Chapter 1: Nature and Principles

Question 1

What is real property?

Answer 1

Generally immovable. The land itself & relates third party rights in the land.

Question 2

What is personal property?

Answer 2

anything which is not ‘real property’ (can be moved)

Question 3

why are the categories of land in law?

Answer 3

real property - physical form (tangible)

intangible (right of way, right to receive rent)

mines/ minerals

airspace

buildings/ part of buildings

Question 4

what ‘land’ is considered to be attached to the surface?

Answer 4

plants
trees
flowers
dead animals
water (NOT flowing)

Question 5

who owns coal/ natural gas/ oil

Answer 5

the crown

need permission from authorities to take

Question 6

what airspace dos the owner of land have a right to?

Answer 6

necessary for the ordinary use and enjoyment of his land

normal everyday functions

No rights as high as aircraft can fly

Question 7

what is a fixture?

Answer 7

form part of the land and transferred automatically when the land is sold e.g kitchen/ bathroom

(removable by demolition = fixture)

Question 8

what is a chattel?

Answer 8

personal possessions with NO CONNECTION to the land. Remain in possession and removed and by the owner when the land is sold/ transferred

Question 9

what is the test to determine chattel or fixture?

Answer 9

Degree of annexation:
rest on its own weight?
extent of damage to remove is significant = fixture.

purpose of annexation:
intention to be permanent = fixture but for convenience/temporary improvement = chattel

Question 10

who is the absolute owner of all land?

Answer 10

crown

Question 11

in theory what do landowners own?

Answer 11

estate in the land
(a tenure)

Question 12

what are the 2 types of legal estates

Answer 12

Freehold - forever ownership
Leasehold - fixed term ownership

Question 13

what does it mean to have legal ownership?

Answer 13

title deed owner - legal right to sell or transfer the land

Question 14

what is equitable ownership?

Answer 14

a right to benefit from the land eg take money from income/ assets or when land is sold

Question 15

when can someone with an equitable interest sell/ transfer land?

Answer 15

if they obtain a court order

Question 16

what is a third party right?

Answer 16

the right is held IN the land and binds anyone who legally owns the land

Question 17

what are the two types of legal transfers of land?

Answer 17

Purchase transfer
Will transfer

Question 18

how is a legal estate created?

Answer 18

by deed

must be clear it is a deed

must be executed as a deed (written and witnessed)

registered at the land register

Question 19

what are the 4 types of legal interest in land?

Answer 19

easements

legal mortgages

rentcharges

rights of entry

Question 20

what is an easement?

Answer 20

the right to use another persons land for a specific purpose

Question 21

what is a legal mortgage?

Answer 21

the lender has the right to take possession if the borrower fails to repay (property is collateral).

Question 22

what is a rent charge?

Answer 22

annual payment by a freehold owner (forever owner) to a third party with no other legal interest in the property.

Question 23

what is a right of entry?

Answer 23

legally take or resume possession of a property (tenant breaches term of a lease).

Question 24

when will an interest in land usually be equitable?

Answer 24

when it is not 1 of the 4 categories or it is not legally registered

Question 25

how is an equitable interest transferred?

Answer 25

must be in writing and signed by the person transferring or in a will.

Question 26

what is a restrictive covenant?

Answer 26

rights over the land by third parties - a promise to not do something. Restrict / limit actions in contract.

Question 27

what is an example of a restrictive covenant?

Answer 27

building scheme/ housing estate subject to the same promise

Question 28

when can equitable interests arise by way of trust?

Answer 28

express trust (under a deed) constructive resulting proprietary estoppel

Question 29

when will the court find a constructive trust?

Answer 29

someone is not the legal owner but contributes substantially to necessary household expenses (mortgage/ improvements).

Question 30

how will the court determine a constructive trust?

Answer 30

look at conduct of both parties to see common intention any promises/ discussions to share

Question 31

when does a resulting trust arise?

Answer 31

when someone contributes to the purchase price - the legal owner will hold on trust (shares proportional to contribution)

Question 32

what type of trusts are similar and which will the court favour /why?

Answer 32

PE & constructive trusts are SIMILAR. Preferred option is a CONSTRUCTIVE TRUST (what the parties actually intended)

Question 33

what is the effect of a resulting trust when land is sold?

Answer 33

equitable owner can take money from the sale of the property.

Question 34

what is proprietary estoppel?

Answer 34

Prevent a party going back on its promise or taking advantage on another misbelief of their rights in the land.

Question 35

what are the requirements for proprietary estoppel?

Answer 35

Promise made Reliance on the promise Acted to their detriment due to reliance in the promise

Question 36

what is an estate contract?

Answer 36

parties have exchanged contracts of sale = legal binding protects the buyer before completion - paid money but not in legal possession equitable estate in contract interest creates a right to acquire land on completion day