1): Freehold and Leasehold Estates, and Legal and Equitable Interests in Land

Question 1

What is the difference between real and personal property?

Answer 1

Real property: Land-related rights excluding leases (e.g. freehold, easements, mortgages)

Personal property: Everything else – leases, chattels, goods, shares, money

Question 2

What test distinguishes fixtures from chattels?

Answer 2

▸ Fixtures = part of land (included)
▸ Chattels = not included (personal property)

2 stage test:
- Degree of annexation – how firmly attached
- Purpose of annexation – permanent improvement = fixture; for enjoyment/use = chattel

Question 3

What is an estate in land? What are the two legal types?

Answer 3

1. A time-limited right to possess land
2. Freehold = fee simple absolute in possession (perpetual ownership)
3. Leasehold = term of years absolute (fixed/periodic right to occupy)

Question 4

What is an interest in land?

Answer 4

A non-possessory right over another’s land

Legal interests (s.1(2), LPA 1925): easements, mortgages, rights of entry

Equitable interests: restrictive covenants, trusts, estate contracts

Question 5

How are legal estates and interests created or transferred?

Answer 5

1. Must be by deed + Deed must:
   - Say it’s a deed
   - Be signed, witnessed, and delivered
2. Exception (s.54(2), LPA): no deed needed if:
   - Lease ≤ 3 years
   - Immediate possession
   - Market rent
   - No fine/premium

Question 6

When is an estate or interest equitable?

Answer 6

1. If not listed under s.1 LPA 1925
2. Formalities (s.53(1)(b), LPA 1925): must be in writing and signed
3. Created via:
   - Failed legal interest
   - Express/implied trust
   - Estoppel
   - Contract complying with LP(MP)A 1989

Question 7

What is an estate contract and what rights does it give the buyer?

Answer 7

1. A contract to buy land
2. Buyer gets equitable interest upon exchange (before completion)
3. If seller defaults → buyer may get specific performance if:
   - Valid contract
   - Buyer has “clean hands”

Question 8

How are third-party interests protected in registered and unregistered land?

Answer 8

1. Registered land:
   ▸ Enter on Land Register (e.g. notice or restriction)
   ▸ Overriding interests (e.g. actual occupation) bind even if not registered
2. Unregistered land:
   ▸ Legal interests bind automatically
   ▸ Equitable interests must be registered as land charges
   ▸ If not registered → buyer for value without notice takes free

Question 9

What is a Freehold (Fee Simple Absolute in Possession)?

Answer 9

1. Absolute estate in land
2. Gives immediate and unconditional possession
3. Can be inherited or transferred

Question 10

What is a Leasehold (Term of Years Absolute)?

Answer 10

1. Exclusive possession for a fixed/periodic term
2. Arises from grant out of a freehold or superior leasehold
3. Can renew automatically unless terminated