Nature of Land MCQs Flashcards
A client, who owns a large area of undeveloped land, contact a solicitor as he has discovered reserves of coal on his land. He asked the solicitor to send him a copy of his title deeds as he has been informed by a friend that he can sell the coal unless there is an agreement with the Coal Authority confirming that they own this.
Which of the following best represents the legal position?
A) for the coal authority to have any claim on this cold they need to have a specific legal agreement registered against the title deeds.
B) There is no requirement for specific agreement from the Coal Authority, the client is entitled to sell any coal he finds and can dig to any level he likes as he owns everything above and below his land.
C) The client cannot extract this coal himself. He must ask the Coal Authority authority to do this for him. If they do they will cover all costs and give him 50% of the profits by way of compensation.
D)
There is no requirement for a specific agreement from the coal authority, the client is entitled to sell any coal he finds but he can only take to 300 m below the surface level.
E) The client cannot extract this coal himself. All reserves of coal are owned by the coal authority who must grant licenses for exploration and extraction of the same.
E
This is because despite ‘mines and minerals’ be included within the statutory definition of land, all mines were privatised in 1994 and as such, statute now confirms that reserves of: not belong to individual landowners.
Options A-D are all incorrect as they suggest that the client can extract the call, either with permission or in the absence of any legal agreement registered against the title deeds.
The client has recently purchased a property. Upon moving in, he has realised that the previous owners have removed all light fittings and light switches and replace these with ones are far inferior quality. They have also removed a microwave that was integrated into the fitted kitchen unit and have caused damage to the surrounding cupboards when the microwave was removed.
The client has spoken to the previous owner directly who has informed him of these items were their personal possessions, and they were told by their legal advisor to remove them.
How should the solicitor advise the client when considering the specific items?
A) whether these items are classed as fixtures or chattels will depend upon the degree of annexation and the purpose of the annexation. If there is any damage caused when removing these, they will be classed as fixtures. If, however, there is no damage, but the item was merely a temporary improvement then it will be a chattel. It is likely the client will only be able to make a claim for the microwave.
B)
if the previous owner received advice from their legal advisor to remove these items then there is nothing the client can do, even if the advice is incorrect.
C)
these items are all classed as chattels and the previous owner is entitled to remove them. There is nothing further the client can do.
D)
these items are all classed as fixtures. The previous owner should not have removed them. The client must make a claim in the small claims court to recover any money lost in replacing these items.
E) where are these items are classed as fixtures or chattels will entirely depend upon the aggrieve annexation only if there’s any damage caused when removing the items, they will be classed as fixtures. The client will be able to make a claim for all items that have been removed.
A
It’s because whether an item is a fixture or a chattel is usually fairly straightforward, but where there is any ambiguity you need to consider the degree of annexation and the purpose of annexation.
Here, the microwave was part of the fitted kitchen and the damage has been caused when removing it, meaning it is a fixture. The light fittings and switches, however, are unlikely to have caused damage when being removed until the purpose of annexation would be considered. Here, it would seem obvious that they were fitted to create a temporary improvement and so would be a chattel.
B is incorrect as if there has been incorrectly given advice then the client may well have a private action against that solicitor and so it is incorrect to say that there is nothing he can do.
Options C, D and E are incorrect as they do not consider that one of the items is a fixture and the other is a chattel.
A client has sought advice in respect to legal ownership of the property that she lives in with her husband. She has received a copy of the title deeds and it is only her husband who has legal ownership of the property. The client informs her solicitor that she was the one who paid the full purchase price for the property at the time and is now concerned that she will have to leave the property should her husband die before her and that she will have no way of getting her money back. She is now approaching her 80th birthday and wishes to make sure all her financial affairs are in order before she updates her will.
A) the client is not shown as a legal owner on the title deeds and as such she does not have any legal ownership entitlement to benefit from the property.
B) Regardless of whether the client is shown on the title deeds, she can clearly show that she has legal ownership in the property as she has paid for the purchase of the property info. The property will automatically transfer to her on her husbands death.
C) As she has contributed for the purchase price the client will hold an interest in the property. Her husband owns the whole of the legal ownership but hold this on trust for the client by way of a resulting trust. The client is entitled to 100% of the equity of the property is sold.
D) As she has contributed to the purchase price the client will hold an interest in the property. However, as she is married this will be limited to a 50% interest. If the clients husband dies, the property will be sold, and she will receive 50% of the equity.
E) As she has contributed to the purchase price, the client will hold an interest in the property. The clients husband owns the whole of the legal ownership but hold this on trust for her by way of a constructive trust. The client is entitled to 100% of the equity of the property is sold.
C
This is because this is a clear example of a trust, which provides an equitable right to the party who does not have legal ownership of the property.
Option A is incorrect as whilst it is true that the client does not have legal ownership, this also states that she has no entitlement to benefit from the property, which is incorrect.
Option B is incorrect as legal ownership of property does not transfer automatically. There must always be a deed registered with HM land registry.
Option D is incorrect as the states of the clients interest is limited to 50% as she contributed 100% of the purchase price then it is not limited to 50% simply because of their marriage.
Option E is incorrect as this refers to a constructive trust. The distinction between the resulting and constructive trust is that this was a direct contribution to the purchase price, which makes this a resulting trust.
A building society has sought legal advice on their interest in 84 Lower Mast Farm, which they were granted a mortgage five years ago. The legal owners have defaulted on the mortgage and the building society wish to seek possession of the property. They have obtained a copy of the title deeds which do not show their legal interest. It is transpired that while the deed was correctly executed, it was never registered with HM land registry.
Which of the following best represents the legal position of the Building Society?
A) for legal interest in land to be valid, there must be a valid deed and it must be executed. If this has happened then there is nothing for the building society to worry about and their legal interest is protected.
B) For a mortgage to be a valid legal interest, there must be a valid deed, it must be executed and it must also be registered with HM land registry to take affect as a legal interest. If it has not been registered in this way and the mortgage will be an equitable one only. The Building Society can still assert their rights in full if they register a notice against the title deeds.
C) for a mortgage to be legal interest in must be executed and it must also be registered with HM land registry to take affect as a legal interest. If it has not been registered in this way that the building society have no way of enforcing any of their rights.
D) As the building society contributed towards the purchase price, they can clearly demonstrate that they have an equitable interest in the land by way of a constructive trust.
E) For a mortgage to be a valid legal interest there must be a valid and it must be executed and they must register restriction in the property register of the title deeds. If this has been satisfied then there is nothing for the building society to worry about and their legal interest is protected.
B
Clear example of the principles of fairness that equity provides. It would be unjust for the mortgagee to lose their investment due to no fault of their own. The requirements have not been met for this to be a legal mortgage and so will automatically fall to an equitable interest. They do not need to register a notice against the title deeds.
Options A and E are incorrect as legal interests are only valid if they are made by a deed and registered.
Option C is incorrect as it states of the building society have no way of enforcing their rights, however, if they register a notice against the title deed, they can enforce their rights.
Option D is incorrect as the grant of the mortgage does not confer an equitable interest upon a mortgage lender by way of a constructive trust.
A client has sought advice on the validity of an agreement made with a neighbour over the purchase of a small strip of the neighbouring land. This was a verbal agreement between them, and the neighbour told the client that the land would be left to him in his well. The neighbour has recently died and the client has been made aware that there is no well and the entire neighbouring estate, including the strip of land promised to him, has been inherited by the neighbours family. They are now refusing to uphold the verbal agreement.
Does the client have any demonstrable interest in the neighbouring land?
A) as the neighbour had verbally promised this line to the client there was no need for a deed. As long as the parties are in agreement with the transaction then it will be valid and the client can enforce this agreement against the neighbours family.
B) As the neighbour had verbally verbally promised this land to the client then there was no need for a deed and the client can rely on the doctrine of Promissory Estoppel to force this agreement against the neighbours family.
C) As the neighbour has verbally promised line to the client then there would be no legal estate demonstrated unless a deed has been signed and it has been registered with HM land registry that would have then transfer the land from the legal ownership of the neighbour to the client. As this has not happened and the land has not been left in the world and the client will have no claim against the neighbouring estate.
D) As the neighbour has verbally promised this land to the client then this will be legal interest in the land by way of right of entry. The client has the right to use the land for as long as he wishes in accordance with the agreement made.
E) As the neighbour has verbally promised this line to the client then this would be an equitable right-of-way of a constructive trust. The client has the right to use the land for as long as he wishes in accordance with the agreement made.
C
It’s because there is no legal estate here as there is no deed and it’s not been registered. The neighbour could have left the land in a will as land owners are entitled to transfer land in this way, but as he has not done this and the rules of intestacy will apply, and the client has no claim on the estate on a verbal promise.
Option A is not the best answer since it is notoriously difficult to demonstrate a valid verbal agreement.
Option B is incorrect as you do not have enough information to demonstrate that there is Promissory Estoppel here, which requires a person to act for their detriment on the promise of another. We do not know that the client has acted to his detriment.
Option D incorrect as rights of entry are legal interests and so must be made by deed.
Option E is incorrect as you would need to demonstrate that the client has made a significant contribution to the upkeep for other payment on the land. You do not have this information to be able to select this as an answer.
Your client has agreed to purchase the unregistered freehold of a large farm. The seller signs and dates the transfer deed in the presence of a witness who attests the seller’s signature.
Which of the following statements best describes your client’s position in respect of the legal ownership of the farm?
A. The client holds the legal title but it will revert back to the seller if not registered within two months
B. The seller holds the property on trust for the client until the transfer is registered with the Land Registry
C. The transfer will not take effect at law until title is registered with the Land Registry
D. The transfer deed is of no effect because it does not include all of the terms expressly agreed by the parties
E. The transfer deed is of no effect because the client has not signed the document
A. The client holds the legal title but it will revert back to the seller if not registered within two months
The transfer of the unregistered freehold has been effected by deed so the legal title passes to the client on completion, who then has two months to register the land for the first time. See ss 4, 6 and 7 Land Registration Act 2002.
A purchaser has agreed to buy the registered freehold of a large office block. The buyer and seller both sign a document headed ‘deed’ and their signatures are attested by a witness. The document is then dated.
Which of the following statements best describes the legal position?
A. The purported deed is defective and the purchaser has no interest in the property
B. The transfer will not take effect at law until title is registered with the Land Registry
C. The purported deed is defective but a contract may be construed from the failed grant
D. The purchaser holds the legal title but it will revert back to the seller if not registered within two months
E. The purchaser holds the legal title to the property
B. The transfer will not take effect at law until title is registered with the Land Registry
The transfer must be completed by registration to take effect at law. See LRA 2002, s27(2)(a) and s27 (1).
You act for a refuse collection and disposal company. who recently entered into negotiations with Waste Limited, the owner of a landfill site. Waste Limited has offered your client the opportunity to use the site. The first offer is a 12-month licence to use the site for a payment of £200,000. The second (alternative) offer is the grant of a 12-month lease of a specified part of the site for a payment of £225,000. In either case the maximum amount of refuse that your client may deposit is 25 metric tonnes.
Which of the following options is the best advice to your client as to which offer they should accept?
A. Your client should accept the lease because it would give it a personal right in the land
B. Your client should accept the lease because it would enable it to recover use of the right to use the site if Waste Limited subsequently tried to revoke the right.
C. Your client should accept the licence because it would give it a proprietary right in the land
D. Your client should accept the licence because it is capable of being enforced against third parties should Waste Limited sell the site
E. Your client should accept the lease because it will entitle R to sue for breach of contract should Waste Limited breach the terms
B. Your client should accept the lease because it would enable it to recover use of the right to use the site if Waste Limited subsequently tried to revoke the right.
A lease is a proprietary right in the land. This means it is enforceable in rem, the right can be recovered. A licence is a personal right, which means the right cannot be recovered if Waste subsequently tri
A buyer and seller enter into an agreement 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?
A. The document is valid because it complies with the requirements for a land contract
B. The document is invalid because it does not comply with the requirements for a land contract
C. The document is valid because it complies with the requirements for a deed
D. The document is invalid because it has not been registered at the Land Registry yet
E. The document is valid because it complies with the requirements of a valid contract for sale at law
B. The document is invalid because it does not comply with the requirements for a land contract
A contract for the sale of land 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.
There is no valid deed as the document has not been intended as a ‘deed’ or delivered. Further, the parties are trying to enter into an contract, rather than the actual transfer of the land.
If this had been validly created, it would grant the buyer an equitable interest in the land called an ‘estate contract’.
You act for the sole buyer of a registered freehold estate. The seller’s solicitor sends you the agreed sale transfer documents prior to exchange and completion of the transaction.
The first document is labelled ‘Contract for Sale’. The second document is labelled ‘TR1’.
Which of the following options correctly describes the legal position about the execution of these documents by your client in order to validly transfer legal title to your client?
A. The first document needs to be signed underhand by your client. It does not need witnessing. The second document does not need to be signed by your client.
B. Both documents need only be signed underhand by your client. They do not need to get their signature witnesses.
C. The first document needs to be signed by your client in the presence of a witness who must attest their signature. The second document needs to be signed underhand by your client. It does not need witnessing.
D. The first document needs to be signed underhand by your client. It does not need witnessing. The second document needs to be signed by your client in the presence of a witness who must attest their signature.
E. Both documents must be executed by your client in the presence of a witness who must attest their signature.
A. The first document needs to be signed underhand by your client. It does not need witnessing. The second document does not need to be signed by your client.
The first document is a contract - it needs to comply with LP(MP)A 1989, s 2 i.e. be in writing, contain all the terms and be signed by both the parties. The buyer and seller’s signatures do not need witnessing, and the parties can sign duplicate contracts, which are then physically exchanged.
The TR1 is a transfer deed. It must comply with LP(MP)A 1989, s 1 i.e. be intended as a deed, signed by the seller in the presence of a witness who attests their signatures and be delivered. To effect a legal transfer of the land, it is not necessary for the buyer to execute the TR1. In practice, the buyer will execute the TR1 if they are entering into any freehold covenants or making a declaration of trust. However, this does not apply on the facts.
A farmer is selling his freehold farm which he acquired in 1979. He has handed the unregistered title deeds to his solicitor, but there is one small field to which he has no deeds. He confirms that he has farmed that field since 1979 without anyone else’s permission. The solicitor has recommended that an application be made to HM Land Registry for voluntary first registration of title to the field.
Which of the following best describes the class of title which is likely to be granted if the field is registered?
a) Absolute.
b) Possessory.
c) Qualified.
d) Good leasehold.
e) No class of title.
b) Possessory.
Possessory title will be given either where the applicant’s title is based on adverse possession or where title cannot be proven because the title deeds have been lost or destroyed.
A solicitor is acting for the buyer of a country cottage built around 150 years ago. Access to the cottage from the nearest public highway is over an unadopted track which has unregistered title. The seller has produced satisfactory evidence to establish that the cottage has the benefit of a prescriptive right of way over the track. However, the registered title to the cottage makes no mention of any such right of way.
Which of the following statements correctly describes the advice which the solicitor should give to the client regarding the access over the track?
a) The right must be completed by registration in the title to the cottage, otherwise it is ineffective at law.
b) The right is not registrable in the title to the cottage as it was created by prescription and can therefore only exist in equity.
c) The right takes effect as a legal easement for the benefit of the cottage even though it is not registered in the title to the cottage.
d) The right takes effect as a legal easement but must be registered in the title to the cottage in order for the benefit to pass to subsequent owners.
e) The right must be registered as a land charge in order to be effective and bind the owners of the unregistered track.
c) The right takes effect as a legal easement for the benefit of the cottage even though it is not registered in the title to the cottage.
A prescriptive easement takes effect as a legal easement even though it has not been registered and the benefit will automatically pass to the successors of the current owner of the property.
Section reference: 2.4.7
A building company is purchasing a plot of development land which it intends to use for residential housing. The land has registered freehold title. The official copy register entries of the title show that the land is registered with a possessory class of title.
Which one of the following statements concerning possessory class of title is correct?
a) It is only granted where the applicant for first registration was able to produce title deeds, but these were not sufficient to show a good holding title.
b) It can be granted only if the applicant for first registration is in actual possession of the land or in receipt of the rents and profits from it (s9(5) Land Registration Act 2002).
c) It has the same effect as absolute title, except that it is subject to the adverse possession of a third party subsisting at the time of first registration.
d) It is a permanent class of title granted at the time of first registration and cannot subsequently be altered.
e) It is only granted in cases where the applicant for first registration was in adverse possession of the land.
b) It can be granted only if the applicant for first registration is in actual possession of the land or in receipt of the rents and profits from it (s9(5) Land Registration Act 2002).
A possessory title can only be granted if, at the time of first registration, HM Land Registry is of the opinion that the applicant is the person in actual possession of the land, or in receipt of the rents and profits of the land (s9(5) Land Registration Act 2002).
A possessory title has the same effect as an absolute title, except that it is subject to any adverse rights existing at the time of first registration.
Section reference: 2.8.6.2
A businessman is proposing to take a short lease of an office suite for a term of four years. The lease is to be at a market rent and with a premium of £500 for the grant of the lease. He wishes to keep the costs low and asks his solicitor whether an oral lease would be sufficient to create a legal lease.
Which one of the following statements best describes whether an oral lease would suffice?
a) An oral lease would be sufficient to create a legal lease because the lease is for a term of less than five years for no premium.
b) An oral lease would not be sufficient to create a legal lease because although it is a short lease there is a premium payable.
c) An oral lease may possibly be sufficient to create a legal lease, depending upon whether or not the landlord’s reversionary title is registered.
d) An oral lease would be sufficient to create a legal lease because the lease is for a term not exceeding seven years and is not therefore registrable at HM Land Registry.
e) An oral lease would not be sufficient to create a legal lease because the term is for a period exceeding three years.
e) An oral lease would not be sufficient to create a legal lease because the term is for a period exceeding three years.
This is because a lease for a term of more than three years, taking effect immediately and reserving the best rent reasonably available, must be made by deed if it is to take effect as a legal lease (s52(1) Law of Property Act 1925). As the lease will not be for a term exceeding seven years, it will not have to be registered at HM Land Registry in order to take effect at law (s27 Land Registration Act 2002). It may, however, be protected by entry of a notice in the register of the landlord’s title, as it is for a term exceeding three years (s33(d) Land Registration Act 2002). However, even if such a notice is not entered, the lease will be protected as an overriding interest (Sch 3, para 4, Land Registration Act 2002).
Section reference: 2.6.2
A solicitor is acting for the buyer of a lodge, which originally formed part of a large estate but was sold off several years ago. The lodge has a registered title, but there is no entry in the register relating to any easements over the remainder of the estate. The buyer’s solicitor raises a pre-contract enquiry about this with the seller’s solicitor, who responds that the lodge has the benefit of any easements implied under s62 of the Law of Property Act 1925.
Which one of the following statements best describes when s62 will operate on a sale of part of an estate?
a) Only where there has been prior diversity of occupation of the land transferred and the land retained.
b) Only where there is no contrary intention expressed in the transfer that s62 is not to operate.
c) Only where the title to the estate is unregistered, because s62 does not apply to registered land.
d) Only where the transfer expressly provides for s62 to operate.
e) Only where there has been no prior diversity of occupation of the land transferred and the land retained.
b) Only where there is no contrary intention expressed in the transfer that s62 is not to operate.
