Ownership & Possession

Question 1

What is Tenure?

Answer 1

Tenure is the conditions under which land or buildings are held or occupied.

Question 2

What is Property?

Answer 2

Property is everything that can be owned.

It includes:

• Land/Objects = tangible property
• Rights = intangible property

Question 3

What is Real Property?

Answer 3

Real Property is also known as ‘Realty’ and is immovable property.

It includes:

• Land and what is attached to it
• The surface of the land and most things growing on it and anything permanently fixed to it

Question 4

What is Personal Property?

Answer 4

Personal Property is movable items that are not permanently attached to the Real Estate.

It includes:
- Tangible Items that a person can own/touch/move

• Intangible Items = ‘Choses in Action’

Question 5

What are ‘Choses in Action’?

Answer 5

‘Choses in Action’ are rights and don’t have a physical presence.

The owner doesn’t have physical possession, but does have the right of legal action.

They can be:

• company shares
• intellectual property
• trademarks
• patents
• goodwill
• debts and cheques

Question 6

What is Ownership?

Answer 6

Ownership is having legal title to the property.

Question 7

List the ways Ownership can be obtained.

Answer 7

• by purchase
• by gift
• by will
• by establishment of a trust
• by operation of law

Question 8

Ownership grants a person certain rights and obligations over property.

List some rights that ownership grants.

Answer 8

• control use of the property
• give possession to another
• benefit from the property (rent)
• transfer ownership or sell the property
• exclude others from the property

Question 9

What is Possession?

Answer 9

Possession is the right of control over a property and usually includes the right of use.

Question 10

When does Possession take effect?

Answer 10

Possession happens at the time of settlement when the buyer takes ownership of the property.

Question 11

What is a Lease?

Answer 11

A Lease is a registrable interest in land.

Question 12

Define Lease under the Property Law Act 2007.

Answer 12

A lease of property, whether registered or unregistered, and includes a short-term lease and an agreement to lease.

Question 13

What are the conditions of a Short-Term Lease?

Answer 13

Under Section 207 of the Property Law Act 2007, a Short-Term Lease must:

• commence no later than 20 working days after the date of the contract
  AND
  -be for a term of 1 year or less OR
  -be a periodic tenancy for periods of 1 year or less OR
  -be a statutory tenancy
  (terminable at will under section 210)

Question 14

What is an Agreement to Lease?

Answer 14

An Agreement to Lease is used for Fixed Term Leases.

Question 15

Do Fixed Term Leases have to be for a certain term?

Answer 15

No.

The landlord and tenant can now agree that the lease can be terminated on the occurrence of a certain event, rather than a certain term.

Question 16

What are the conditions around a Fixed Term Lease that terminates on the occurrence of a certain event?

Answer 16

A Fixed Term Lease that terminates on the occurrence of a certain event:

• can only last for a maximum of 10 years
  AND
• cannot be registered on the Title under the Land Transfer Act 1956 (and section 212 of the PLA07)

Question 17

What is the purpose of a Licence to Occupy?

Answer 17

A Licence to Occupy creates a right to occupy land.

E.g
A retirement village

In exchange for a fee, and subject to the terms and conditions set out in the Licence, an elderly person has the right to occupy one of the units in the villiage.

Also, often the booths that occupy central parts of the mall operate under a Licence to Occupy.