Paper 1 Lesson 2: Basic Land Law Concepts

Question 1

What is a legal interest/legal title on a property?

Answer 1

This means that the person owns the property in law. The legal owner’s name is registered on a certificate of ownership, or a register of that particular property. (Name is in the property)

Question 2

What is an equitable interest on a property?

Answer 2

equitable owner has a mere beneficiary interest in the property, in addition to other rights. (Name may not be in the property, but has interest in it).

Question 3

What is a bona fide purchaser?

Answer 3

This is someone who purchased the property “in good faith”, which means they purchased the property without any reason to suspect that there will be any irregularities in the transaction.

Question 4

What are the legal rights to land?

[5 pointers]

Answer 4

[PEARP]
1. Rights of possession/enjoyment
2. Right of exclusion (to exclude others from enjoyment)
3. Right of alienation/right to assign/right of disposition (e.g transfer either by gift or sale)
4. Right to rent out his property.
5. Right to pledge his property as collateral to bank for a mortage.

Question 5

What is proprietary/legal right in land?

[Opposite of Personal Right]

Answer 5

Holder of this right will have the rights to enforce his right on the property against a 3rd person. It is assignable.

E.g. Sell property > pass your proprietary rights to the new owner

Question 6

What is personal rights in land?

Answer 6

Enforceable only against a person who grants it. Cannot be passed to a 3rd party.

E.g. You give permission to your neighbour to enter your ppty every fri. This is a personal right and it is not passed on to the next owner.

Question 7

Under Land Titles Act, how much subterranean space does the land owner owns?

Answer 7

Up to 30m.

Question 8

Land comprises of ________ and _________ hereditaments.

Answer 8

Corporeal, Incorporeal

Question 9

What is Corporeal Hereditaments?

Answer 9

Objects that can be physically possessed. Can be seen and touched.

Tangible objects:
- Buildings
- Trees
- Fixtures
- Soil
- Minerals

(Real property = immovable property)

Question 10

What is Incorporeal Hereditaments?

Answer 10

Things that do not confer physical possession over land. Neither seen nor handled.

Easements: a right to cross/use someone else’s land for a specific purpose.

Question 11

State the 2 definitions of “Land”

Answer 11

1. it is the surface of any defined parcel of earth. all substances under and the column of airspace above.
2. Any defined parcel of airspace or subterranean space held apart from the surface of earth.

Question 12

What is the definition of “land” by the “Common Law”?

Answer 12

It regards land as the surface of the earth plus buildings, minerals, trees, fixtures, subterranean and airspace, and other corporeal and incorporeal hereditaments.

Question 13

What are the 2 tests to distinguish fixtures and chattels?

Answer 13

1. Degree of annexation
2. Purpose of annexation

Question 14

How does the Degree of annexation work?

Answer 14

It is to determined how the object is attached to the property.

[Is it permanently annexed to the land? E.g. Floor tiles, window grills, toilet bowls etc.]

Question 15

What is Purpose of annexation?

Answer 15

It is a test to determine whether an object is a fixture by determining the purpose of fixing this item.

Fixture is fixed for better enjoyment with the land/or for personal enjoyment.

Question 16

What is the purpose of the Degree of annexation and Purpose of annexation test?

Answer 16

These tests are applicable when there is no agreement between the parties on the fixtures, where these 2 tests will determine.

Question 17

What is a fixture?

Answer 17

1. A fixture is fixed permanently to the land/property, where it becomes part of the property.
2. Removing the fixture would cause damage to the land/property.
3. Fixtures must be sold together with the property.

Question 18

What is a Chattel?

Answer 18

1. Things that can be easily removed from the land/property.
2. Fixed for personal enjoyment.
3. Not sold together with the land/property.
4. Not a real property.

Question 19

What is a trade fixture?

Answer 19

items attached to the building for the purpose of business.

May not be sold together with the property. e.g. printing machines.

Trade fixtures are not fixture. They may be called Chattel at times (Tenant fixtures).

Question 20

How many survey districts are there in Singapore, and what are they known as?

Answer 20

64. Known as Mukim (MK) or Town Subdivision (TS).

Question 21

How many Mukim and Town Subdivision are there in Singapore?

Answer 21

34 Mukim / 30 Town Subdivision.

Question 22

How to differentiate between a Land Lot (non-strata) and Strata Lot number?

Answer 22

Strata Lot number would have a “U” in it.

E.g.
Land Lot: TS2-543X

Strata Lot: TS2-U543X

Question 23

What is the difference between a Proprietor and Subsidiary Proprietor?

Answer 23

A proprietor is the owner who owns the land lot and holds a CERTIFICATE OF TITLE (CT).

A subsidiary proprietor owns the air space and has a share of the common area/land. Owners will own a SUBSIDIARY STRATA CERTIFICATE OF TITLE (SSCT).

Question 24

What map can Lot base numbers be found on?

Answer 24

Cadastral Map.

Question 25

Airspace lot numbers start with the ______ series.

Answer 25

70,000 (in the air, e.g. Tampines MRT station).

Question 26

Subterranean lot numbers start with the ______ series.

Answer 26

80,000 (Basement, e.g. Orchard MRT station).

Question 27

What are Accessory lots?

Answer 27

E.g A carpark lot. (Only some) It is attached to a Strata Lot, and is not part of the common area and does not have share value. Defined by a "A" in the lot number.

Question 28

What are the characteristics of owners having a Land Title - Certificate of Title (CT)? | [4 pointers]

Answer 28

1. Have their own boundary. 2. No sharing of common area/facilities. 3. Not subdivided into individual lots. 4. Land titles Act.

Question 29

What are the characteristics of a property with a Strata Title - Subsidiary Strata Certificate of Title (SSCT)?

Answer 29

1. Share land/common area/facilities with other owners. (condo) 2. Subdivided into individual lots. 3. Land Title Strata Act.

Question 30

What titles are HDB flats issued?

Answer 30

Lease Titles, which are done in the form of a Deed. E.g. A legal contract signed between HDB and lessees.

Question 31

When is a Subsidiary Certificate of Titles (SCTs) issued for HDB owners?

Answer 31

It is issued when you have fully paid your property. SCTs are issued to replace the HDB leases.

Question 32

What does share value in condos determine?

Answer 32

It determines the - Voting right of owners - Share of common area - Amount of maintenance fee per unit

Question 33

Share values are issued by _______ under _____________ according to strata area.

Answer 33

Commissioner of Buildings (COB), Building & Construction Authority (BCA).

Question 34

Where is share value recorded?

Answer 34

It is recorded in the Strata Roll and kept by MCST.

Question 35

What is the Share Value calculation?

Answer 35

For Residential projects built AFTER April 2005. Strata area / Share Value (SV) : Less than or equals to 50sqm / 5 51 - 100sqm / 6 101 - 150sqm / 7 151 - 200sqm / 8 Thereafter, an additional 1 SV for every 50sqm.

Question 36

What does the maintenance fee consist of, and what are they used for?

Answer 36

Management and sinking fund. Management fund = to pay for daily maintenance. Sinking fund = used for major upgrading works.

Question 37

When are NEW Certificates of Titles issued?

Answer 37

1. When land is subdivided. e.g. developer subdivides his land into 4 plots to build 4 terrace houses. 2. When land is amalgamated. e.g. owners of 2 semi-detach amalgamate their land to build 1 bungalow. 3. When land is owned by tenants in common. Each tenant can request a Certificate of Title for their own respective share.

Question 38

What are remnant lands?

Answer 38

Remnant lands are small/irregular-shaped plots of land left over after development. They are incapable of independent development. Capable of enhancing the economic value and use of adjoining land.

Question 39

What is the difference between Estate in fee simple and Estate in Perpetuity?

Answer 39

Estate of Perpetuity is subject to the conditions stated in the State Lands Act.

Question 40

When is the Estate of Fee Simple granted?

Answer 40

1. Where the owner of land wishes to surrender his fee simple title to the State in exchange for re-grant of 1 or more new titles for the development, subdivision or other purpose. 2. When a state reserve for road adjoins land held in fee simple, and the state reserve is no longer needed by the State.

Question 41

Define Estate in Fee Simple.

Answer 41

It is absolutely freehold estate where there is no need to pay land rent except statutory charge like property tax.

Question 42

Define Estate in Perpetuity.

Answer 42

Also known as Statutory Land Grant (SLG). It is freehold but subject to terms under the State lands Act. Owner has to maintain boundaries and pay land rent (also called quit rent or ground rent) - Paying of land rent has been waived since Jan 1992. E.g. 1. Right of the government to have access to land - taking minerals, oil, earth, clay, gravel, sand, stone and other materials without any compensation. 2. Rights of way by owners of adjoining land which do not otherwise have access to public road. 3. Right to have free access at all times to land to repair pipes, sewers etc.

Question 43

What is a life estate?

Answer 43

An estate lasting for the period of a person's life, who is called a life tenant. This is created by express agreement between 2 parties.

Question 44

The original owner who granted a life estate to the life tenant has a _________ and _________ interest on the property.

Answer 44

Reversionary, Future.

Question 45

What is a remainder interest? (Different from reversionary interest)

Answer 45

Remainder interest = future interest (Stated in a Will) E.g. A owns a fee simple property, and leases 99 years leasehold/life estate to B. A assigns future interest to C by Will or intestate. Hence, C will have a remainder interest on the property as well as future interest.

Question 46

Define "Alienate".

Answer 46

To transfer or convey, as title, property or other rights to another. E.g. Govt alienate state land via open tender (sale).

Question 47

Define "Convey". | [Conveyance]

Answer 47

To transfer, pass the title to. E.g. Ben conveys the title to Mary (Gift / Sale)

Question 48

Define "Assign" in property.

Answer 48

To transfer rights / assign interest to someone else (NOT transfer of ppty ownership) E.g. A assigns all interests to Mary (assign tenancy agreement).