Nature of Land

Question 1

Are fixtures part of the land according to the definition of land?

Answer 1

Yes

Question 2

Test for determining whether object is a fixture or chattel?

Answer 2

1) The degree of annexation;
2) The purpose of annexation.

Question 3

Explain the degree of annexation test

Answer 3

Refers to how firmly affixed the object is to the land. if the object cannot be removed without causing significant damage to the land, this indicates its a fixture not chattel.

Question 4

The degree of annexation is an initial test that…

Answer 4

Raises presumption the item is a fixture but this presumption can be rebutted.

Question 5

Explain the purpose of annexation test

Answer 5

Asks why has the object been attached to the land.

Effectively, if object was attached to land to enhance the land or create permanent improvement, it is a fixture. if attached to obtain better enjoyment of the object itself, it is a chattel.

Question 6

Name examples of fixtures

Answer 6

• kitchen units
• bathroom fittings
• items installed by a builder

Question 7

Name examples of chattels

Answer 7

• free standing cooker
• ornamental items (eg pictures)
• carpets, curtains and rugs

Question 8

Items which are part of the overall architectural design are….

Answer 8

usually deemed fixtures despite ease of removal.

Question 9

Are fixtures and chattels included in the sale of a property?

Answer 9

• fixtures usually included in the sale.
• chattels usually not contained in the sale

Question 10

Property rights are either….

Answer 10

legal or equitable

Question 11

Right will be legal if

Answer 11

• it appears in s1(1) or 1(2) of LPA 1925; and
• meets necessary formalities

Question 12

Equitable rights are

Answer 12

anything which falls outside list in s1(1) and 1(2) of LPA 1925. note that equitable interests also need to meet necessary formalities.

Question 13

S1(1) LPA 1925 provides there are two types of estates that can be legal…

Answer 13

• estate in fee simple absolute in possession (freehold)
• term of years absolute (leasehold)

Question 14

What is a fixed term lease?

Answer 14

a lease for any period of time, provided the maximum duration is certain (*eg 99 years, 2 academic years, 7 days etc).

Question 15

What is a periodic lease?

Answer 15

a lease for a fixed period, which extends itself automatically until one party terminates it (eg if monthly it will extend by one month every month. notice of 1 month would likely be required to terminate it).

Question 16

S1(2) LPA 1925 tells us that the following interests in land are capable of being legal provided they meet the relevant formalities. These are:

Answer 16

-Rentcharges
-Easements
-Charges by way of legal mortgage
-Rights of entry
-interests in land which arise by operation of statute

Question 17

Describe rent charges

Answer 17

• right to receive periodic payment charged on the land.
• only capable of being a legal right provided:
  a) they are perpetual or
  b) for fixed duration.

Question 18

Define easement

Answer 18

right of one landowner two make use of another nearby piece of land for the benefit of their own land (eg right of way).

Question 19

Define profits

Answer 19

right to go on someone less land and take from that land something which naturally exists (eg right to fish)

Question 20

Person holding legal title (freehold or leasehold) is known as:

Answer 20

a trustee

Question 21

Resulting trust (in relation to land) whereby a person who is not legal owner, contributes directly to the purchase price of the property, means….

Answer 21

that person acquires an interest propionate to their contribution, and therefore has an equitable interest in the share of the property (ie if contributed 10% beneficial interest in 10% of the value of the property).

Question 22

Constructive trust (relation to land)…

Answer 22

• person who is not legal owner makes contribution to property other than financial at time of purchase (eg mortgage payments, making substantial improvements to the property). they therefore have a beneficial interest in the land (but is not proportionate to contribution made).

Question 23

Is interest under constructive trust in property proportionate to contribution?

Answer 23

No.

Question 24

Name three interests in land which are equitable in nature.

Answer 24

1) beneficial interest under a trust
2) restrictive covenant
3) estate contract

Question 25

Is a licence and interest in land? does a licence bind a successor in title?

Answer 25

No. No - binding only between original parties.

Question 26

Give two examples of a licence.

Answer 26

1) temporary occupation as a lodger 2) right of access

Question 27

Can a licence be revoked at any time?

Answer 27

yes.

Question 28

S52(1) LPA 1925 provides a deed is required to....

Answer 28

create or transfer legal estate/ interest in land.

Question 29

What does s1 of LP(MP)A 1989 set out?

Answer 29

requirements of a deed to transfer legal estate/ interest in land. these are: - must be in writing; - make clear on its face it is a deed; - signed by both parties and properly witnessed; and - delivered.

Question 30

Explain how a parol lease is created.

Answer 30

- They are for a fixed term off three years or less; - Rental payments are at best rate possible (ie market rate); - Possession can be instant (tenant can immediately possess and enjoy the land). - Landlord must not charge a fine/ premium (defined as a line off capital sum).

Question 31

S2 LPMPA 1989 - contracts for the creation/ transfer of rights in land must:

Answer 31

- be in writing; - incorporate all expressly agreed terms in document; - be signed by or on behalf of both parties.

Question 32

Examples of transactions requiring s2 LPMPA 1989 formalities to be complied with are:

Answer 32

a) sale of freehold or leasehold b) grant of lease; c) creation of an option; d) creation of an easement (unless specific type which does not need formalities).

Question 33

A contract to create or transfer a legal property right will create an equivalent equitable property right provided:

Answer 33

claimant has clean hands.

Question 34

An the absence of a deed, a contract to create a legal lease will:

Answer 34

create an equitable lease (same applies to easements).

Question 35

What are the requirements for a legal easement?

Answer 35

It must be granted forever or for a fixed term (ie leasehold or freehold) and be created by deed (unless the parol lease exemption applies).

Question 36

Give the requirements for an equitable else to be created.

Answer 36

1) In writing; 2) Signed by both parties and contains all terms;

Question 37

What right does the Family Law Act 1996 create in respect of non-property owning spouses?

Answer 37

The spouse will have a right of occupation in the property regardless of the fact they have no legal or equitable interest. This is referred to as home rights.

Question 38

Light fittings are usually deemed as fixtures. What could indicate a light fitting is a chattel?

Answer 38

If the light fitting is attached by screws it is likely to be deemed a chattel (TSB Bank v Botham).