TWO types of right in land:
1. Proprietary Rights 2. Personal Rights
Enforced by an action in rem = use or Can ONLY be enforced by a personal
possession of the land can be recovered. action for damages.
Capable of being enforced against a third party Only bind original parties to the right, there
can bind a FUTURE owner. can be NO recourse against a third party.
To be a proprietary right: 1) on the fixed list + 2) complies w/ substantiative requirements +
3) complies w/ the formalities 4) did it need to be registered in order to be enforceable?
Key principle: Land should NOT be unnecessarily burdened fixed list:
FIXED list of proprietary rights (not definitive):
• The freehold estate
• The leasehold estate
• An easement
• A mortgage
• A restrictive covenant
• An estate contract
• A beneficial interest in a trust of land
Determining the status of a right in land:
Fixed list: is it on the list of recognised proprietary rights in land?
Nature of a right: does it satisfy any substantive characteristics for
the particular proprietary right?
Creation of a right: Has it been created/acquired in accordance with
the formalities for the particular right (if any)?
Protection of a right: if a right is proprietary, you then need to ask if it is
enforceable against a third party (ie a new owner of the burdened land.)
,Proprietary right: an estate = a right to possess and use the land (freehold or leasehold)
Freehold estate Leasehold estate
fee simple absolute in possession ‘Terms of years absolute’
Equivalent to absolute ownership of land Aka a lease. You are a tenant if you own
LPA 1925, s 1(1)(a)) one of these estate (N.B. you own a
A piece of land will only be subject to one of lesser estate)
these estate Lasts for a certain duration
Lasts indefinitely = only extinguished if LPA 1925, s 1(1)(b)
landowner dies without next of kin + without Granted out of a freehold estate. Can
a will land regarded as bona vacantia & have more than one leasehold for a piece
estate reverts to the Crown (v. rare) of land= subleases
Physical possession not necessary
N.B. A commonhold = a TYPE of freehold (Commonhold and Leasehold Reform Act 2002)
® Freehold owner = a company called a commonhold association
® Owner of each flat is a member of the association
® Alternative to a LONG lease (declining asset) but commonholds not popular.
Hierarchy of rights: Crown Freehold estate Leasehold estate
*Freehold reversion: the residue of the estate AFTER the granting of a lease.
- When lease ends: right to physical possession automatically reverts to the landlord
*Leasehold reversion: the residue when the grantor HOLDS a leasehold estate.
Interest in Land
Interest in land = right to use/enjoyment of the land (‘incumbrances on an estate’)
CAN adversely affect the value & saleability of land fixed list under LPA 1925, s1(2):
Legal interests (LPA 1925, s 1(2)): Equitable interests (LPA 1925, s 1(3)):
- Mortgages - Freehold covenants
- Easements granted for a forever or - Estate contracts
certain term - Interests in a trust of land
- Rights of entry - Easements granted for an uncertain term
Key point 1. Remedies DIFFER
® Legal interest has a WIDE range of remedies w/ damages = an automatic right
® Equitable interest is NOT entitled to damages as of right – court has discretion!
Key point 2. Enforcement of the interest against third parties DIFFERS
Land Transfer
Conveyancing: legal process of transferring title to freehold/leasehold estate.
Transfer can be achieved by 1) sale 2) will 3) gift and 4) operation of the law (bankruptcy)
Can still walk Pre-exchange
away without Point at which parties become
incurring legal Exchange of Contracts contractually committed to deal
liability Voluntary
Contract must comply w/ LP(MP)A
1989, s 2 (in writing, all express terms
+ signed by both parties) Unregistered land: legal title
passes
When buyer PAYS Completion of the Deed
the purchase money Required by LPA 1925, s 52 Valid execution = seller +
collects keys Deed must comply w/ LP(MP)A signs w/ witness attesting
1989, s 1 (clearly intended to be
a deed + validly executed +
Unregistered land: 1st delivered Registered land:
registration must occur legal title passes
within 2 months or legal title Registration once transfer is
reverts back to seller Registered land: LRA 2002, s 27(2) registered
(1)(a)
Unregistered land: LRA 2002 ss
4&6)
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