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distinction level land law revision notes

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  • May 23, 2021
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  • 2020/2021
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Land W1 – Introduction to Estates and Third Party Interests STATUTORY RIGHTS –
S.30 Family Law Act 1996
FIXTURES AND CHATTELS

Fixtures: items that are part of the land and
§ Rights which arise from statute are not are included in the sale of the land
LEGAL EQUITABLE STATUTORY NO INTEREST legal or equitable
§ The key right is the ‘home right’ under Chattels: removeable, personal possessions
Freehold Estate contract FLA 1996 Right Bare licence s.30 that do not form part of the land
Estates




§ Although spouses may live together in
Restrictive the matrimonial home, it may be that § If the items are listed in the sale contract,
Leasehold Contractual
covenant only one of them owns the legal estate, there is no issue
licence
i.e. the conveyance was in the name of § If the item is not listed, consider the tests
Equitable only one of them. below
Legal Easement
easement § Parliament has given the non-owning
spouse certain rights (now known as THE TEST – FIXTURE OR CHATTEL?
Legal mortgage Express trust ‘home rights’), principally a right of
Berkley v Poulet
occupation as against the other spouse.
Parol lease Implied Trust (1) Method and degree of annexation
TO QUALIFY – PERSON MUST BE: (2) Purpose of annexation

a. Legal married to the legal owner
1. METHOD/DEGREE OF ANNEXATION
b. The legal owner must be alive
DEFINITION OF LAND : THIRD PARTY RIGHTS c. the home is, has been or is intended to
Section 205(1)(ix) – Law of Property Act 1925 s.1(2) LPA 1925 § Looks at the degree of attachment -
be the matrimonial home requires there to be a physical attachment
§ "“Land” includes the physical land, buildings and
LEGAL RIGHTS - to the land
fixtures (corporeal hereditaments) and rights LICENCES § If it is attached, how firmly attached is it?
over the land (incorporeal hereditaments)” Easements: rights or privileges over land for an interest
Licence: authorisation to do something § If the item is fixed, then this Raises a
equivalent to freehold or leasehold (term of years prima facie result – presumption that it is
LAND AND AIRSPACE on someone’s land you wouldn’t normally
absolute) – s.1(2)(a) a fixture
Bernstein of Leigh v Skyviews & General Ltd be allowed to do
§ If it is moveable or resting on its own
§ Held that land only extends to the lower Lease: is a contract between two parties where one party weight, it’s a chattel
§ These are not actually an interest in
airspace – the part necessary for the conveys land for a specified period of time in return for § The damage argument – causing serious
land (Thomas v Sorrell) they just
landowner’s ordinary use and enjoyment of the payment – key word is ‘exclusive possession – s.1(2)(b) damage supports the argument that it is a
prevent trespassing
land fixture
Legal mortgage: an interest in land given as security for a § E.g. letting a child onto your property
§ Don’t have to have major damage for it to
loan – s.1(2)(c) to retrieve a ball
be a fixture
THE CONCEPT OF AN ‘ESTATE’ TWO TYPES OF LICENCE
§ Technically, people don’t own land, they own a EQUITABLE RIGHTS - 2. PURPOSE OF ANNEXATION
period of time in which to enjoy the land s.1(3) LPA 1925 Bare licence:
§ There is no consideration § Looks at the reason for annexing the
Estate: a right to enjoy possession of land for a § If an estate/interest in land doesn’t fall within in s.1(1) or § Allows you to enter the land and can be chattel
period (2) LPA, it can only take effect in equity revoked at any time § Is it part of the overall design/there to
§ Automatically revoked if the licensor enhance the building?
Rights of beneficiaries under a trust: express or implied § An object resting on the ground by its own
TWO LEGAL ESTATES IN LAND dies or the land is transferred
trust weight can be a fixture if its purpose is to
S.1(1) LPA 1925 § Can also be revoked by giving
enhance the realty
Restrictive covenant: promises made by one party reasonable notice
§ Freehold (estate in fee simple) – approximate to
(covenantor) in favour of the other party (covenantee) that Contractual licence D’Eyncourt – fixture If it forms part of the
outright ownership, unlimited rights of
the covenantor will not use his land in a particular way § There is consideration architectural design of the garden/house
enjoyment
§ Leasehold – right of exclusive occupation for a Estate contract: contract for the sale of land/option § If revoked, there may be damages Leigh – if annexation is only way object can
limited period of time, then reverts to freehold payable under the contract serve its function, it’s a chattel
owner Equitable easement: for an uncertain period of time § Enforceable under contract law

,
,- expressly created equitable easement – if granted for uncertain period



- if the easement fails to be created by a valid deed

, Land W2 – The Unregistered System
UNREGISTERED CONVEYANCE: THE PRE-1926 RULES
REMOVAL OF THIRD PARTY INTERESTS
Conveyance: The deed used to transfer ownership of land from § If the interest is not registrable, the pre-1926 rules apply
sellers to buyers is a conveyance § A purchaser who discovers a third-party
s.1(1) & 1(2) LPA 1925 interest before he buys the property may be
CONVEYANCING OUTLINE: § If the right is legal – binds the world able to take action to ensure that it is removed
§ If the right is equitable – it binds the world except for equity’s darling from the property before he completes the
§ There are two stages in a conveyancing transaction purchase.

Exchange: first step leads to exchange of contracts – the buyer Buyer may be able to negotiate:
EQUITY’S DARLING
obtains an equitable interest in the property; seller can still § If a lease, easement, mortgage or covenant is
make use of property until completion § Equity’s darling is the ‘bona fide purchaser of the legal estate for value without discovered, the buyer may be able to negotiate
notice’ with the person who holds the benefit of the
Completion: when the parties execute a deed to transfer legal interest and get them to release their interest.
ownership of the land Bona fide: the buyer must be acting in good faith, without fraud
Equitable interests:
§ Unregistered title - legal title is transferred upon completion Purchaser: buyer must come within definition of a purchaser – a mortgagee or § If, however, the buyer discovers an equitable
§ Registered land - the legal title passes after the interest has lessee – does not receive property by operation of law interest under an express or implied trust,
been registered at the Land Registry there is a special device that the buyer can use
Value: buyer must have bought the property for value – given consideration for the
to remove the interest from the property -
purchase of the estate
overreaching.
1. IS THE INTEREST REGISTRABLE? Legal estate: buyer must have purchased a freehold or leasehold – s.1(1) LPA 1925

§ First, check the Land Charges Act 1972 to see if the interest Without notice: the buyer must have bought the property without notice (knowing)
is registrable the equitable interest exists OVERREACHING
RIGHTS THAT ARE REGISTRABLE -
s.2(4) LCA 1972 TYPES OF NOTICE S.2 + 27 LPA / City of London Building Society v
Flegg
§ C(i) – puisne mortgages Actual Notice -
§ C(iv) – estate contract + equitable lease
§ A purchaser actually had knowledge of the interest – vague rumours don’t count To overreach a beneficial interest, the buyer
§ D(ii) – restrictive covenant
§ D(iii) – equitable easement must:
Constructive notice
§ F – s.30 FLA right to occupy matrimonial home a. Be purchasing the legal estate
§ S.199(1) LPA 1925 - Comes about when the purchaser could have got knowledge b. Pay the purchase money to all of the trustees
RIGHTS THAT ARE NOT REGISTRABLE of the interest by reasonably inspecting the property
c. The trustees must be at least two in number
§ All legal interests § Kingsnorth Finance Co v Tizard – the purchaser, or his agent, should investigate
§ Interests under trusts the seller’s title and follow up anything that appears inconsistent If overreaching occurs –
§ Pre-1926 equitable interests – restrictive covenants and § S.44(1) LPA – purchaser has the right to inspect the seller’s title deeds back to the
§ The interests of the beneficiaries cease to be
equitable easements root of title attached to the land, but attach instead to the
If the right is registered: sale proceeds in the hands of the selling
Imputed notice:
§ It is binding on the purchaser trustees
§ Purchaser is deemed to have imputed notice when his solicitor had actual or
§ Purchaser takes free of the interest
If the right is not registered: constructive notice
§ The purchaser is not bound – s.3 & 4 LCA 1972

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