Registered and Unregistered land MCQs Flashcards
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?
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.
Your client should accept the licence because it is capable of being enforced against third parties should Waste Limited sell the site
Your client should accept the licence because it would give it a proprietary right in the land
Your client should accept the lease because it would give it a personal right in the land
Your client should accept the lease because it will entitle R to sue for breach of contract should Waste Limited breach the terms
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.
This is correct. 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 tried to revoke it, because a personal right is enforceable in personam.
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?
The transfer deed is of no effect because the client has not signed the document
The client holds the legal title but it will revert back to the seller if not registered within two months
The transfer deed is of no effect because it does not include all of the terms expressly agreed by the parties
The transfer will not take effect at law until title is registered with the Land Registry
The seller holds the property on trust for the client until the transfer is registered with the Land Registry
The client holds the legal title but it will revert back to the seller if not registered within two months
This is correct. 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?
The purchaser holds the legal title to the property
The purported deed is defective and the purchaser has no interest in the property
The purported deed is defective but a contract may be construed from the failed grant
The purchaser holds the legal title but it will revert back to the seller if not registered within two months
The transfer will not take effect at law until title is registered with the Land Registry
The transfer will not take effect at law until title is registered with the Land Registry
This is the best answer. The transfer must be completed by registration to take effect at law. See LRA 2002, s27(2)(a) and s27 (1).
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?
Both documents must be executed by your client in the presence of a witness who must attest their signature.
Both documents need only be signed underhand by your client. They do not need to get their signature witnesses.
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 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.
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.
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.
This correctly the legal position. 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 landlord and tenant enter into contract for lease. They enter into a written document, which they both sign. The contract contains all the terms by reference to the agreed form of lease.
Which of the following options correctly describes the validity of this document?
The document is valid because it complies with the requirements for a land contract
The document is invalid because it has not been registered at the Land Registry yet
The document is valid because it complies with the requirements for a deed
The document is valid because it complies with the requirements of a valid contract for sale at law
The document is invalid because it does not comply with the requirements for a land contract
The document is valid because it complies with the requirements for a land contract
This is correct. A land 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 a valid contract as it complies with all these requirements. Incorporation of all the agreed terms can be by reference, which is common practice, and has occurred here.
This contract for lease grants the tenant an equitable interest in the land called an ‘estate contract’.
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.
Your client recently entered into a contract for lease for a unit in a shopping centre. The written contract was signed by both the landlord and your client and contained all the agreed terms.
Which of the following options describes the interest yours holds in the shopping centre?
An equitable easement
A legal easement
A restrictive covenant
An estate contract
An interest in a trust of land
An estate contract
This is correct. An estate contract is a contractual right to an estate in the land. Here, your client has a contract for a leasehold estate. It has been validly created as it complies with LP(MP)A 1989, s 2.
Your client owns the freehold to wine bar with a popular roof terrace. The adjoining property is a shop, which sells drones. The shop owner frequently flies the drones above the roof terrace to demonstrate them to customers, to the annoyance of your client and their wine bar customers. Your client wishes to apply for an injunction to prevent the shop owner from trespassing on the land.
Which statement is the best advice for your client as to their chances of success in the proceedings?
Your client is unlikely to be successful as the drone is not causing any physical damage to their land
Your client is likely to be successful as a freehold estate extends up to the heavens above
Your client is unlikely to be successful as the drone would be classed as being in the upper airspace
Your client is unlikely to be successful as the Civil Aviation Act 1982, s 76 grants immunity from trespass for aircrafts
Your client is likely to be successful as the shop owner is trespassing into your client’s lower airspace
Your client is likely to be successful as the shop owner is trespassing into your client’s lower airspace
This is correct. A freehold estate includes the ‘lower’ airspace. This is defined in Bernstein v Skyviews [1978] as the height which is necessary for the ordinary use and enjoyment of the land. The ordinary use and enjoyment of this land would include the peaceful enjoyment of the roof terrace.
The owner of a registered freehold property granted a legal mortgage in favour of a lender as security for a loan. The owner built a summer house in the property’s garden in which they regularly spend time working from home.
In which of the following scenarios is the summer house likely to be a chattel which does not form part of the mortgaged property?
The summer house complements the design of the rest of the garden.
The summer house has its own water supply.
The summer house is a moveable structure.
The summer house would be destroyed if it were removed from the land.
The summer house is not specified as forming part of the security in the mortgage agreement.
The summer house is a moveable structure.
This is correct. After considering the degree of annexation and purpose of annexation tests, if the summer house can be moved or removed without being damaged or destroyed then a court is likely to hold it is a chattel as per the case of Elitestone v Morris (1997).
A landlord and tenant enter into contract for lease. They enter into a written document, which they both sign. The contract contains all the terms by reference to the agreed form of lease.
Which of the following options correctly describes the validity of this document?
The document is invalid because it does not comply with the requirements for a land contract
The document is valid because it complies with the requirements of a valid contract for sale at law
The document is valid because it complies with the requirements for a deed
The document is valid because it complies with the requirements for a land contract
The document is invalid because it has not been registered at the Land Registry yet
The document is valid because it complies with the requirements for a land contract
This is correct. A land 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 a valid contract as it complies with all these requirements. Incorporation of all the agreed terms can be by reference, which is common practice, and has occurred here.
This contract for lease grants the tenant an equitable interest in the land called an ‘estate contract’.
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.
Last year, a land owner sold part of their land to a buyer. In the transfer deed, the buyer promised to only use the land as a single dwelling house and for no commercial or business use.
Which of the following options describes the interest the land owner holds in the land transferred?
A restrictive covenant
An estate contract
An interest in a trust of land
An equitable easement
A legal easement
A restrictive covenant
This is correct. A restrictive covenant is a promise not to do something in respect of the land. The buyer enters into a covenant in the transfer deed by promising to only use the land for a single dwelling house and for no commercial or business use. This a common restrictive covenant.
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 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 had an interest in the land but this has been overreached, so the question of whether B is in actual occupation is irrelevant.
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. 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, so remains in the land. However it will not bind C as B is not in actual 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.
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.
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 takes the land free of the right of way because it has not been protected by a notice
F is bound by the right of way as it is an overriding interest
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.
F takes the land free of the right of way as it is a registrable disposition but has not been substantively registered
F takes the land free of the right of way because it has not been protected by a notice
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).
