SG - Estates and Interests in Land

Question 1

Legal estates

Answer 1

Freehold & Leasehold; estate > interest (right in land)

Question 2

Legal interests

Answer 2

1) Easement
2) Mortgage
3) Rentcharge
4) Miscancellaneous statutory charges
5) Rights of entry

Question 3

Equitable interests

Answer 3

All other, i.e.

1) Equitable easements and mortgages
2) Restrictive covenant
3) Estate contracts
4) Beneficial interests under trust

Question 4

Protection in registered land

Answer 4

1) Registrable disposition (must be registered in order to take effect): leases of 7yr, legal easements, legal mortgages, rent charges, rights of entry
2) 3P interests (protected by Notice or Restriction on the Land Register): estate contracts, restrictive covenants, interests under trust [but can be overreached by payment to 2 trustees]
3) Unregistered/overriding interests (do not need to be registered to be protected): leases

Question 5

Protection in unregistered land

Answer 5

1) Legal rights bind the whole world (except from puisne mortgages)
2) Equitable rights are either:
a) subject to doctrine of notice
b) registrable as a land charge:
- puisne mortgages
- estate contracts
- restrictive covenants
- equitable easements post 1925
- Family Law Act (charges)

Question 6

Fee simple absolute in possession

Answer 6

• estate inheritable
• no restriction to who can inherit
• right is not subject to any conditions
• right is available now
• estate brought to end when O dies with no heirs -> returned to Crown

Question 7

Terms of years absolute

Answer 7

• estate lasts for a specific period of time (term)
• right is not subject to any conditions
• since no ‘in possession’ one can have benefit of lease that starts at some point in the future

Question 8

Commonhold

Answer 8

created to overcome difficulties faced by O of leasehold property in enforcing covenants; alternative method of holding freehold land; rare, Act 2002

Question 9

Easement

Answer 9

Right of O to use or restrict use of land of another, i.e. right of way

Question 10

Privilige

Answer 10

= profit a prendre, right to take sth from land i.e. fish

Question 11

Charge by way of legal mortgage

Answer 11

= mortgage, interest in house in exchange for loan

Question 12

Right of entry

Answer 12

Landlord can enter property and take it if tenant breached terms of lease

Question 13

Creation of legal interest

Answer 13

kind of interest from s1(2) LPA + deed (s52(1)) + registered where land registered = legal interest; failure in any = equitable interest

Question 14

Estate contract

Answer 14

1) Contract for sale and purchase of land
2) Option to purchase (right to purchase within fixed time period)
3) Pre-emption right (the purchase of goods or shares by one person or party before the opportunity is offered to others)

Question 15

Restrictive covenant

Answer 15

Promise by landowner not to do a particular act in relation to his land, i.e. not to build, not to use for business

Question 16

Registered land

Answer 16

LRA02 separates in:

1) registrable interests or dispositions
2) 3P rights and interests
3) unregistered or ‘overridning’ interest

Question 17

Registrable interests

Answer 17

s 27(2) LRA02; 
1) legal mortgage
2) rentcharge
3) right of entry
4) expressly granted legal easements
5) legal lease for over 7yrs
registrable interests + registration at land registry = binding

Question 18

3P interests

Answer 18

Protected by notice:

1) equitable easement and mortgage
2) restrictive covenant
3) estate contract

Protected by Restriction:
1) interest under trust

Need to be registered to bind 3P

Question 19

De Lusignan v Johnson

Answer 19

Failure to registere 3P interest will result in the owner of the interest having no way of protecting that interest

Question 20

Unregistered/overriding interest

Answer 20

Some 3P interests will bind purchaser of registered land even if they are not protected, (sch. 3 LRA02):
1) legal leases granted for

Question 21

Interests of people ‘in actual occupation of the property’

Answer 21

E interest + continuous or permanent occupation + disclosure upon reasonable enquiry/ obvious upon reasonable inspection = unregistered/overriding interest

Question 22

Williams & Glyn’s Bank Ltd v Boland

Answer 22

Home in H’s sole name, W had E interest, no repaying mortgage, mortgage company wanted to take house, but W was found to be in actual occupation of property thus she had overriding interest
+ overreaching can only take place when purchase monies paid to two trustees

Question 23

Strand Securities v Caswell

Answer 23

In order to claim an overriding interest by virtue of actual occupation, the occupation must be permanent and continuous

Question 24

Chhokar v Chhokar

Answer 24

H sold when W in hospital, buyer had to take subject to W’s interest since she was in actual occupation

Question 25

Legal interests in unregistered land

Answer 25

except from puisne mortgage, buyer will be bound by all the interests no matter if he knows about them (legal right binds whole world at CL)

Question 26

Equitable interests in unregistered land

Answer 26

must be registered in Central Land Charges Register to be protected; Land Charges Act 1972

Question 27

Puisne mortgage

Answer 27

mortgage that is not protected by the deposit of the title deeds with the lender, only legal interest capable of registration under LCA72

Question 28

Restrictive covenant under LCA

Answer 28

only C created after 1926, before that subject to E doctrine of notice, O bound by it unless BFP for value of the legal estate without notice

Question 29

Family Law Act charges

Answer 29

FLA 1996 gives a spouse right of occupation in matrimonial home, but no interest in the land, where not L owner

Question 30

Overreaching

Answer 30

s2 LPA - any interest under a trust of land can be ‘overreached’ by a purchaser of the legal estate of the land burdened by the interest, provided that the purchaser pays the purchase monies to two trustees or a trust corporation (enables P to take free of interest)

Question 31

City of London Building Soc v Flegg

Answer 31

Family home in joint names of H & W, W’s parents - E interest. H’s trustees remortgaged property to B.Soc, defaulted, B.Soc wanted to take property, held: overreaching defeated overriding interest of parents

Question 32

Rectification

Answer 32

Sch 4 LRA02, if mistake that could prejudicially affect the title of the registered proprietor, rectification necessary;
no need to prove fault;
no way of registering overriding interest by way of rectification, since not prejudicial;
registered proprietor must consent to change unless exceptions;
proprietor contributed via fraud or negligence to mistake?
would it be unjust to correct the mistake?