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Summary LAND LAW Notes
LAND LAW Notes for the SQE 1 exams
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LAND LAWFixtures:
1. fixtures are included within the definition of land whereas chattels remain personal
property
2. 2-stage text to determine whether an object is a fixture or a chattel- Berklet v Poulett
1. (a) The degree of annexation and
a. how firmly affixed is the object to the land?
b. If an object cannot be removed without causing significant damage to the
land, it is likely a fixture
2. (b) the purpose of annexation.
a. Why has the object been attached to the land?
b. If the object was attached to enhance the land or create a permanent
improvement then it is a fixture
c. If the object was attached for the better enjoyment of the object then it
retains its characteristic as a chattel – TSB Bank Plc v Botham
i. Items where are ornamental are often chattels
ii. Kitchen units are fixtures
iii. Carpets and curtains are chattels as well as light fittings attached
by screws
d. D’Eyncourt v Gregory – tapestries fixed into panelled walls, pictures,
marble vases and garden ornaments held to be fixtures despite their ease of
removal as the items were part of the overall architectural design.
CONTRACTS
Estates in Land:
- Freehold
- Fee simple absolute in possession
- s1(1)(a) LPA 1925
- Lasts for an unlimited time
- Nearest title to absolute ownership
- Leasehold
- Tenant grants exclusive possession of land for a fixed period
- Term of years absolute
- Granted out of a freehold estate
- s1(1)(b) LPA 1925
- Last for a definite/certain time
Interests in Land:
- Easements
- Right to use another lands
- Profits
- Right to go on another’s land and take something which exists naturally (right
to fish)
- Rentcharge
- Right to receive a periodic payment charged on the land
, - Mortgages
- Beneficial interests behind a trust
- Restrictive Covenants
- Estate Contracts
Equitable interests in land
- S1(3)- Equitable
- Equitable rights are created by:
- Contract to create or transfer a legal estate or interest
- By trying to grant a legal estate or interest but failing to comply with the
relevant formalities
- By grant an estate or interest by a person who owns only an equitable right
- By grant of an estate or interest which can only exist in equity
- By express trust
- Trustee holds legal estate and beneficiary enjoys the benefit of the
property
- By implied trust
- Resulting or constructive trusts
- Interests equitable in nature
- A beneficial interest under a trust
- A restrictive covenant
- An estate contract
Licence
- A licence is a personal right and does not create an interest in land
- Licenses are binding only between the original parties and would not bind the
successor in title
The List- s1 LPA 1925
- s1(1)(a)- Freehold
- s1(1)(b)- Leasehold
- s1(2)- Legal Interests (Easements and Mortgages)
- s1(3)- Equitable interests (estate contracts, restrictive covenants and beneficial
interests behind a trust)
All contracts for the creation or transfer of rights in land:
s2 LP(MP)A 1989
Contract for the sale of land:
1. Must be in writing
2. Include All terms
3. and, Both Parties must sign
Contracts may be exchanged
May refer to another document
Contracts that do not have to comply with s2 LP(MP)A 1989
- Contract to grant a lease of a term not exceeding 3 years: s54(2) LPA 1925
- Auctions
, - The contract is entered into once the hammer lands down
- Creation of Resulting, Implied or Constructive trusts: s53(2) LPA 1925
Cases on s2:
- ‘Signed’ by both parties
- Firstpost Homes v Johnson- the parties reached an oral agreement for the
purchase of land. The seller wrote out a letter, dated and signed it, and
signed the plan. The buyer signed the plan and not the letter. The seller died.
The Buyer bought an application for specific performance, and stated the
letter and plan constituted as section 2 complied contract. However, the court
held, the letter was the document that s2(3) required to be signed, and the
signature of the buyer on the plan did not suffice.
- Include ‘All Terms’
- Tootal Clothing v Guinea Properties- TC were granted a lease for 25 years,
they were to carry out shop fitting out to the shop properties. On completion of
these works the landlord was to pay £30,000 to the tenant. The landlord failed
to pay the money, and claimed the contract relied on by the tenant did not
comply with s2. The court stated, the contract to do the works was a separate
agreement to the contract for the lease, which meant the contract did not
need to comply with s2 as it was a contract to do works, not for land.
- Wright v Robert Leonard Dev’ts Ltd- the court, the remedy of rectification may
be available when a term previously agreed by the parties and intended to be
in the contract is omitted, and it would be unjust not the amend the contract.
- Oun v Ahmad- rectification was rejected, as here the agreed term was
expressly excluded.
- North Eastern Properties v Coleman- a contract for the sale of 11 flats. The
sale price included a negotiated discount of 10%. But, a discount of only 8%
was on the contract and it was agree the buyer was to submit invoice was to
be made for the remaining 2%. The buyers required specific performance
from the sellers, and stated any omission to the 2% discount in the contract,
meant it to be void and unenforceable form all the terms agreed. The court of
appeal rejected this, and upheld the order for specific performance.
- Variations in contract terms, must comply with s2
- McCausland v Duncan Lawrie- they agreed completion date which fell on a
Sunday, they orally agreed completion to take place on the Friday, but this
failed to take place on the Friday. The defendant solicitor issued a notice to
complete. Whether the agreement to change the completion date to Friday
was valid and had to comply with s2 of LP(MP)A? The Court of Appeal said,
the variation in contract terms must comply with s2 of LP(MP)A.
Acquiring a Freehold:
1. Contract, that complies with s2 LP(MP)A 1989
a. Once seller and buyer enter into a s2 compliant contract, the seller retains
legal title, but now the buyer has equitable interest (Estate Contract)
b. Legal title passes in stage 2
2. Deed
3. Registration of Title
, Remedies:
- Buyer has a proprietary right, which is enforceable in rem
- Damages for breach of contract as of right
- Equitable Remedies
- Specific performance
- This will force the other party to perform the contract
- Coatworth v Johnson- the remedy for specific performance was not
available as the party trying to enforce it were themselves in breach –
must come to equity with clean hands.
- Injunction
- This will stop the seller from selling the house to another party
Acquiring a Leasehold:
1. Contract, that complies with s2 LP(MP)A 1989
a. Once this stage is done, the buyer has estate contract with is an equitable
interest in land
b. Estate contracts are proprietary rights.
2. Deed
a. Exception if the lease is for 3 years or less
3. Registration of Title
a. If lease is for more than 7 years
Estate Contracts: Equitable interest:
- Types:
- Contract to grant a lease
- Walsh v Lonsdale
- Parties made a valid contract and the tenant had taken
possession. Parties omitted to execute a deed to create a legal
lease. The court recognised an equitable lease based on the
existence of the Contract and availability of specific
performance.
- Contract to sell freehold land
- Option to purchase
- Exclusive right to buy a piece of land in a period
- Right of pre-emption
- Right of first refusal
- Improperly created/ failed legal estates and interests
- Equitable easements
- Equitable mortgages
- Equitable leases
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