The Nature of Land

Question 1

What is land?

Answer 1

Law of Property Act 1925 S 205(1)

Land includes:

• physical land
• buildings
• fixtures ( corporeal hereditaments)
• rights over land (incorporeal hereditaments)

Question 2

What are corporeal hereditaments?

Answer 2

things we can touch and feel with senses

Question 3

What are incorporeal hereditaments

Answer 3

can be inherited= things that cannot be handled or felt

Question 4

What are fixtures?

Answer 4

Fixtures:

• Part of Land or part of building that is part of Land
• Whatever is attached to the soil becomes part of it
• anything that is a fixture on date of sale or mortgage is part of the sold/mortgaged property so cannot be removed.

example: garage/house, picture hung with panelled walls meant to enhance room, cooker part of hob,

Question 5

What are chattels?

Answer 5

moveable property/personal items - these are not included

example: white goods, curtains/blinds/carpets, light fittings if easily removed, garden shed/greenhouse if easy to remove, statue if not part of design.

Question 6

What are the two tests to resolve fixture/chattel disputes? Where does it come from?

Answer 6

Test comes from Berkley v Poulett

1. Degree of annexation test
2. Purpose of annexation

Question 7

What is the Degree of annexation test?

Answer 7

It creates a presumption that if something is fixed/ attached/ bolted to the building it is a fixture. If the item were to be removed it would cause damage to property. If the item is moveable or resting on own weight it is a chattel.

Question 8

What is the Purpose of annexation test?

Answer 8

Presumption made by degree test can be rebutted by purpose test.

Was the chattel put there to make the use of the chattel more convenient (painting to be looked at ) ? or was it to improve the property (chattel becomes fixture).

Question 9

How do fixtures and chattels pass to new ownership?

Answer 9

Fixtures only transferred by conveyance

Chattels only need to be delivered to transfer ownerhip

Question 10

What is a conveyancing transaction?

Answer 10

process of transferring ownership of land.

Question 11

What is the two stage process in conveyancing transaction?

Answer 11

• exchange of contracts: buyer signs one copy, seller signs other copy and they exchange
• completion: ownership does not pass immediately on exchange of contract but usually four weeks later as set out in contract. This means seller is owner until the date stated. On completion date - money sent to seller in exchange for deed.

Question 12

What is a deed?

Answer 12

Deed is know as Transfer.

Deed must:

• comply with s 1 of Law of Property Act 1989
• Doc must clearly state that it is intended to be a deed
• must be signed by parties and signatures must be witnessed
• must be delivered

Question 13

Who is the owner of all UK land?

Answer 13

The Crown

Question 14

What is an estate in land?

Answer 14

An interest in land that entitles the owner to possession of the land either now, or at some time in the future, for a specific or unlimited duration.

Question 15

What are the two types of estate in land? What section of LPA?

Answer 15

1. Freehold
2. Leasehold

S 1 Law Property Act 1925

Question 16

What are interests in land?

Answer 16

lesser rights which fall short of possession. Rights which a person has over land owned by someone else.

Question 17

What interests in land are capable of being legal? What s of LPA?

Answer 17

S 1 (2) LPA 1925
5 interests

1. Leases
2. Mortgages
3. Easements and Profits
4. Rentcharges
5. Rights of Entry

Question 18

What are easements and profits? When are they legal?

Answer 18

Easement is a right of one landowner to make use of another nearby piece of land for the benefit of their own land. (Right of way)

Profit is a right to go on somebody else’s land and take from that land something which exists naturally (right to fish or graze cattle).

They are both only legal if they last forever or for specific time. if there is uncertain duration (when x person dies) then not legal.

Question 19

What is a rent charge? When are they legal?

Answer 19

Right to receive a periodic payment charged on the land. Legal only if forever or specific duration.

Question 20

What is a right of entry?

Answer 20

Either:

Landlord’s right to forfeit the lease if the tenants breaks the terms of the lease.

rentcharge owner’s right to reclaim the land if the money owed is not paid.

Question 21

What are the formalities to create or transfer a legal estate or interest?

Answer 21

section 52 (1) LPA 1925 = deed is required

s1 LP miscellaneous provisions 1989 = a deed must be
- in writing
- state that it is a deed
- signed
- witnessed (one witness)
- delivered

Question 22

What must the contract for the creation or transfer of rights in land include?

Answer 22

s 2 LPMPA 1989
contract must:
- be in writing
- incorporate all expressly agreed terms in one doc

Question 23

What interests in land can only be equitable?

Answer 23

1. Freehold covenants
2. Estate Contracts (options, contract to grant lease did not follow formalities to be legal, same for easement)
3. Matrimonial Home Rights ( s30 family law act 1996)
4. Ben Interest under a Trust of Land

Question 24

How are ben interests under a trust of land created?

Answer 24

Express trust:
- self declaration. Settlor retains legal title to property but declares they hold the property as trustee for ben.
- declaration plus transfer. Settlor declares trust and transfers legal title to trustees who hold property on trust for ben

Implied trust - no declaration. This could be:

• Resulting trust: person who is not legal owner contributes directly to the purchase price of property. Interest is in proportion to contribution
• Constructive Trust: contribution by non legal owner such as mortgage payments, improvements to home. Interest will be quantified according to conduct of parties.

Question 25

What is a licence?

Answer 25

Personal right so there is no interest in land. It is binding only between parties and will not bind successors in title.

Question 26

Difference between Bare licence and Contractual licence?

Answer 26

Bare:

• granted for no consideration
• can be revoked at any time

example = allow you to cross my field.

Contractual:

• there is consideration
• revocation if not correct can lead to breach of contract/damages

example = you go to the cinema, pay ticket to stay there for duration of film