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

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

Answer 3

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 4

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

Answer 4

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 5

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

Answer 5

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 6

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

Answer 6

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 7

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

Answer 7

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.

the court confirmed that an item may still constitute a fixture even when not physically attached to the property, or where that attachment could be easily removed.

Question 8

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

Answer 8

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 9

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

Answer 9

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 periodic sum of money payable by the owner of freehold land to a third party who does not have any ownership or possession rights over the land.
   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 10

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

Answer 10

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 by deed and 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 11

Explain the concept of “rentcharges” and the conditions under which they can be legal and the conditions for which they can exist in equity

Answer 11

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

For a rentcharge to be a legal interest, it must:
1. Be created by deed (per Section 52 LPA 1925); and
2. Be either perpetual or for a fixed term of years absolute (per Section 1(2)(b) LPA 1925).
* If either of these conditions is not met: if it is for an uncertain term or conditional on something other than time The rentcharge will not be a legal interest.

*	It may, however, exist as an equitable interest, provided the agreement complies with Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989.

Question 12

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

Answer 12

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 13

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

Answer 13

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 14

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

Answer 14

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 15

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

Answer 15

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.

They differ from legal interests as legal interests are Enforceable against the world (in rem) and take precedence over equitable interests.

Equitable interests can be created when:

• The formalities for a legal interest are not satisfied but there is still clear evidence of an intent to create an interest.
  • They arise automatically in equity, e.g., through a resulting trust, constructive trust, or proprietary estoppel.
  • Examples of creation:
  • Express Trusts: Formal writing is required under Section 53(1)(b) LPA 1925.
  • Disposition of Equitable Interests: Requires writing under Section 53(1)(c) LPA 1925.
  • Estate Contracts: Governed by Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989, requiring:
  • Writing,
  • Signature by both parties,
  • All terms in one document (or referenced documents).
  Note that an estate contract is transfering land it requires the formalites of section 2 LPMPA.May not bind a bona fide purchaser for value without notice (the doctrine of notice).

Question 16

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

Answer 16

An express trust is a legal arrangement where the legal title to property (such as land) is held by normaly 2 persons (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:
1. Certainty of intention: Clear intention to create a trust.

2. Certainty of subject matter: The property and the interest must be clearly identified.
3. Certainty of objects: The beneficiaries must be identifiable.

Question 17

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

Answer 17

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 18

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

Answer 18

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 19

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

Answer 19

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 20

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

Answer 20

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 21

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

Answer 21

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 22

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 22

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 23

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

Answer 23

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 24

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

Answer 24

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 25

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 25

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 26

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 26

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 27

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

Answer 27

Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 (LP(MP)A) governs the formalities for creating a valid contract for the sale or other disposition of an interest in land. Its key provisions are as follows: 1. Requirements for a Valid Contract: * The contract must be in writing. * The contract must incorporate all the terms that the parties have expressly agreed upon, either: * In one document, or * In two or more documents that reference each other. * The contract must be signed by or on behalf of each party. The following transactions must comply with s 2 LPMPA 1989 to be valid: * Sale of a freehold or leasehold estate. * Grant of a lease-provided it is not a Short leases (for three years or less, as governed by section 54(2) of the Law of Property Act 1925). these can be created orally by way of a parol lease. * Creation of an option such as an estate contract- a contractual right granted to a person (the option holder) to purchase or acquire an interest in land at a later date, within a specified period, and under agreed terms. It does not impose an obligation on the option holder to purchase the land, but it does create an obligation on the landowner (the grantor) to sell the land if the option is exercised. * equitable easements, If the required formalities for creating a legal easement (e.g., using a deed) are not satisfied, but there is a valid written agreement to grant an easement, the easement will be equitable provided it complies with section 2. Compliance is required because these are significant property interests, and the formalities ensure clarity and legality in the transaction.

Question 28

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

Answer 28

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 29

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

Answer 29

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. If a contract for the sale or disposition of land does not comply with Section 2 (e.g., it’s oral, unsigned, or incomplete), it is generally void and cannot create an enforceable estate contract or equitable interest. However, in certain limited circumstances an equitable interest may still arise, even if Section 2 of the Law of Property (Miscellaneous Provisions) Act 1989 is not complied with. This typically happens through doctrines like proprietary estoppel, resulting trusts, or constructive trusts, which operate outside the formalities required under Section 2. 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 30

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

Answer 30

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 31

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

Answer 31

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 32

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

Answer 32

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 33

What does " equity regards as done that which ought to be done" mean and how does it relate to equitable leases?

Answer 33

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 34

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

Answer 34

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 35

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 35

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 36

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

Answer 36

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 37

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

Answer 37

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 38

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

Answer 38

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 39

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 39

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 40

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

Answer 40

* 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 41

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

Answer 41

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, which are created through conduct. The formalites for equitable interests are: * Writing is required. * The document must be signed by the person creating, declaring, or disposing of the interest (or their authorised agent). * No additional requirements like incorporation of all terms. 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.