Nature Of Land

Question 1

What is conveyancing?

Answer 1

Transfer of a freehold or a leasehold estate

Question 2

What is a deed? (What are the 3 requirements that make a doc a deed?)

Answer 2

Parties must enter into a deed (formal doc)
- doc must be clear it is intended to be a deed
- deed must be validly executed
- deed must be delivered (dating the doc)

TR1 form

Question 3

What are the legal formalities to legally transfer title?

Answer 3

Parties create a deed
Deed must be registered at the land registry

Question 4

What are the formalities that are required for a valid land contract? (3 formalities)

Answer 4

1. In writing
2. Contains all terms (contain all expressly agreed terms)
3. Signed by both parties

Question 5

When does a person become the legal owner of land?

Answer 5

At registration

Question 6

Can a land contract be varied?

Answer 6

Yes it can, but it must also comply with LP(MP)A 1898 s2

Question 7

What is an estate contract?

Answer 7

This is the effect of a binding land contract which passes an equitable interest in the land to the buyer which is called an estate contract

(Proprietary effect of the contract)

Question 8

What is an agreement for lease/contract for lease?

Answer 8

This is prior to the granting of a lease, the landlord and tenant may enter into a contract to commit themselves to enter into the lease in the future, eg, where immediate occupation is not possible but parties want the certainty that a lease will be entered into.

Question 9

What is an option agreement?

Answer 9

This is an estate contract that gives another party a right, during the option period, to serve notice that they wish to buy the land.

(If notice is served during the option period, then the seller must sell the land to the buyer. However, buyer is not obliged to exercise the option)

Question 10

What happens if a land contract is deliberately or it may be that parties are trying to create a valid deed but fail?

Answer 10

The courts will then recognise an equitable interest in the land providing that:
-there is a doc that complies with LP(MP)A 1898, s2; and
- the remedy of specific performance is available

Question 11

What is the proprietary effect of the land contract? (An estate contract)

Answer 11

It has a proprietary right in land and it is capable of binding and being specifically enforceable against third parties (eg, subsequent owners of the freehold estate)
- must be protected to be binding on third party purchasers

Question 12

What are the 3 remedies available for breach of a land contract?

Answer 12

• damages
• specific performance (court order compelling defaulting party to carry out positive contractual obligations)
• injunction (prohibitory injunction = restraining somebody from doing something)

Specific performance and injunctions are equitable meaning they are down to discretion of the court

Question 13

What is the difference in the requirement for signatures in a deed compared to a land contract?

Answer 13

In a deed need both parties signatures to be witnessed whereas in land contract need both parties signatures but don’t need them to be witnessed

Question 14

What does registered land mean and what does unregistered land mean?

Answer 14

Registered land means the land has been registered at the land registry
Unregistered land means it has not been registered and the title information is contained in various old paper title deeds

Question 15

What are the 3 principles that the system of registered land has?

Answer 15

1. The mirror principle
2. The curtain principle
3. The insurance principle

Question 16

What is the mirror principle?

Answer 16

The register should reflect all matters that the property has the benefit of and all the matters that the property is subject to.

Question 17

What is an overriding interest?

Answer 17

An interest that doesn’t appear on the register but will still be binding on the owner of the legal estate and any buyer if it.

Question 18

What is the curtain principle?

Answer 18

The register records the ownership of the legal estate in the property, the legal title.

Question 19

What is the insurance principle?

Answer 19

The accuracy of the register is guaranteed by the state.
If there is an error with the register, it will be corrected and anyone who has suffered any loss will be compensated.

Question 20

What does absolute title mean? (Class of title)

Answer 20

Best form of interest - land is only bound by interests that are registered on the title or overriding interests

Question 21

What does qualified title mean? (Class of title)

Answer 21

Title has some defect which it will specify on the register

Question 22

What is good leasehold title mean? (Class of title)

Answer 22

Land registry is satisfied as to the title of the leasehold and not the freehold.

Question 23

What does possessory title mean? (Class of title)

Answer 23

Potentially for people who have a claim under adverse possession or squatters rights

Question 24

What is the statutory definition of land?

Answer 24

The surface of the physical land, building on the land, fixtures and the benefit of any easements
(Space below the ground approx 300m)
Lower airspace above the ground

Question 25

How much airspace is involved in a persons land?

Answer 25

An owners right in the airspace above his land are restricted to such heigh as is necessary for the ordinary use and enjoyment of the land and the structures upon it.
(Lower airspace)

Question 26

If a person finds gold or silver under their land - does this belong to them?

Answer 26

No this is an exception to the rule as a landowner is not entitled to all minerals under the land and any mines of gold or silver belong to the crown

Question 27

Are fixtures part of the land?

Answer 27

Yes they are - items fixed to the land form part of the land.

Question 28

What is the 2 part legal test for determining if an object is a fixture or chattel?

Answer 28

1. The degree of annexation test (more firmly the object is fixed to the land the more likely it is classified as a fixture)
2. Purpose of annexation test (considers why the object is attached to the land - is it for more convenient use or enjoyment if the chattel or enhance the land = this takes priority over the annexation test)