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Summary Land Law

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Summary of 71 pages for the course Land Law at University of Law (London)

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  • May 21, 2015
  • 71
  • 2014/2015
  • Summary
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UNIT 1.1: INTRODUCTION TO ESTATES AND THIRD PARTY INTERESTS IN LAND

2. FIXTURES AND CHATTELS

A fixture is treated as though it is part of any land which is attached. It has ceased to be a
chattel. The parties’ legal advisors will seek to avoid any difficulties by ensuring that the
contract for sale makes it clear which items are included in the sale and which are not. If these
items are not included in the contract, then the following tests come into play:

2.1 The two tests to identify a fixture

1. The method and degree of annexation

There must be some degree of physical annexation of land. The legal maxim is that whatever is
attached to the soil becomes a part of it. If the object has been attached in such a way that it
cannot be removed without causing serious damage to the realty, it is difficult to allege that this
is still a chattel.

2. The object and purpose of the annexation

This looks at the reason for annexing the chattel. Applying this test, it is possible to argue that
an object resting upon the ground under its own weight is a fixture if the purpose of placing it
there was to enhance the realty.

NB. There are two exceptions to the rule that you cannot remove a fixture:

1. The person selling the land may include a provision in the contract that gives him
the right to remove fixtures.
2. If the person who has affixed the objects is a tenant, he has the right to remove a
fixture.


3. CONCEPTS OF OWNERSHIP

3.1 The Doctrine of Tenure

The doctrine of tenure concerns the way in which is held, from whom and on what terms.
Although much of this doctrine is historic, it is still to be found in the area of leases. The tenant
pays money - a rent - to a landlord, for the right to occupy. Leases developed at a later date,
although borrowed from tenure.

3.2 The Concept of the Estate

, A person does not own land but owns a period of time. Because an estate is a period of time, it
is capable of division. Therefore the owner of an estate can create from it a lesser estate, or
shorter period of time, and confer this upon others.

Whilst you own an estate of land, you have the right to occupy and enjoy that land, or to receive
any rents or profits accrued from that land.

There are only two estates in land which are recognised by the law:

1. Section 1(1)(a) Law of Property Act 1925 an estate in fee simple absolute in
possession (the freehold estate): A person owning a fee simple is free to do with it
whatever he wants. He can sell it or give it away, and it may be inherited, ie. it is forever.
2. Section 1(1)(b) Law of Property Act 1925 a term of years absolute (the leasehold
estate): It is inferior to the freehold estate because it is of limited duration.

To earn an income from land, a fee simple owner can grant a tenant the right to use the land for
a fixed and determinable amount of time. The leasehold estate owner must have exclusive
possession of the property for a fixed and certain duration. The lease must be ‘for a term
certain’. Section 205(1)(xxvii) defines the expression as a ‘term of years as including amounts
of time of less than a year.

3.3 Relationship Between Common Law and Equity

Both freehold and leasehold estates exist at common law. They therefore equate to legal
ownership of land. However, where there is a conflict between legal and equitable rules, the
equitable rules prevail.

3.3.1 Equity and the concept of the trust

If a person is entrusted with land in the faith that they will pass it to someone else when the
owner comes of age, then they are the legal owner (trustee, recognised by the common law)
and the other is the equitable owner (beneficiary, recognised by equity).

If the buyer pays the purchase money to a minimum of two trustees and obtains their receipt,
then the buyer will take the property free from any equitable interests that arise from under a
trust. The equitable interests are transferred to the proceeds of the sale, this is called
‘overreaching’.


4. THIRD PARTY RIGHTS AND INTERESTS OVER LAND

These are interests which are acquired by non-owners. They could be legal, equitable, or arise
under a statute.

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