
2. Determine if the interest is capable of being legal or is equitable by nature:

• Legal interests appear in s 1(1) and (2) LPA 1925. If not listed, the interest is equitable (s 1(3) LPA 1925).

3. Check the formalities:

• A deed is required for legal interests (s 52(1) LPA 1925), but exceptions may apply (e.g., short-term lease). Ensure compliance with formalities for equitable interests unless it’s an implied trust.

4. No deed but interest is capable of being legal:

• Equity may intervene if there is a valid contract, compliance with s 2 LPMPA 1989, and specific performance is available. Equity applies only with “clean hands.”

5. Determine if it is legal, equitable, or statutory:

• If the rules are not followed and equity does not intervene, there may be no valid interest in land, reducing the right to a mere licence.