Nature Of Land, Co-ownership And Trusts Flashcards
What is an estate in land?
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.
What is an interest in land?
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.
Define freehold.
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.
What is leasehold?
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.
How does a freehold estate owner differ from a leasehold estate owner regarding leasing?
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.
What is a mortgage?
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.
True or False: A borrower can keep the property free of obligations once a mortgage is in place.
False.
The lender can enforce its security if the borrower fails to repay the loan.
What is a restrictive covenant?
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.
What is an easement?
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.
What are profits in land law?
‘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.
What is a resulting trust?
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.
Constructive trust
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.
What is an estate contract?
A contract to convey or create a legal estate including an option to purchase.
Estate contracts are essential in real estate transactions.
What are the two stages in the sale and purchase of land?
- 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.
What occurs in the first stage of the land sale process?
The seller and buyer enter into a contract, and the buyer holds an equitable interest.
Contracts are exchanged during this stage.
What happens in the second stage of the land sale process?
The seller transfers the property to the buyer, completing the sale and transferring the legal estate.
This stage finalizes the transaction.
What does the buyer own during the interval between the two stages?
An estate contract, which is an equitable interest.
This interest grants certain rights to the buyer before legal ownership is transferred.
True or False: The estate contract provides the buyer with legal ownership immediately upon signing.
False
The legal ownership is transferred only in the second stage.
What is home right?
Statutory right for a non-owning spouse or civil partner to occupy the matrimonial home under the Family Law Act 1996.
Does home right create an interest in land?
No.
What is alienation in the context of leasehold land?
Sale or underletting of leasehold land.
Define assignment in lease terms.
Transfer (sale) of a lease between the tenant/lessee (assignor) and a purchaser (assignee).
What is a beneficial interest?
Interest of a beneficiary under a trust (express, resulting, or constructive).
What is a charge in property law?
Alternative word for a mortgage, also expressed as a charge by way of legal mortgage.
What is a conveyance?
Document transferring legal ownership in freehold unregistered land.
What is dominant land?
Land that benefits from a restrictive covenant or easement.
What is a fine in the context of leasing?
Sum of money paid to the landlord in return for granting a lease. Usually paid in addition to rent.
Also known as a premium.
What is a fixed term lease?
May be for any period of time as long as the maximum period is fixed.
Who is the lessee or tenant?
Owner of the leasehold estate.
Who is the lessor or landlord?
Person who grants the leasehold estate and retains the right to receive rent and sell the freehold.
Retained rights are known as the reversion.
Who is a mortgagee?
Lender who owns the mortgage interest in the land.
Who is the mortgagor?
Borrower, who owns the legal estate in land and grants the mortgage to the mortgagee as security for the loan.
What is a periodic lease?
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.
Define personal property.
Rights in property except for land (goods and chattels).
What is a positive covenant?
An obligation which requires effort or expenditure in order to perform the obligation.
What is a puisne mortgage?
Legal mortgage over unregistered land which is not protected by the deposit of title deeds.
What does real property encompass?
All property rights relating to land (estates and interests, i.e., mortgages, easements, etc.).
What is servient land?
Land which is subject to or burdened by the covenant or easement. The easements are exercised over this land.
Fill in the blank: A _______ is a lease for 1 period that extends automatically until notice to quit is given.
periodic lease
True or False: Personal property includes rights related to land.
False
Fill in the blank: A positive covenant requires _______ or expenditure to perform the obligation.
effort
True or False: A puisne mortgage is protected by the deposit of title deeds.
False
Fill in the blank: Real property includes all property rights relating to _______.
land
What is the role of servient land in relation to easements?
Servient land is bound by the restrictive covenant and easements are exercised over this land.
What is a tenancy?
A leasehold estate which lasts for a fixed period of time, ‘terms of years absolute’
It is also described as a lease or leasehold.
What is the significance of the date 1189 in legal terms?
It marks the date of legal memory, referred to as Time Immemorial
This date is important for establishing certain legal rights and claims.
What is a transfer in the context of registered land?
A document transferring legal ownership
This is crucial for the conveyance of property rights.
Define freehold.
Estate in fee simple absolute in possession
This indicates a type of ownership that is not limited by time.
What does ‘fee’ mean in property law?
An estate that is capable of being inherited
This indicates the estate can be passed down to heirs.
Explain the term ‘simple’ in relation to estates.
It means the estate can pass to any class of heir
Indicates that the estate is not restricted to specific heirs.
What does ‘absolute’ signify in property terms?
The estate is not determinable or conditional on any event
This means the estate remains in effect indefinitely unless transferred.
What does ‘in possession’ refer to?
Immediate right to possession
This contrasts with entitlement to possession at some time in the future.
What are the requirements for a deed when creating or transferring a legal estate?
(A) in writing
(B) signed
(C) witnessed
(D) delivered
When will a deed not be required when creating or transferring a legal estate?
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.
What are the 2 forms of co-ownership and how should the legal estate be held?
- Joint tenancy
- 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.
What happens on death of a joint tenant or tenant in common?
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.
