Land - chapter 1

Question 1

Nature of land

What’s the degree of annexation test? (3)

Answer 1

• is something ‘firmly affixed’ to the land? consider:
• can object be removed without causing significant damage to the land?
• if firmly affixed, raises a rebuttable presumption that the item is a fixture

Question 2

Nature of land

Light fittings attached by screws? - fixture or chattel?

Answer 2

Likely to be a chattel

Question 3

Nature of land

What’s the purpose of annexation test?

Answer 3

Something will be a fixture if attached to the land:
a) enhance it;
b) create a permanent improvement to it; or
c) make it useable as what it is

Is it for the ‘better enjoyment of the land’?

Question 4

Two tests for determining whether something’s a fixture or a fitting

Answer 4

Degree of annexation
Purpose of annexation

Question 5

Nature of land

Gas fire more likely to be a chattel or a fixture?

Answer 5

Likely to be a chattel if fitted purely for its own sake

Question 6

Nature of the land

Exception to the purpose of annexation test?

Answer 6

If something that would usually be a chattel forms part of an ‘overall architectural design’

Question 7

Rights in land

Three questions to determine whether an owner is bound by a third party right in land?

Answer 7

1. What’s the nature of the interest?
2. Is the right legal or equitable?
3. Has the right been protected?

Question 8

Rights in land

Which rights in land are capable of being equitable?

Answer 8

All of them

Question 9

Rights in land

When will a right in land be legal?

Answer 9

If it:
a) is capable of being legal (i.e. appears in section 1 of the LPA); and
b) meets the necessary formalities

Question 10

Rights in land

What two estates are capable of being legal? (Long and short names)

Answer 10

1. Estate in fee simple absolute in possession (freehold)
2. Term of years absolute (leasehold)

Question 11

Rights in land

Can a freehold estate be inherited?

Answer 11

Yes

Question 12

Rights in land

What happens to a freehold estate if an owner dies intestate and without an heir?

Answer 12

Reverts to the Crown

Question 13

Rights in land

What is a periodic lease?

Answer 13

One which renews automatically until terminated by notice

Question 14

Rights in land

Features of a leasehold estate (3)

Answer 14

• Tenant granted exclusive possession of land for a fixed period of any duration
• Carved out of a ‘superior interest’ - e.g. a freehold or a longer lease
• Tenancy can control the land and exclude everyone else from it (including landlord)

Question 15

Rights in land

What’s a commonhold?

Answer 15

Alternative to leasehold - buyer has a freehold interest in a flat, and common areas are managed by a commonhold association, run by commonhold owners

Question 16

Rights in land

Broadest terms - what are the two key rights in land?

Answer 16

Estates and interests

Question 17

Rights in land

Which interests are capable of being legal?

Answer 17

Those in s1(2) LPA

Question 18

Rights in land

Six legal interests in land

Answer 18

1. Easement
2. Profits
3. Rent charge
4. Charge by way of legal mortgate
5. Interests which arise by operation of statute
6. Rights of entry

Question 19

Rights in land

Key requirement for an easement, profit, or rent charge to be legal?

Answer 19

Only capable of being legal if forever, or for a fixed duration (i.e. can’t be uncertain in duration)

Question 20

Rights in land - interests

What’s a profit?

Answer 20

Right to go on somebody else’s land and take something that exists naturally, e.g. fishing rights

Question 21

Rights in land - interests

What’s an easement?

Answer 21

Right of one landowner to make use of another nearby piece of land for the benefit of their own

Question 22

Rights in land - interests

What’s a rent charge?

Answer 22

Right to receive a periodic payment charged on the land

Question 23

Rights in land - interests

What’s an interest arising by operation of statute?

Answer 23

By operation of an Act of Parliament. Owner of the right will be some form of government agency

Question 24

Interests in land

What’s a right of entry? (2)

Answer 24

Either:
1. Landlord’s right to forefeit (i.e bring to a premature end) the lease if tenant breaks terms; or
2. Rentcharge owner’s right to reclaim land if money owed is not paid

Question 25

# Rights in land Six ways in which an equitable interest will arise

Answer 25

1. By contract to create or transfer a legal estate or interest 2. By failure to comply with formalities to create a legal estate/ interest (i.e. a deed) 3. By grant of an estate/ interest by a person who has only an equitable right 4. By grant of an estate or interest which can only exist in equity 5. By an express trust 6. By an implied trust (resulting or constructive)

Question 26

# Rights in land What's a resulting trust over land?

Answer 26

When a person who is not the legal owner, contributes directly to the purchase price of the property. **They acquire an interest proportionate to their contribution**.

Question 27

# Rights in land What's a constructive trust in land? How will interest be quantified?

Answer 27

When someone who is not the legal owner makes a contribition to the property other than a direct financial contribution at the time of the purchase. Can include contributing to the mortgage payments/ making substantial improvements. Quantified taking into account all the circumstances: parties' conduct, financial contributions/ any non-financial contributions

Question 28

# Rights in land What's an estate contract?

Answer 28

A contract to convey or create a legal estate **including an option to purchase.**

Question 29

# Rights in land What right does a buyer have after exchange and prior to completion?

Answer 29

Once contracts are exchanged, buyer holds an estate contract, which is an equitable interest)

Question 30

# Rights in land Home rights 1. Meaning 2. Basis 3. Interest? 4. Trusts?

Answer 30

1. Statutory right of occupation of the matrimonial home for a non-owning spouse or civil partner. Non-owning means that they're not the holder of the legal esate 2. Section 30 of the Family Law Act 1996 3. Do not create an interest in land 4. Exist independently of any equitable interest arising under a trust (whether express or implied)

Question 31

# Rights in land Home rights - will arise provided that?

Answer 31

a) the parties are legally married/ civil partners b) the home is, has been, or is intended to be the matrimonial home

Question 32

# Rights in land Statutory home rights - how are they protected in registered land?

Answer 32

Must be protected by an entry of a notice in the charges register. **Cannot** take effect as an overriding interest

Question 33

# Rights in land What is a license? What is it not? Binding?

Answer 33

Personal right - not an interest. Binding only between the original parties.

Question 34

# Formalities How must a legal estate or interest be created?

Answer 34

By deed

Question 35

# Formalities What are the five requirements for a deed? Source?

Answer 35

LP(MP)A * In writing * Clear on the face of it that it is a deed * Signed * Witnessed * Delivered

Question 36

# Formalities What is an exception to formality requirements for a lease?

Answer 36

Parol lease exception

Question 37

# Formalities What is the parol lease exception?

Answer 37

1. Lease must be for three years or less (can include a periodic lease where period is less than three years) 2. Tenant must have immediate right to possess and enjoy the land 3. Must be for market rent 4. Landlord must not charge a fine or premium

Question 38

# Formalities When will a contract for the creation of transfer of rights in land be used? (4) What is its effect?

Answer 38

e.g. 1. sale of a freehold or lease 2. grant of a lease 3. creation of an easement 4. creation of an option Once contract is complete, buyer has an equitable interest.

Question 39

# Formalities What are the formalities for a contract for the creation of transfer of rights in land? Source?

Answer 39

s 2 LP(MP)A Contract, and any variation must: a) be in writing b) incorporate all the expressly agreed terms in one document (or in each, if contracts exchanged) c) be signed by or on behalf of all the parties

Question 40

# Formalities What are the formalities for grant of a right which can only exist in equity? Example of such a right?

Answer 40

Must be created by a signed written document. e.g. a restrictive covenant

Question 41

# Formalities What are the formalities for grant of a right by a person who owns only an equitable right? Example of such a right?

Answer 41

Must be created by a signed written document. i.e. when someone who has a beneficial interest is transferring it.

Question 42

# Formalities How can an equitable right be created by contract to create or transfer a legal estate or interest?

Answer 42

1. There must be a contract 2. The contract must comply with LP(MP)A 2. Remedy of specific performance must be available **A contract to create or transfer a legal property right will create an equivalent equitable property right** (as long as claimant has clean hands)

Question 43

# Formalities When will remedy of specific performance be available?

Answer 43

Clean hands

Question 44

# Formalities How can an equitable right be created by trying to grant a legal estate or interest but failing to use a valid deed? When does this occur?

Answer 44

1. Parties do not deliberately enter a contract - they fail to use a valid deed, and the court finds a contract so that the transaction doesn't fail entirely. 2. Must be: a) a contract b) which complies with s 2 LP(MP)A c) clean hands

Question 45

# Formalities How is an express trust over land created? Source?

Answer 45

By a signed written document. s 53(1) LPA

Question 46

# Formalities What is an interest in land requiring no formalities at all? Types?

Answer 46

Implied trusts: they arise simply as a result of the conduct of the parties. Resulting or constructive.

Question 47

# Rights in land Overall approach to determining whether a right exists (5)

Answer 47

1. What is the relevant interest? 2. Is it capable of being legal? 3. Have the formalities been complied with? 4. If interest is capable of being legal, but there is no deed, will equity intervene? 5. Has a right been created which does not rely on formalities, e.g. home rights?