Nature Of Land, Co-ownership And Trusts

Question 1

What is an estate in land?

Answer 1

The person has the right to enjoy, possess, control and dispose of it and receive any income produced from the land.

This refers to the full ownership rights that an individual holds over a piece of land.

Question 2

What is an interest in land?

Answer 2

The person has a right against land owned by another person, such as the right of way.

This indicates a legal claim or right that one individual has over the land owned by another.

Question 3

Define freehold.

Answer 3

Estate which lasts indefinitely. Its full legal name is ‘free simple absolute in possession’.

Freehold estates provide the owner with the most rights and control over the property.

Question 4

What is leasehold?

Answer 4

Estate which lasts for a fixed period. ‘Terms of years absolute’.

Leasehold estates are typically associated with rental agreements where the tenant has the right to use the property for a specified term.

Question 5

How does a freehold estate owner differ from a leasehold estate owner regarding leasing?

Answer 5

A freehold estate owner can grant a lease for any duration; a leasehold estate owner can only grant a sub-lease for a shorter duration than their own lease.

This distinction affects the rights of property owners and tenants in rental situations.

Question 6

What is a mortgage?

Answer 6

An interest over land granted by the borrower to the lender as security for a loan.

Mortgages are a common way for individuals to finance the purchase of real estate, with the property serving as collateral.

Question 7

True or False: A borrower can keep the property free of obligations once a mortgage is in place.

Answer 7

False.

The lender can enforce its security if the borrower fails to repay the loan.

Question 8

What is a restrictive covenant?

Answer 8

A promise by one landowner in favour of another landowner that they will not do certain things on the land e.g. not use the land for any use other than a private home.

Question 9

What is an easement?

Answer 9

A right for one landowner to make use of another parcel of land for the benefit of their own land e.g. a right of way.

Question 10

What are profits in land law?

Answer 10

‘Profits a prendre’ - a right to go onto somebody else’s land and remove from the land something which exists naturally e.g. a right to catch and take fish or a right to graze animals.

Question 11

What is a resulting trust?

Answer 11

A person who is not the legal owner, contributes directly to the purchase price of the property. The person acquires an interest proportionate to their contribution.

Question 12

Constructive trust

Answer 12

An interest in land is created when a person who is not the legal owner of the property, makes a contribution to the property other than a direct financial contribution at the time of the purchase.
This can include contributing to the mortgage payments or making substantial improvements to the property.

Question 13

What is an estate contract?

Answer 13

A contract to convey or create a legal estate including an option to purchase.

Estate contracts are essential in real estate transactions.

Question 14

What are the two stages in the sale and purchase of land?

Answer 14

• First stage: Agreement between seller and buyer to sell the estate in land.
• Second stage: Transfer of property from seller to buyer.

Each stage has distinct legal implications.

Question 15

What occurs in the first stage of the land sale process?

Answer 15

The seller and buyer enter into a contract, and the buyer holds an equitable interest.

Contracts are exchanged during this stage.

Question 16

What happens in the second stage of the land sale process?

Answer 16

The seller transfers the property to the buyer, completing the sale and transferring the legal estate.

This stage finalizes the transaction.

Question 17

What does the buyer own during the interval between the two stages?

Answer 17

An estate contract, which is an equitable interest.

This interest grants certain rights to the buyer before legal ownership is transferred.

Question 18

True or False: The estate contract provides the buyer with legal ownership immediately upon signing.

Answer 18

False

The legal ownership is transferred only in the second stage.

Question 19

What is home right?

Answer 19

Statutory right for a non-owning spouse or civil partner to occupy the matrimonial home under the Family Law Act 1996.

Question 20

Does home right create an interest in land?

Answer 20

No.

Question 21

What is alienation in the context of leasehold land?

Answer 21

Sale or underletting of leasehold land.

Question 22

Define assignment in lease terms.

Answer 22

Transfer (sale) of a lease between the tenant/lessee (assignor) and a purchaser (assignee).

Question 23

What is a beneficial interest?

Answer 23

Interest of a beneficiary under a trust (express, resulting, or constructive).

Question 24

What is a charge in property law?

Answer 24

Alternative word for a mortgage, also expressed as a charge by way of legal mortgage.

Question 25

What is a conveyance?

Answer 25

Document transferring legal ownership in freehold unregistered land.

Question 26

What is dominant land?

Answer 26

Land that benefits from a restrictive covenant or easement.

Question 27

What is a fine in the context of leasing?

Answer 27

Sum of money paid to the landlord in return for granting a lease. Usually paid in addition to rent.

Also known as a premium.

Question 28

What is a fixed term lease?

Answer 28

May be for any period of time as long as the maximum period is fixed.

Question 29

Who is the lessee or tenant?

Answer 29

Owner of the leasehold estate.

Question 30

Who is the lessor or landlord?

Answer 30

Person who grants the leasehold estate and retains the right to receive rent and sell the freehold.

Retained rights are known as the reversion.

Question 31

Who is a mortgagee?

Answer 31

Lender who owns the mortgage interest in the land.

Question 32

Who is the mortgagor?

Answer 32

Borrower, who owns the legal estate in land and grants the mortgage to the mortgagee as security for the loan.

Question 33

What is a periodic lease?

Answer 33

A lease for 1 period, which extends automatically until either the landlord or tenant give notice to quit. The period is usually a week, month, or year.

Question 34

Define personal property.

Answer 34

Rights in property except for land (goods and chattels).

Question 35

What is a positive covenant?

Answer 35

An obligation which requires effort or expenditure in order to perform the obligation.

Question 36

What is a puisne mortgage?

Answer 36

Legal mortgage over unregistered land which is not protected by the deposit of title deeds.

Question 37

What does real property encompass?

Answer 37

All property rights relating to land (estates and interests, i.e., mortgages, easements, etc.).

Question 38

What is servient land?

Answer 38

Land which is subject to or burdened by the covenant or easement. The easements are exercised over this land.

Question 39

Fill in the blank: A _______ is a lease for 1 period that extends automatically until notice to quit is given.

Answer 39

periodic lease

Question 40

True or False: Personal property includes rights related to land.

Answer 40

False

Question 41

Fill in the blank: A positive covenant requires _______ or expenditure to perform the obligation.

Answer 41

effort

Question 42

True or False: A puisne mortgage is protected by the deposit of title deeds.

Answer 42

False

Question 43

Fill in the blank: Real property includes all property rights relating to _______.

Answer 43

land

Question 44

What is the role of servient land in relation to easements?

Answer 44

Servient land is bound by the restrictive covenant and easements are exercised over this land.

Question 45

What is a tenancy?

Answer 45

A leasehold estate which lasts for a fixed period of time, ‘terms of years absolute’

It is also described as a lease or leasehold.

Question 46

What is the significance of the date 1189 in legal terms?

Answer 46

It marks the date of legal memory, referred to as Time Immemorial

This date is important for establishing certain legal rights and claims.

Question 47

What is a transfer in the context of registered land?

Answer 47

A document transferring legal ownership

This is crucial for the conveyance of property rights.

Question 48

Define freehold.

Answer 48

Estate in fee simple absolute in possession

This indicates a type of ownership that is not limited by time.

Question 49

What does ‘fee’ mean in property law?

Answer 49

An estate that is capable of being inherited

This indicates the estate can be passed down to heirs.

Question 50

Explain the term ‘simple’ in relation to estates.

Answer 50

It means the estate can pass to any class of heir

Indicates that the estate is not restricted to specific heirs.

Question 51

What does ‘absolute’ signify in property terms?

Answer 51

The estate is not determinable or conditional on any event

This means the estate remains in effect indefinitely unless transferred.

Question 52

What does ‘in possession’ refer to?

Answer 52

Immediate right to possession

This contrasts with entitlement to possession at some time in the future.

Question 53

What are the requirements for a deed when creating or transferring a legal estate?

Answer 53

(A) in writing

(B) signed

(C) witnessed

(D) delivered

Question 54

When will a deed not be required when creating or transferring a legal estate?

Answer 54

Certain short term leases

(A) lease must be for 3 years or less.

(B) lease must take effect in possession.

(C) tenant must pay market rent.

(D) landlord must not charge a fine or premium.

Question 55

What are the 2 forms of co-ownership and how should the legal estate be held?

Answer 55

1. Joint tenancy
2. Tenancy in common

Legal estate must be held as a joint tenancy.
Beneficiaries can hold their equitable interests either as joint tenants or tenants in common.

Question 56

What happens on death of a joint tenant or tenant in common?

Answer 56

Joint tenant - their interests passes automatically to the surviving tenant.

Tenant in common - their share in the property will pass to their estate in accordance with the terms of their will.