Land law l4 MCQ

Question 1

In the official copies of a registered title, in which register would you find the details of any burdens on the land?

Absolute title

Overriding interest

Charges register

Proprietorship register

Property register

Correct
This is correct. The charges register contains the details of any burdens on the land, for example mortgages or covenants that burden the land.

Answer 1

The charges register

Correct
This is correct. The charges register contains the details of any burdens on the land, for example mortgages or covenants that burden the land.

Question 2

A buyer and seller enter into a contract to buy/sell a freehold estate. They enter into a document which is described as a contract for the sale of land. The document contains all the agreed terms and is signed by the seller in the presence of a witness who attests their signature. Which of the following options correctly describes the validity of this document?

Answer 2

The contract is invalid because it does not comply with LP(MP)A 1989, s 2.

Correct
This is correct. The contract must comply with LP(MP)A 1989, s 2; it must be in writing, contain all the agreed terms and be signed by both parties. The document is not a valid contract as it has not been signed by both the buyer and the seller.

Question 3

Which of the following options correctly describes the nature of proprietary rights in land?

Answer 3

The right is enforceable in rem and is capable of being enforced against third parties

Correct
This is correct. A proprietary right is enforceable in rem, which means use or possession of the right can be recovered by the right holder, they do not have to settle for damages. A proprietary right is also capable of being enforced against a third party, not just the original grantor of the right. Registration systems are in place, which new land owners can check, enabling a right holder to protect their right so that it will be enforceable.

Question 4

Which of the following principles of land registration is arguably defeated by overriding interests?

Answer 4

The Mirror Principle

Correct
This is correct. Put simply the register should reflect all matters that the property has the benefit of and all the matters that the property is subject to, it should be a clear and comprehensive account of the ownership and rights that benefit and burden a piece of land. Overriding interests are interests that are binding even though they do not appear on the registered title. They are therefore criticised as defeating the mirror principle of land registration.

Question 5

Which of the following options correctly describes the nature of proprietary rights in land?

Answer 5

The right is enforceable in rem and is capable of being enforced against third parties

Correct
This is correct.
A proprietary right is enforceable in rem, which means use or possession of the right can be recovered by the right holder, they do not have to settle for damages.

A proprietary right is also capable of being enforced against a third party, not just the original grantor of the right.
Registration systems are in place, which new land owners can check, enabling a right holder to protect their right so that it will be enforceable

Question 6

On what basis might a clause in a mortgage deed, which imposes an interest rate of 25% per annum, be challenged?

Answer 6

This is correct. An interest rate may be amended or struck out by the court if it is imposed in a morally reprehensible way: CItyland Properties v Dabrah and Multiservice Bookbinding v Marden

Question 7

The case of Kreglinger v New Patagonia Meat Storage Co looked at the circumstances in which a collateral advantage may be upheld. What is the principle from that case?

Answer 7

A collateral advantage will be upheld if it is genuinely part of a separate transaction, irrespective of when it comes to an end

Correct
This is correct. If an advantage for the lender is genuinely separate from the mortgage then the question of whether it comes to an end within or beyond the mortgage term is irrelevant. Indeed, all mortgage law is irrelevant to a genuinely separate transaction.

Question 8

Last year A and B bought a registered freehold property with the assistance of a loan secured by a 25 year capital and interest repayment mortgage. The mortgage deed contains a term which states that the legal date for redemption is the final day of the mortgage term. Last week, A inherited a large sum of money. Which of the following is the correct statement on whether A and B can redeem the mortgage now, using the inherited money?

Answer 8

The mortgage can be redeemed because a clause which prevents redemption will be void

Correct
This is correct. A and B in this scenario do not have a right to redeem until the legal date for redemption has arisen. The clause which states that the legal date for redemption is the final day of the term will effectively prevent A and B from redeeming the mortgage for 25 years. Courts will declare void clauses which aim to prevent borrowers from redeeming mortgages, as here (Toomes v Conset).

Question 9

When does the borrower’s equitable right to redeem arise?

Answer 9

On the day after the legal date for redemption

Correct
This is correct. Generally speaking, the legal date for redemption arises between three and six months after the mortgage is created. The equitable right to redeem arises the next day. This means that the mortgage cannot be redeemed under any circumstances for the first few months.

Question 10

C and D recently bought a holiday home in the Alps. In order to fund the purchase, they borrowed money from the bank and secured the loan by granting to the bank a legal mortgage over the family home in England. Which one of the following correctly explains the position regarding possible undue influence?

The lender would not be put on enquiry of undue influence because there is no relationship of trust and confidence between C and D

The lender would be put on enquiry of undue influence because C and D are buying a property in a different country

The lender would be put on enquiry of undue influence because there is more than one borrower

The lender would not be put on enquiry of undue influence because the loan is for the joint benefit of C and D

The lender would not be put on enquiry of undue influence because the lender has taken the necessary steps to bring home the risk of the mortgage

Answer 10

The lender would not be put on enquiry of undue influence because the loan is for the joint benefit of C and D

Correct
This is correct. The lender would not be put on enquiry of undue influence because the loan is for the joint benefit of C and D. In CIBC Mortgages plc v Pitt the House of Lords confirmed that a lender would not be put on notice that there is a risk of undue influence where a transaction is ostensibly for a couple’s joint benefit, as it is on the facts here.

Question 11

What formalities must be met in order to create an express legal easement for five years?

The easement must be created by deed plus substantive registration

Answer 11

Correct
This is correct. All expressly created legal interests in land must be created by deed (LPA 1925, s 52) which complies with LP(MP)A 1989 s 1.
In addition the easement must be substantively registered LRA 2002 s 27(2)(d).

Question 12

A grants a two-year lease of a flat in A’s house to B. The lease includes an express right for B to store bikes in A’s garden shed. B stores several bikes and takes up all of the available space in the shed. To ensure the bikes are not stolen, B padlocks the shed and keeps the key.

Which statement correctly explains why the right is not capable of being an easement?

The right does not benefit B’s flat but simply benefits B personally

The right gives B exclusive possession of the shed

The right granted to B means that A will need to obtain permission to use the shed

The right granted to B means that A will incur expenditure paying for storage elsewhere

The right is not of a type which has been judicially recognised

Answer 12

The right gives B exclusive possession of the shed

Correct
This is correct. If the use granted to the grantee amounts to exclusive possession then the right is too extensive to be an easement. Here, the right leaves A with no reasonable use of the shed (the ouster principle form Batchelor v Marlow) and deprives A of possession and control of the shed (Moncreiff v Jamieson)

Question 13

A sold part of his field to B. In the transfer deed, B covenanted to build and maintain a fence along the boundary with A’s land. B built the fence. B sold his land to C last year. In the transfer deed, C entered into an indemnity covenant with B. The fence was damaged in a storm six months ago and C has not replaced it.

Which of the following statements correctly describes C’s position in relation to the covenant?

The burden of the covenant has not passed to C although C could be liable in damages to B

The burden of the covenant has not passed to C as the covenant is purely personal to B

The burden of the covenant has passed to C under the rule in Halsall v Brizell and C can be sued for breach

The burden of the covenant has passed to C under Tulk v Moxhay and C can be sued for breach

The burden of the covenant has passed to C as it has been expressly annexed to the servient land, and C can be sued for breach

Answer 13

The burden of the covenant has not passed to C although C could be liable in damages to B

Correct
This is correct. This is a positive covenant, so generally the burden does not pass to successors: Austerberry v Oldham Corporation. The exception in Halsall v Brizell does not apply here as there is no mutual benefit and burden in relation to this covenant. Therefore B remains liable in damages and can recover them from C as C entered into an indemnity covenant in this respect.

Question 14

A owned two adjoining freehold offices, Unit X and Unit Y, from which he ran his business. Needing less room, he sold Unit Y to B. In the transfer deed, B covenanted ‘for himself and his successors in title to Unit Y not to use Unit Y for retail purposes’.

A sold Unit X to C last week but the transfer did not mention the covenants. B is now using Unit Y as a car parts sales centre.

Which of the following statements correctly describes C’s position in relation to the benefit of the covenant?

C has the benefit of the covenant by express assignment

C has the benefit of the covenant by statutory annexation

C has the benefit of the covenant by express annexation

C does not have the benefit of the covenant as there is no annexation

C does not have the benefit of the covenant as there is no assignment

Answer 14

C has the benefit of the covenant by statutory annexation

Correct
This is correct. The wording of the covenant does not annex the benefit expressly; nor is there any evidence that the covenant has been expressly assigned when Unit X was transferred. In the absence of express annexation, Law of Property Act 1925, s 78 operates to annex the benefit of the covenant to the dominant land at the time the covenant was created. So when the Unit X was transferred to C, C gained the benefit of the covenant and can enforce it.

Question 15

What does Administration of Justice Act 1970, s 36 enable a court to do?Postpone an order for possession of commercial property for a reasonable period

Postpone an order for possession of residential or commercial property for 28 days

Postpone an order for possession of residential property for a reasonable period

Prevent a lender from repossessing mortgaged property altogether

Postpone possession by a lender even if the lender has not applied for an order for possession

Answer 15

Postpone an order for possession of residential property for a reasonable period
Correct
This is correct. As long as the lender has applied for an order for possession, the court may postpone possession of residential properties only on such terms and for such a period as it considers reasonable to give the borrower the chance to repay the arrears.

Question 16

What is the appropriate way to ensure that a restrictive covenant over registered land is enforceable against a successor in title to that land?

Answer 16

Entry of a notice under Land Registration Act 2002, s 32

Correct
This is correct. A covenant which is protected in this way will be enforceable against every new owner of the land, including the purchaser for valuable consideration: Land Registration Act 2002, s 29(2)

Question 17

D was the registered proprietor of land. Last November, in signed writing, D granted E a right of way across D’s land until D or D’s successors in title obtained planning permission to develop the land. No steps were taken to register the right. Last week, D sold the land to F who is now the registered proprietor of the land. Planning permission has not yet been granted.

Which one of the following statements best describes the legal position?

F is bound by the right of way as it is an overriding interest

F takes the land free of the right of way because it has not been protected by a notice

F takes the land free of the right of way as it is a registrable disposition but has not been substantively registered

F is bound by the right of way as it is a properly created equitable easement

F takes the land free of the right of way as it is a personal, not a proprietary right because it has not been created properly.

Answer 17

F takes the land free of the right of way because it has not been protected by a notice

Correct
This is correct. This is an inherently equitable interest (for an uncertain term) which has been correctly created (Law of Property Act 1925, s 53(1)(a). However, as it has not been protected by a notice under Land Registration Act 2002, s 32 a purchaser for valuable consideration, as F is, will not be bound by it Land Registration Act 2002, s 29(1).

Question 18

Which one of the following leases is an overriding interest under Land Registration Act 2002, Schedule 3 paragraph 1?

Answer 18

A legal lease for 7 years or under

This is correct. A legal lease for more than 7 years is a registrable disposition. Legal leases for a shorter term are automatically enforceable as overriding interests Land Registration Act 2002, s27(2)(b)

Question 19

Which one of the following interests can be overreached?

A legal lease for 7 years or less

An equitable lease where the tenant is in actual occupation

A beneficial interest under a trust where there are 2 or more legal owners

A restrictive covenant where there are 2 legal owners

A beneficial interest under a trust where there is one legal owner

Answer 19

Correct
This is correct. Law of Property Act 1925, s 2 and s 27 state that is purchase money is paid to at least 2 trustees/legal owners, the beneficiary’s interest moves away from the land and into the sale proceeds.

Question 20

Last year, A bought a registered freehold property which was registered in his sole name. B paid a substantial sum towards the purchase price. A and B lived at the property together. Last week, B had to go into hospital for several days for an operation. Whilst B was away, A sold the property to C.

Which of the following statements best describes the legal position?

B had an interest in the land but this has been overreached. However B remains in actual occupation so C is bound by B’s occupation.

B has an interest in the land which has not been overreached and which binds C as an overriding interest as B is in actual occupation.

B is in actual occupation of the land despite being in hospital and C is bound by B’s interest.

B had an interest in the land but this has been overreached, so the question of whether B is in actual occupation is irrelevant.

B has an interest in the land which has not been overreached, so remains in the land. However it will not bind C as B is not in actual occupation.

Answer 20

Correct
This is correct. B has a beneficial interest in the land which arises as a result of the contribution to the price.
As the purchase money was paid to one legal owner, the interest remains in the land and has not been transferred into the money.
The interest in land is binding on C as, despite B’s physical absence from the property, B is still in actual occupation: Link Lending v Bustard; Chhokar v Chhokar; Land Registration Act 2002, Schedule 3 paragraph 2.

Question 21

Which of the following statements accurately describes the effect of ‘survivorship’?

Survivorship operates on legal and equitable joint tenancies, so that when a joint tenant dies, the legal and equitable interests continue to be held by the surviving joint tenant(s).

Survivorship operates on the legal joint tenancy, so that when a joint tenant dies, the legal title continues to be held by the surviving joint tenant(s).

Survivorship operates on the equitable joint tenancy, so that when a joint tenant dies, the equitable interest continues to be held by the surviving joint tenant(s).

Survivorship operates on legal and equitable joint tenancies, so that when a joint tenant dies, the legal and equitable interests will be held by person entitled under the deceased joint tenant’s will or on intestacy.

Survivorship operates on equitable joint tenancies, so that when a joint tenant dies, the legal and equitable interests will be held by the person entitled under the deceased joint tenant’s will or on intestacy.

Question 22

Four friends (A, B, C and D) are the registered proprietors of a property. When they purchased it, A and B each paid 30% of the purchase price, and C and D each paid 20%. The transfer deed included a declaration that they hold the property as beneficial joint tenants. Last week, C moved out of the property and sent a letter, addressed to A, B and D, telling them that they wished the property to be sold as soon as was convenient, as they wished to move on with their life. When the letter arrived at the property, D read it and threw it away without telling A and B about it.

Which of the following statements best explains the legal position?

C’s letter severs the joint tenancy in equity and C now holds a 25% share as tenant in common whilst A, B and D hold 75% as joint tenants

C’s letter severs the joint tenancy in equity and C now holds a 20% share as tenant in common whilst A, B and D hold 80% as joint tenants

C’s letter does not sever the joint tenancy in equity because it has not been read by A or B, so is not properly served

C’s letter does not sever the joint tenancy in equity because it does not demonstrate the requisite intention to sever

C’s letter severs the joint tenancy in equity and all owners now have a 25% share as tenants in common

Question 23

Which of the following statements accurately describes the effect of ‘survivorship’?

Answer 23

Survivorship operates on legal and equitable joint tenancies, so that when a joint tenant dies, the legal and equitable interests continue to be held by the surviving joint tenant(s).
Correct
This is correct: survivorship operates on legal and equitable joint tenancies. As the joint tenants are viewed as a single entity, when one dies, the joint interest continues to be held by the surviving joint tenants.