Basics

Question 1

Characteristics of Freeholds

Answer 1

Best form of ownership. Fee simple absolute in possession. Lasts until the owner dies with no heirs. Can use, sell, gift the property as they wish.

Question 2

Characteristics of Leasehold

Answer 2

Term of years absolute. Granted by someone who has an estate in land (freehold or leasehold) to someone else for a period of time. The requirements for a lease are certainty of term and exclusive possession BUT NOT RENT.

Question 3

Legal Interests in Land

Answer 3

(1) Legal mortgage
(2) legal easement granted for a time equal to freehold or leasehold
(3) Right of forfeiture.

Question 4

Equitable Interests in Land

Answer 4

(1) Positive and restrictive freehold covenants
(2) Land contracts
(3) easements granted for less than equivalent to a freehold or leasehold.
(4) Puisne mortgage
(5) Interest in a trust in land

Question 5

Lease Formalities

Answer 5

Contract (in writing, incorporating all terms + signed by both parties) + deed (clear as deed on face, witnessed, attested, delivered).
For legal lease terms of less than 3 years, need not use a deed to convey it if it takes effect in possession immediately, there is no fine or premium and granted at best market rate.

Question 6

If lease formalities not complied with/inherently equitable lease

Answer 6

Tenant has equitable lease if short lease exception doesn’t apply and they have contract in writing incorporating all terms and signed by both parties + remedy of specific performance is available.

Question 7

What are the registration requirements for different leases?

Answer 7

Lease for 7+ years = must register to make it legal.
Least for between 3 and 7 years term = need not be registered to be legal, takes effect as an overriding interest.

Question 8

Essentials of a Lease

Answer 8

Certainty of term (must be defined by reference to clear, specific term) + exclusive possession (for residential, means asking whether there is unrestricted access by landlord, sharing clause or relocation clause), for businesses, do they retain sufficient degree of control?

Question 9

What is Land?

Answer 9

(1) minerals and ground below up to 300m deep
(2) Air space up to height that is necessary for the reasonable use and enjoyment of the property
(3) corporeal hereditaments (fixtures but not chattels).

Question 10

Test for Fixtures vs Chattels

Answer 10

(1) Degree of Annexation Test = raises a presumption that the more attached to the land the thing is, the more likely it is to be a fixture. If cannot be removed without being destroyed/demolished = fixture. If it has become part of the architectural design of the land = probably a fixture.
(2) Purpose of Annexation = more important test and can rebut the presumption. If it is for use and enjoyment of the land, to add value or amenity in some way, likely to be a chattel. If intended to be permanent addition, more likely to be fixture. Examples of Chattels = kitchen appliances, paintings, curtains and other decoration.

Question 11

Freehold Transactions

Answer 11

When deed of transfer delivered (dated) for unregistered land, legal title passes at this point, triggering a requirement to register the land for the first time. Must then register land at Land Reg within 2 months months of completing deed or title reverts back to seller (ss 4 and 6 LRA 2002).

For registered land, title passes at the point that the buyer registers the deed at the Land Registry.