Land Law - Fundamentals Flashcards
Nature of Land
Other than the physical surface area of the land itself, ownership of land includes…
- The airspace above, “to such height as is necessary for the ordinary enjoyment of the land”.
- The ground below, including mines, minerals and substances.
- Buildings or part of building
- Fixtures and improvements
- Incorporeal Hereditaments such as easements, rents, rights and benefits.
Nature of Land
Other property capable of being owned are…
- Items found on the land. These belong to the landowner, unless he has no knowledge of the item, in which case it belongs to the finder.
- Dead animals.
- Plants
- Water. The landowner owns water running on or over the land. If it is on the boundary of the land, he owns it up to its centre.
Nature of Land
Fixtures vs Fittings
Fixtures are part of the land (“affixed”), whereas fittings (also known as chattels) are not.
Another category is “improvements”. Like fixtures, these are permanent additions, and therefore form part of the land.
Nature of Land
To determine whether an object is a fixture or a mere fitting, two tests are used:
- The degree of annexation
- An item attached to the land is likely to be considered a fixture. (e.g. integrated appliances, kitchen units, sinks.
- A free-standing item is likely to be considered a fitting. (e.g. TV, curtains, white goods)
- The purpose of annexation
- Why has the object been fixed to the land?
- If an object is not strongly attached to the land, it may still be considered a fixture if its purpose is to benefit the land.
Nature of Land: Fixtures and Fittings
The ____ of annexation is the initial test which is final if the item is established to be a ______ but only raises a rebuttable presumption if the item is a ____. That presumption can be rebutted by the key test that takes priority:
- The degree of annexation is final if the item is established to be a fixture. It only raises a presumption of the item is a fitting.
- The purpose of annexation is the key test that takes priority.
If the object was attached to improve the land, it is a …. If it is attached for the better enjoyment of the object it is a ….
- Fixture
- Fitting
Legal and Equitable Rights in Land
Rights in land can be divided into:
a) Estates
b) Interests
A right is legal if it:
2 conditions
a) appears in s.1(1) or s.1(2) Law of Property Act 1925.
b) meets the necessary formalities
If a right falls outside of s.1(1) and s.2 LPA 1925 but meets the necessary formalities, it is …
…an equitable interest.
Section 1(1) LPA sets out the two legal estates:
a) Freehold estate (“fee simple absolute in possession”)
b) Leasehold estate (“term of years absolute”)
IMPORTANT
Section 2 LPA sets out the five legal interests:
a) An easement, right or privilege.
b) A rentcharge
c) A legal mortgage
d) Any other charge not created by an instrument.
e) Rights of entry.
The freehold estate (fee simple absolute in possession) has four characteristics:
- Capable of being inherited.
- Can pass to any class of heir.
- Not determinable or conditional on any event.
- Immediate right to possession (not a future entitlement)
Re. possession vs future entitlement: “A for life and then to B.”A will have the freehold. B’s interest exists only in equity.
Nature of Land
A lease is an estate in land in which the tenant is granted…
Unlike the freehold reversion, a lease cannot…
Leaseholds
…exclusive possession of land for a fixed period.
…last forever.
The lease is carved out of a superior interest (i.e. a freehold or longer lease). It is therefore possible to have more than one estate in relation to the same piece of land.
Nature of Land
Exclusive possession means…
…the ability for the tenant to control the land and exclude everyone from the land, including the landlord.
Nature of Land
There are two types of leases:
- Fixed term
- Periodic.
Nature of Land
Fixed-term leases can be for any period, provided that…
…the maximum duration is certain.
Nature of Land
A periodic lease lasts for a fixed period. After that period…
…the lease extends itself automatically until either the landlord or tenant terminates the lease by notice.
Notice to quit would usually be for the period of the tenancy, i.e. one month’s notice is required for a one month tenancy. For a one year periodic, only 6-months’ notice is required.
What interests are capable of being legal?
5 interests
- Easements and profits
- Rentcharges
- Mortgages
- Interests arising by statute
- Rights of entry
The most important such interests are easements and mortgages.
Interests in land that are capable of being legal
An easement is a right of one landlowner to:
Easements and profits
Make use of another nearby piece of land for the benefit of his own land.
A profit is a right to…
…go on somebody else’s land and take from that land something which exists naturally.
E.g. a right to fish
Easements and profits are only capable of being legal if they are for a duration…
…equivalent to a freehold or leasehold estate.
.i.e. lasting forever (“perpetually”) or for a fixed duration
Easements or profits are not legal if…
…for an uncertain duration.
Legal easements either last forever (as a freehold) or for a fixed duration (as a leasehold)
A rentcharge is a right to…
…receive periodic payment charged on the land.
Only capable of being legal if they are to last forever or for a fixed duration.
A mortgage is an interest over property granted by the ____ to the ____ as security for….
Borrower to lender as security for a debt.
The borrower is the …. while the lender is the ….
Mortgagor, mortgagee.
A right of entry is the right for the landlord to…. or for the rentcharge owner to….
Landlord to forfeit the lease if the tenant breaks the terms of the lease; or the rentcharge owner to reclaim the land if the money owed is not paid.
Equitable interests in land
All property rights are capable of being equitable. What are the most significant ways in which equitable rights in property can be created?
5 ways
- By contract to create or transfer a legal estate or interest
- By trying to gain a legal estate or interest, but failing to comply with formalities.
- By grant of an estate or interest by a person who owns only an equitable right.
- By grant of an estate or interest which can only exist in equity.
- By trust (express or implied)
The defining characteristic of the trust is:
The legal title to the property is separated from the equitable interests.
Who holds the legal title to a trust property, and who enjoys the benefits?
The trustee; the beneficiary.
Adil is the freehold owner of a property. He places the property in trust for his five-year-old daughter Maryam. Adil is the …. Maryam is the ….
Trustee; beneficiary.
An express trust can be created in two ways:
(a) self-declaration
(b) declaration + transfer.
There are two forms of implied trusts:
- Resulting
- Constructive
When does a resulting trust arise?
When a person who is not the legal owner contributes directly to the purchsae price of the property.
Resulting Trusts
When a person who is not the legal owner contributes directly to the purchase price of the property, how is that person’s interest quantified?
In proportion to their contribution.
Dolly is the freehold owner of the property. Prior to acquisition, Dolly’s mum Enid paid the 10 per cent deposit. Who holds the legal estate? Who holds the equitable interest and to what proportion? What two roles does Dolly have?
Dolly holds the legal estate.
Dolly holds 90% of the equitable interest. Enid holds 10% of the equitable interest.
Dolly is both trustee and beneficiary.
When does a constructive trust arise?
When a person who is not the legal owner contributes to the property other than by direct financial contribution at the time of purchase
Give two examples of a constructive trust arising.
- When a non-owner contributes to the mortgage payments.
- Substantial improvements to the property.
How is an interest arising out of a constructive trust quantified?
By taking into account the parties’ conduct, any financial contributions, any non-financial contributions.
Which type of trust is more appropriate in relation to trusts of the home?
The constructive trust.
Amanda is the freehold owner of the property. Five years ago, her partner Dan moved into the property and has since paid half the mortgage payments. Does Dan have an interest in the property?
Yes. His conduct is sufficient to infer a common intention that he holds a beneficial interest under a constructive trust.
Name 3 interests that are equitable by nature.
They are equitable by nature as they do not appear in s.1(1) or s.(2) LPA 1925
- A beneficial interest under a trust.
- A restrictive covenant.
- An estate contract.
Between exchange of contracts and completion, an estate contract arises in equity for the buyer. It includes contracts for: the sale of a legal estate; an option; a right of pre-emption; the grant of a lease; the grant of an easement/profit.
What are “home rights”? What two conditions are required for the right to arise?
Statutory right of occupation of the matrimonial home for a non-owning spouse/civil partner.
Two conditions:
(a) The parties are legally married or civil partners (and not divorced)
(b) the home is, has been or is intended to be the matrimonial home.
Home rights do not create an interest in land. They also exist independently of any beneficial interest under trust.