Nature of Land Flashcards
What are the two key pieces of legislation regarding land law?
-Law of Property Act 1925 (LPA)
-Land Registration Act 2002 (LRA)
What is a proprietary right in land and provide an example?
Can be enforced by an action in rem, meaning that use or possession of the land can be recovered. The holder of the right does not have to settle for damages if they are deprived of the right.
Capable of being enforced against a third party.
Example would be an easement.
What is a personal right in land and provide an example?
Can only be enforced by a personal action for damages if the right is breached. Use of the right cannot be recovered.
Personal rights will only bind the original parties to the right, there can be no recourse against a third party.
Example is a licence.
What is the fixed list of proprietary rights?
-freehold estate
-leasehold estate
-easement
-mortgage
-restrictive covenant
-estate contract
When a person owns a piece of land do they own the physical land itself?
No, they do not actually own the physical land itself but a right to possess the land. This is a very powerful proprietary right.
What are the two estates in land?
-Freehold estate
-Leasehold estate
Describe the nature of a freehold estate.
Fee simple absolute in possession (LPA 1925, s1(1)(a)), more commonly known as the freehold estate.
It is a right of possession which lasts until the owner for the time being dies without heirs, meaning without any blood relatives and without having disposed of it by will.
Describe the nature of a leasehold estate.
Where a freehold owner grants a lesser estate, which is of a certain duration, the estate granted is a term of years absolute (LPA 1925, s1(1)(b) LPA) which is known as the leasehold estate/lease.
The leaseholder, known as the tenant, may grant a lease of a lesser duration out of their own leasehold, while still retaining the original lease. This is known as a sub-lease.
What is the freehold and leasehold reversion?
The residue of the estate after the granting of a lease is known as the freehold reversion.
If the grantor holds a leasehold estate, the residue is known as the leasehold reversion.
What is a commonhold?
A type of freehold which is an alternative to a long lease designed to meet the needs of owners of flats/apartments and other properties such as retirement homes.
What does an interest in land permit the interest holder to do?
It gives the interest holder the right to do something on the land, or restrict what can be done on the land.
What are the legal interests recognised under LPA 1925, S1?
-Mortgages
-Easements granted for a term equivalent to a freehold or leasehold estate
-Rights of entry/forfeiture clauses
What are the equitable interests recognised under LPA 1925, S1?
-Restrictive covenants
-Estate contract
-Interest in a trust of land
What is the difference between legal and equitable interests?
A person who holds a legal interest will have a wider range of remedies available if the interest is infringed. They are also automatically entitled to damages as of right.
In contrast, a person who holds an equitable interest is not entitled to damages as of right and any remedy granted is at the discretion of the Court.
At what point during the transfer of a freehold estate do the parties become contractually committed to the deal?
Exchange of contracts. The parties can walk away at any time before this point without incurring any legal liability.
What are the requirements of a valid land contract under LP(MP)A 1989, S2?
- The contract must be in writing (cannot be oral)
- It must contain all the expressly agreed terms (either set out in document or referring to some other document)
- It must be signed by both parties (either on one document or two identical documents)
What does the variation of a land contract need to comply with?
Whenever a material term in a land contract is varied, that variation must also comply with LP(MP)A 1989 s2.
What is the effect of a binding land contract?
To pass an equitable interest in the land to the buyer, called an estate contract.
When will the Courts recognise an equitable interest in the land in the event of a failed legal interest?
-There is a document that complies with LP(MP)A 1989, s2; and
-The remedy of specific performance is available
For example, a contract to create a legal lease will create an equitable lease.
What are the remedies for breach of a land contract?
-Damages
-Specific performance
-Injunction
Specific performance and injunction are equitable remedies meaning they are not available as of right and equitable principles will apply.