Unit 1- Acquisition and Ownership of land

Question 1

What is an Estate in Land?

Answer 1

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

Question 2

What are the two types of estates in land?

Answer 2

Freehold and Leasehold

Question 3

What is an interest in land?

Answer 3

Lesser rights over the land which falls short of granting possession. There are generally rights which someone has over the land of someone else.
Two types of interest: Legal rights and equitable rights.

Question 4

What describes the main interests in land that are capable of being legal?

Answer 4

Mortgages, Easements, Leases

Question 5

What describes the main interests in land that are only capable of being equitable?

Answer 5

Freehold covenants, estate contracts, matrimonial home right, beneficial interest being under a trust of land

Question 6

What is a lease?

Answer 6

A lease is capable of being a legal equity in land, or an equitable interest. A lease allows multiple parties to exploit the benefits of owning an estate in land simultaneously.

Question 7

How does a lease differ from a licence?

Answer 7

A lease is a proprietary interest in land, granting the owner the right to exclude all others, including the landlord, from the land for the duration of the term.

Question 8

What is a proprietary interest?

Answer 8

A proprietary interest refers to the legally enforceable right to possess or use property, which falls short of granting possession (tenants lease for a house)

Question 9

What is a licence?

Answer 9

Only gives the licensee personal permission to be on the land. It is not a proprietary interest, so will not bind 3rd parties, and can only be enforced against the original licensor.

Question 10

What are the three requirements for a lease?

Answer 10

Certainty of terms: the beginning and end dates of the lease are known. There are two types:

• Fixed term: The maximum duration is known from the outset. A certain date must be known, and the lease must be expressly created. It can only come to an end if the term expires, a clause is broken or the lease is forfeited.
• Periodic Term: Where the duration of the lease runs in periods which are automatically renewed unless either party serves a notice to quit. It may be expressly created or implied by payment.

Question 11

How is the term of the period set?

Answer 11

Set by how the rent is calculated e.g., a tenancy paid for quarterly but calculated annually is a yearly tenancy. Notice must be given at lease one full period in advance- 6 months for yearly or at least 4 weeks for less than a month.

Question 12

What is exclusive possession?

Answer 12

The tenant has the legal right to exclude anyone from the property, including the landlord.

N.b. where an employee is required to live in a place to do a job, that does not count as a tenancy, even if they pay rent.

Burden of proof on the tenant claimant to show they had the power to exclude all others from the property.

Question 13

How can multiple occupants have the right to exclusive possession?

Answer 13

They must all have: (AG Securities v Vaughan)
*Possession
*Interest
*Time
*Title

Question 14

What is land?

Answer 14

Land includes the physical land, buildings and fixtures (corporeal) and rights over the land (incorporeal)
Land also includes the air above the land, subject to some exceptions

Question 15

What happens when things are found on the land?

Answer 15

When an object is found, stage one is to determine if the ‘true’ owner can be found. - property is not abandoned merely because it is forgotten about.
*If the object is defined as a treasure, then it belongs to the crown.
*If the object is not a treasure but is attached to the land or is under the surface, it is a part of the land and can be claimed by the land owner.
*When the original owner cannot be traced, property is not treasure and it is not attached to the land, it can be claimed by the finder unless expressly stated by the landlord (signs) or there is an employer/employee relationship.
*Private occupiers usually own thins on their land if the original owner cannot be found.

Question 16

What is a fixture?

Answer 16

Anything attached to the land is part of the land- a fixture

Question 17

What is a chattel?

Answer 17

Goods that are not fixtures or otherwise part of the land e.g. are freestanding.

Question 18

What are the two tests for determining if something is a fixture?

Answer 18

1. The degree of annexation test- creates a presumption that if something is fixed to a building, it is a fixture. If it is movable or resting on its own weight, then it is a chattel.
2. The purpose of the annexation- asks whether the chattel was put there to make the use of the property more convenient, or was it put there to improve the property- used to rebut the presumption in the degree test.

Anything that is a fixture on the date of the sale or mortgage is part of the sold/mortgaged property, so cannot be removed without express permission.

Question 19

What is the process of transferring land called?

Answer 19

Conveyancing

Question 20

When does an agreement between seller and buyer become legally binding?

Answer 20

When they have signed the contract. Before it has been signed, either party can withdraw from the agreement.

Question 21

What might a new owner be interested in knowing?

Answer 21

if there are any third party rights over the property, if there are any restrictive covenants, if it requires planning permission,

Question 22

Once the contracts have been signed and exchanged, what happens?

Answer 22

The parties are contractually bound to one another. Failing to comply with the terms of the contract will be a breach.

Question 23

Upon the signing of the contract, does the property instantly pass to the buyer?

Answer 23

No. The contract states that the buyer agrees to buy the property on the ‘date of completion’. This is usually 4 weeks after the contract has been signed. Property doesn’t pass until the completion of the transaction.

Question 24

What is a deed?

Answer 24

In common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed.

Question 25

When does a deed come into play?

Answer 25

At completion the purchase money is handed to the seller and the client receives the deed.

Question 26

Is it possible to make a binding verbal contract for the sale of land?

Answer 26

No. It will be an agreement until contracts are formally exchanged.

Question 27

What are the requirements for a binding contract?

Answer 27

*Must be created in writing.
*Must contain all the terms agreed by the parties, for example the address of the property, the price, the completion date, and it must be signed by both the buyer and seller. Illustrated under s2 of the Land and Property Act 1989 and they ensure that no-one enters into a contract for the sale of land by mistake.

Question 28

What are the requirements for a valid deed?

Answer 28

• Comply with section 1 of the Law of Property (Miscellaneous Provisions) Act 1989.
  *Must clearly state it is intended to be a deed.
• Must be signed by the parties and the signatures must be witnessed.
  *It must be delivered.

Question 29

What is a deed used at completion called?

Answer 29

a transfer

Question 30

What are corporeal hereditaments?

Answer 30

‘Corporeal’ refers to things we can actually touch

Question 31

What are incorporeal hereditaments?

Answer 31

‘incorporeal’ can neither be handled nor felt.

e.g. the right to use a drain

Question 32

What does a client become when they become an owner of land?

Answer 32

An owner of an ‘estate’.

Question 33

Who is the only true owner of land in the UK?

Answer 33

The Crown

Question 34

What does it actually mean if an individual says that they ‘own land’ in line with the status of the Crown?

Answer 34

They have the right to enjoy land for a period of time. This is known as the ‘estate’ in land.

Question 35

What is the largest estate in land known as?

Answer 35

The ‘freehold’ or ‘fee simple’.

This estate can last forever. It can pass from the owner to their heir in a will.

Question 36

What happens to a freehold estate when the owner dies?

Answer 36

The freehold can pass to their children. If there are no children, it will pass to brothers and sisters, or uncles and aunts. If there is no family then the freehold goes back to the Crown.

Question 37

Can a freehold last forever?

Answer 37

Yes, a person with a freehold is able to do what they like with it. They can pass it on to heirs and thus it can theoretically never end.

Question 38

What is a leasehold estate?

Answer 38

The owner of the freehold can create shorter estates out of the freehold estate.

A leasehold estate is when the freehold gives someone the right to use their land for a period of time. The freehold becomes a landlord to the occupant, the tenant. The freehold loses the right to occupy the land, but in return he gets rent.

A leasehold estate is for a specific period of time (1 week to 999 years) agreed by the parties from the outset. During that time the leasehold estate can be sold by the tenant, given away or inherited.