What Am I Buying - Estates And Intersts In Land

Question 1

What are the two types of legal estates recognised by law? Give details of the statute law.

Answer 1

Under s1(1) Law of Property Act 1925, the two legal estates recognised in law are:-

Fee simple absolute in possession (freehold)
Term of years absolute(leasehold)

Question 2

Explain what fee simple absolute in possession means.

Answer 2

Fee = The land is capable of being inherited

Simple = there is no limitation on who can inherit.

Absolute = it is not subject to limitations which might bring the state to an end prematurely.

In possession = The hold of the estate must have an immediate right to go into possession

Question 3

In order for a freehold estate to be legal, how must it be created? Give the statute law.

Answer 3

In order for an estate be legal it must be created by deed under s52 Law of property act 1925.

Question 4

How does freehold property exist?

Answer 4

Freehold exists in perpetuity, that is, goes on forever

Question 5

What is another name for a term of years absolute?

Answer 5

A lease

Question 6

What is a lease?

Answer 6

A lease is an estate which exists for fixed maximum duration..

Question 7

Under s205(1)(xxvii) Law of Property Act 1925, how can a lease be fixed?

Answer 7

Leases can be fixed turn or periodic, thus the expression “term of years” includes weekly or monthly tenancies.

Question 8

When Are fixed term tenancies terminated?

Answer 8

Fixed term tenancies terminate at the end of that time

Question 9

How are periodic tenancies terminated?

Answer 9

By notice to quit.

Question 10

In order for a lease to be legal, how must be created?

Answer 10

By deed.

Question 11

Name the five legal interests.

Answer 11

1. Legal easements and profits
2. Rights of entry
3. Legal rentcharge
4. Charge by way of legal mortgage
5. Charges arising under statute

Question 12

What statute of the legal interest under?

Answer 12

s1(2) Law or Property Act 1925.

Question 13

Can equitable interest be held by anyone?

Answer 13

An equitable interest can be held by someone of any age.

Question 14

Give examples of equitable interests that can arise in English law.

Answer 14

Trusts, interest which do not comply with the required formalities, following exchange of contracts an estate contract arises and this is an equitable interest and the benefit of a restrictive covenant.

Question 15

What are the two main categories of rights in land?

Answer 15

Legal estates and interests and equitable interests.

Question 16

What do legal estates and interest do and what does it mean?

Answer 16

Legal estates an interest bind the world and this means that any buyer of the land will be bound by the legal estate or interest whether they know about them or not

Question 17

What are equitable interests?

Answer 17

Equitable interests are interests which were developed by the court of equity, and are based on the principle of fairness.Not all buyers will be bound by equitable interests

Question 18

What is commonhold and give the statute law.

Answer 18

Commonhold was introduced by the commonhold and leasehold reform act 2002 in order to meet the needs of owners of flats or apartments and other properties where the owners are interdependent.