Clear, precise, detailed, yet concise, Land Law summary for PDGL and SQE students. I have devoted so much time and energy to writing these notes-summaries that eventually they paid off. Not only they allowed me to pass my PDGL with a distinction, but they were key to studying for the SQE exam. My s...
TOPIC 1: INTRODUCTION TO ESTATES AND THIRD PARTY INTERESTS IN LAND
Definition of “Land” in s. 205(1)(ix) of Law of Property Act 1925: ‘land’ includes land of any tenure, and
mines and minerals, whether or not held apart from the surface, buildings or parts of buildings (whether
the division is horizontal, vertical or made in any other way) and other corporeal hereditaments; also a
manor, an advowson, and a rent and other incorporeal hereditaments, and an easement, right, privilege, or
benefit in, over, or derived from land; . . and “mines and minerals” include any strata or seam of minerals
or substances in or under any land, and powers of working and getting the same . .; and “manor” includes
a lordship, and reputed manor or lordship; and “hereditament” means any real property which on an
intestacy occurring before the commencement of this Act might have devolved upon an heir;
NB. All interests in coal now vested in Coal Authority under the Coal Industry Act 1994.
Corporeal: things that we can touch and feel with our senses.
Incorporeal: neither be handled nor felt – ie. Easement.
Hereditament: the land or right can be inherited when the original landowner dies.
Airspace: claim to airspace should be restricted to such height as is necessary for them to enjoy in an
ordinary way the land that they own and the structures that are placed upon it (Bernstein of Leigh
(Baron) v Skyviews & General Ltd).
Fixtures and chattels:
Chattel: an item of movable property (such as furniture, pictures, books, a motor car) as opposed to
land, which is immovable. If you attach a chattel to land it may cease to be a chattel and become what is
known as a fixture.
Fixture: treated as though it is part of the land to which it is attached. The general rule is that you cannot
remove a fixture.
o Two exceptions:
o Provision included in contract for sale giving right to remove fixtures;
o When the perfusion affixing the object is a tenant: tenant’s fixtures are trade, agricultural or
ornamental fixtures.
o The two-stage test to apply in order to identify a fixture are: (1) the method and degree of annexation;
(2) the object and purpose of the annexation – Berkeley v Poulett.
o First stage: attachment to soil raises presumption that it is fixture;
o Second stage: presumption can be rebutted based on object and purpose.
Held in Berkeley:
o Pictures: chattel if they had been put there to be enjoyed as pictures and no more.
o The sundial: chattel as it was detached from its pedestal years before.
o Statue: chattel, although heavy it was easy to remove and something else could have been placed
on the plinth.
o Plinth: fixture, firmly fixed to the ground and architectural importance of its siting.
D’Eyncourt v Gregory: fixtures if part of the architectural design of the property, even if objects are
freestanding and easily removable – ie. Painting in a certain location, marble vases.
Leigh v Taylor: tapestries held to be chattels as, although nailed to the wall, “the only way that they could
be properly displayed was for them to be fixed to the walls in this manner.”
Elitestone Ltd v Morris and another: The freehold owner claimed that the bungalow was a chattel and
that the tenancy consisted only of the site, so the tenants could not claim the protection of the Rent Act
1977. HL held that a house that is constructed so as to be removable, whether as a unit or in sections, may
well remain a chattel.
Botham v TSB Bank Plc:
o chattels included: carpets and curtains; light fittings; gas fires connected to the building only by a
gas pipe; white goods manufactured to standard sizes and fitted into standard sized holes;
o fitted kitchen units were fixtures.
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,The Doctrine of Tenure:
Since the Norman Conquest in 1066, all land belongs to the Crown. All persons in possession of land
were ‘tenants’.
Over time the doctrine became obsolete, but it is still technically correct to say that only the Crown owns
land whilst everyone else is a ‘tenant’ holding either immediately or mediately of the Crown. – concept of
tenure still found in the area of leases.
Estate:
An estate is a period of time. Land therefore acquires a fourth dimension, that of time.
S. 1 LPA: only two estates in land recognised by the law today:
o S. 1(1)(a) An estate in fee simple absolute in possession; = permanent ownership of the land at
the current time.
o S. 1(1)(b) A term of years absolute. = exclusive possession of the property for a fixed and
certain duration. - lease
Freehold under s. 1(1)(a):
o ‘fee’ : capable of being inherited;
o ‘Simple’: it may pass to any class of heir – capable of lasting forever.
o ‘Absolute’: estate not determinable or conditional on any event.
o ‘In possession’: entitlement to possession of the land now.
o When an owner dies with no heirs, the property reverts to the Crown.
Leasehold under s. 1(1)(b): when a fee simple owner grants another person (tenant) the right to use the
land for a fixed or determinable period of time.
o Two requirements: exclusive possession of the property for a fixed and certain duration.
o Leases can be granted for a fixed term or be periodic (monthly, annual etc.)
o S. 205(1)(xxvii): ‘term of years’ includes terms for less than a year, fraction of a year, for a year,
or from year to year.
Legal ownership and equitable ownership:
Dual ownership of same piece of land at the same time.
o Legal owner: rights recognised at common law;
o Equitable owner: rights recognised in equity.
Freehold and leasehold estates are recognised at common law = legal ownership of land.
Where there is conflict between common law and equity, equity prevails.
Third party rights and interests over land:
= interests acquired by non-owners. May be legal, equitable or statutory.
Legal interests: 5 interests capable of being legal listed in s. 1(2) LPA – 2 most important: (i) easement
where interests is equivalent to a freehold or leasehold estate; (ii) a charge by way of legal mortgage.
o S. 1(2)(a) - Easement: a right that is attached to one piece of land and imposes a corresponding
burden on another piece of land – ie, right of way, right of drainage.
Further requirement: “for an interest equivalent to” (s 1(2)(a)) either a freehold or a
leasehold interest.
o S. 1(2)(c) - Mortgage: an interest in land given as security for a loan.
Equitable interests: interests not within s. 1(2) are capable of being equitable under s. 1(3).
NB. In order to create a legal estate/interest usually must comply with formalities.
Equitable interests:
Two types: (i) beneficiaries under a trust; (ii) equitable interest in land where no trust is involved.
1. Equitable interests under trust:
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, Trustee has legal ownership (has rights at common law) and beneficiary has equitable ownership (has
rights in equity) - beneficial interest recognised by s. 1(3) of LPA.
2. Equitable interests where no trust is involved:
Restrictive covenants: promises made by one party (the ‘covenantor’) in favour of the other party (the
‘covenantee’) that the covenantor will not use their land in a particular way.
Estate contracts: contract to create or convey a legal estate in the land. The person with the benefit of the
contract (buyer) has immediate (equitable) interest in the land.
o (i) contracts for sale of land; (ii) option to purchase; (ii) equitable lease .
o Estate contracts can also arise in the following scenarios:
Failure to use a deed when expressly creating an easement. The resulting equitable
easement will be an estate contract providing it complies with s 2 LP(MP)A 1989.
Failure to use a deed when creating a lease. Equity will recognise the resulting
equitable lease as an estate contract if it complies with s 2 LP(MP)A 1989
o In such cases, the interest is rescued in accordance with the doctrine set out in the case of Walsh v
Lonsdale: ‘equity sees as done, that which ought to be done’. - ie. The lease or easement will still
be recognized in equity as an estate contract.
Statutory interests:
Section 30 Family Law Act 1996: a right of occupation as against the other spouse. This right arises
provided that:
(a) the parties are legally married (not divorced);
(b) the home is, has been or is intended to be the matrimonial home.
o Right extends to same-sex couples who registered their partnership under the Civil Partnership
Act 2004.
Licences:
A licence gives individuals permission to do something that they are not otherwise authorised to do. - The
person granting the licence is known as a ‘licensor’ and the person to whom the licence is granted as a
‘licensee’.
A licence is capable of authorising anything – ie. Right of access, temporary occupation etc.
Thomas v Sorrell: effect of a licence —> it properly passes no interests nor it transfers property, but it
only makes lawful an action which would have otherwise been unlawful.
Bare licence: granted for no consideration. – Scrutton J: ‘when you invite a person into your house to use
the staircase, you do not invite him to slide down the banisters’ (The Calgarth [1927] P 93).
Contractual licence: supported by consideration. – ie. Ticket to enter cinema and remain there while film
is being shown. Breach of this right gives rise to:
o Common law: claim in contracts;
o Equity: restrain wrongful revocation by means of an injunction.
Formalities for the creation of estates and interests:
Interests that are capable of being legal under s. 1(1) and s. 1(2) LPA require the correct formalities to be
present in order to make them legal.
Legal estate/interest —> formal requirement: deed.
o S 52 LPA 1925: all conveyances of land must be made by deed.
o S 1 LP(MP)A 1989: ‘deed’ must:
Be clear on its face that it is intended to be a deed (s. 1(1)(a) LP(MP)A)
Be validly executed by the authorised person (s. 1(2)(b)):
Signed by him and witness (s. 1(3)(a)(i)) or
Signed at his direction and 2 witnesses (s. 1(3)(a)(ii))
Be delivered as a deed (s. 1(3)(b))
o Exception: Parol Leases, s 54(2) LPA 1925: lease made orally, must:
be for less than 3yrs,
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, take effect immediately in possession and
be granted at the best market rent obtained without taking a ‘fine’ (=paying lump sum
at start in return for lower rent).
Formalities for the disposition of legal estates and interests:
Any sale or gift, or other disposal of an existing estate or interest, that is, one that has already been
created.
S 52: a deed is required to transfer a legal estate or interest.
Example: The sale of an existing legal lease. The lease was originally granted for a term of two years
(no deed needed at creation) —> deed needed at sale.
If the title is unregistered the deed transferring ownership is called a ‘conveyance’
If the title is registered the deed is called ‘a transfer’.
Formalities for the creation of equitable interests:
Equitable interest —> formal requirement: usual rule is that it needs to be in writing.
o S 53 LPA 1925: Express trusts: s. 53(1)(b) LPA 1925: in writing and signed.
o S 2 LP(MP)A 1989 - Estate contracts: (i) in writing; (ii) incorporating all terms in one document
(or in each document); (iii) signed.
S. 2(2): terms may be incorporated in one doc by reference to another doc.
o Exception: Implied trusts, s 53(2) LPA 1925:
Example: automatically comes into existence when third party makes financial
contribution to purchase of property but he is not named as legal owner.
o s 53(1)(a) LPA: The minimum formality requirement for the creation of equitable interests where
no trust is involved (other than estate contracts) is signed writing .
Ie. Equitable easement, restrictive covenants
Disposition of equitable interests:
s 53(1)(c) LPA: Any sale, gift or other disposition of an equitable interest must be in writing and
signed by the parties to the document.
—> If the formality rules are not complied with then there can be no valid interest in the land. The claimant
would have a licence only.
Conveyancing of land:
“Conveyancing”: procedure followed to transfer title to (ie ownership of) land.
Two distinct stages:
1. Exchange of contracts:
o Pre-contract stage:
Buyer investigates property fully: looking at a copy of the documentary evidence of title;
asking the seller questions about the property; searching for public local information; and
inspecting the property.
Usually the seller and purchaser sign identical but separate contracts which they
exchange. On exchange the contract becomes fully effective.
o Effect of contract:
After exchange of contracts, the seller still has the legal title to the land.
The seller may remain in the property until completion when the buyer must pay the
balance of the purchase price.
Between contract and completion, the buyer has an equitable interest in the property.
2. Completion:
o To transfer the title to a legal estate/interest in land: must execute a deed (s. 52 LPA).
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