Land Law PDF

🏝️ Land Law Land Ownership: Estates in Land 1. Crown Ownership In countries like the UK, the Crown (the government) is considered the ultimate owner of all land. Individuals cannot own land completely but can hold...

🏝️ Land Law Land Ownership: Estates in Land 1. Crown Ownership In countries like the UK, the Crown (the government) is considered the ultimate owner of all land. Individuals cannot own land completely but can hold rights or interests in the land Land Definition Section 205(1)(ix) LPA 1925 Law of Property Act 1925, section 205(1)(ix). It includes not only the surface of the land but also things like mines, minerals, buildings, and other physical objects (called corporeal hereditaments). It also covers certain rights over the land (incorporeal hereditaments) such as rents or easements. (so land is not just actual surface but land below and air space above) Bernstein of Leigh (Baron) v Skyviews & General Ltd. (from ulaw notes) Basic Distinction in Land Law 1. Corporeal Hereditaments Physical aspects of land and what is permanently attached to it (e.g., buildings, trees). 2. Incorporeal Hereditaments (Rights over land). Includes easements + profits Examples include: Easements: Rights for one landowner to use another's land (e.g., a right of way). Land Law 1  Profits: Rights to take something from another's land (e.g., fishing or mining rights). (btw) Easements and rents are legally considered "land.” 2. Estates in Land This refers to the types of rights people can have over land. The two main types are: A. Freehold (Fee Simple) The most complete ownership someone can have. (nearest to absolute ownership recognised by English Law) You own the land indefinitely but must still follow laws and pay taxes. ‘Fee simple absolute in possession’ Fee: This means the property can be inherited. The owner has the right to pass it on to heirs after their death. Simple: There are no restrictions on who can inherit the property. It can go to anyone the owner chooses, not just specific individuals. Absolute: The ownership is not limited by any conditions. For example, if the property is given to someone "until they marry," it wouldn't count as "absolute" because it would end when that event happens. Fee simple absolute means the ownership lasts forever without any special conditions or events that can terminate it. In Possession: This means the owner has the right to use the property immediately. It's not something that will only be theirs in the future, like property given to someone once they turn 21. B. Leasehold You own the land for a set period of time (like renting). When that time is up, ownership reverts to the original owner. Law of Property Act 1925: Section 1(1) This law outlines the two legal types of land ownership: Land Law 2  1. Fee Simple Absolute in Possession (Freehold) You own the land forever and can live on it, sell it, or pass it on when you die. 2. Term of Years Absolute (Leasehold) You have the right to use the land for a specific period (e.g., 10 or 50 years), similar to renting, but it eventually goes back to the owner. Commonhold (Commonhold and Leasehold Reform Act 2002) Definition: A new form of property ownership allowing individuals to own units (like flats) in buildings with shared areas (e.g., lifts, stairways). Current Use: Very few commonhold properties exist in England and Wales (less than 50). Key Features Individuals own their unit (e.g., their flat). Common parts (like stairways) are owned and managed by a commonhold association made up of the unit owners. Unlike leasehold, there is no landlord; owners manage everything together. Law Commission Report (2021) Suggested making it easier for leaseholders to switch to commonhold. Recommended using commonhold for larger, mixed-use developments that include homes, shops, and restaurants. Fixtures and Fittings The Basic Rule "Land" legally includes not only the earth but also anything fixed to it, such as buildings and plants. Surprisingly, anything attached to a building, such as a conservatory, also becomes part of the land. For example, in Land Law 3  Buckland v Butterfield (1820), a conservatory attached by small brackets was considered part of the land. If someone wants to sell land but keep certain items (like rose bushes), they need to specify this in the contract. In contrast, items merely resting on the land, like a heavy statue in Berkley v Poulett (1976), are not considered part of the land unless fixed to it. Courts also recognize that things fixed only for display purposes, such as a tapestry, do not become part of the land, as in Leigh v Taylor (1902). The purpose of attaching something helps determine whether it is part of the land. For instance, in Marlborough Knightsbridge Management Ltd v Fivaz (2021), doors on a flat were considered part of the land because they were essential for privacy and security, not just because of how they were attached. 1. Fixtures (part of land) Objects attached to the land in such a way that they become part of it. Typically sold with the land. 2. Fittings (Chattels) (not considered part of the land) Items not considered part of the land. Do not automatically transfer with the sale of the land unless specified. Key Cases 1. Botham v TSB Bank plc (1996) Provides guidance on the distinction between fixtures and fittings. 2. Royal Parks Ltd. v Bluebird Boats Ltd. (2021) A boathouse on the Serpentine Lake in London was considered a fixture. Decision Factors: Annexation: How permanently the boathouse was attached to the land. Land Law 4  Intention: It was meant to be a permanent improvement to the land. Result: The boathouse belonged to the Crown, not Bluebird Boats, because it was part of the land. Berkley v Poulett (1976). Leigh v Taylor. Hulme v Brigham. (these 3 from ulaw notes) Treasure Act 1996 Abolished the old concept of "treasure trove" and now provides that any articles defined as treasure vest in the Crown. Interests in Land Definition An interest in land is a right one person has over another's land. (Note: An estate in land refers to a right one has over their own land). Types of Interests in Land Legal Interests (These are formal rights recognized by law. They are listed in a specific legal document (the Law of Property Act 1925). Equitable Interests (These are rights that are not formalized in the same way as legal interests. They arise from fairness and justice, rather than strict legal rules.) All interests not categorised as legal must be equitable. It's important to first understand legal interests before moving to equitable interests. Key Distinction Proprietary Rights (e.g if you have a legal interest in a piece of land, that right can be enforced against anyone who buys that land in the future.): Rights that can bind third parties (e.g., legal estates, legal interests, equitable interests in land). Land Law 5  Personal Rights (only apply to you): Rights that do not bind third parties (e.g., licenses). Legal Interests in Land (Section 1(2) LPA 1925) Legal interests are defined under Section 1(2) of the Law of Property Act (LPA) 1925. Any interest not on this list is considered equitable. Legal interests bind anyone who buys the land, subject to land registration rules. List of Legal Interests: (a) Easements, Rights, or Privileges over Land: Must be for an interest equivalent to an estate in fee simple (i.e., indefinitely) or for a definite term (e.g., a term of years). Easements: Rights to use another's land (e.g., rights of way, water, or light). Profits à Prendre: Rights to take something from another's land (e.g., wood, fish, or grazing rights). (b) Rentcharge in Possession A rentcharge gives the owner the right to a periodic sum of money, secured on land, without a lease or mortgage. Commonly found in Manchester and Bristol. No new rentcharges can be created after 22 July 1977 (with some exceptions). Most rentcharges will be extinguished on 22 July 2037 or 60 years from their creation, whichever is later. (c) Charge by Way of Legal Mortgage A mortgage is a charge on land to secure a debt. This is one of the methods for creating a legal mortgage. (d) Land Tax, Tithe Rentcharge, and Similar Charges: Charges that burden the land with periodical payments. Most charges in this category have now been abolished. Land Law 6  (e) Rights of Entry Exercisable in respect of a legal term of years absolute or attached to a legal rentcharge. Example: A right of re-entry in a lease if the tenant fails to pay rent. Final Notes Legal interests are binding on all future owners of the land (subject to land registration rules). Equitable interests apply when the interest doesn't fall under the legal category and typically require more complex rules for enforcement Legal and Equitable Interests in Land Section 52(1), Law of Property Act 1925 Requires a deed to create or convey a legal estate or interest in land. Deed Requirements: Before 31 July 1990: A deed had to be sealed. After 31 July 1990: Sealing is no longer necessary. Section 1(2) and (3), Law of Property (Miscellaneous Provisions) Act 1989 An instrument shall not be a deed unless: 1. It clearly states it is intended to be a deed. 2. It is signed by the person executing it, and witnessed by a present individual who also signs it. 3. It is delivered by the person executing it or someone on their behalf. Examples of Easements: Example 1.2(a): X agrees with Y by deed that Y can have a right of way across X's land for the rest of Y's life. Step 1: Identify the right — an easement. Land Law 7  Step 2: Is it legal or equitable? It's equitable, despite being created by deed, because it's limited to Y's lifetime. Example 1.2(b): X agrees with Y by deed that Y can have a right of way across X's land. Step 1: Identify the right — an easement. Step 2: Is it legal or equitable? It's a legal easement because it's not limited to Y's lifetime, so we assume it's permanent. Step 3: Is it created by deed? Yes, confirming it's legal. Note: Interests may sometimes be implied or presumed, rather than explicitly granted by deed. Equitable Interests in Land The Court of Chancery originally recognized equitable interests, as opposed to Common Law Courts. Interests that don't meet the criteria for legal interests are equitable. Chapter 2 explains A right can become equitable rather than legal if not registered as required by the LRA 2002. Key Characteristic of Equity: Equity intervenes when common law's strict rules would lead to injustice. It typically doesn't insist on formalities like deeds. Key Points: Legal ownership and benefit are split. Common law initially didn't recognize trusts, allowing trustees to disregard beneficiaries' rights. Equity enforces trusts as a matter of conscience, acknowledging that trustees shouldn't have full control. A trustee can also be a beneficiary if intended. Originally, common law didn’t recognize trusts, allowing trustees to ignore beneficiaries' rights. Equity emerged to ensure trustees act Land Law 8  in beneficiaries' best interests, enforcing fairness. Sometimes, a trustee can also be a beneficiary if intended by the trust. Determining if an Interest is Legal or Equitable Interests Under Trusts: A trust occurs when (one person) a trustee holds property for (another person) a beneficiary. Example: X (Trustee) → holds property → Y (Beneficiary) X is the legal owner, but Y has the equitable interest. Land Law 9  Common Trust Example: X contributes to a land purchase, but legal title is in Y's name. Y holds the land on trust for X, unless there's a contrary intention. This scenario frequently arises in land law. Interests Not Created Formally: If a contract creates an interest in land, equity may enforce it through specific performance or prevent its breach with an injunction. Specific Performance: A court order requiring someone to fulfill their part of the contract. Injunction: A court order preventing someone from doing something that would violate the rights of another. (lawful act to be done or restrains an unlawful act) Equitable Maxim: "Equity looks on that as done which ought to be done." This means equity may treat an interest as an equitable interest in land, even when a deed is required but absent. Legal and Equitable Interests in Land Example 1.3: Grant of a Right of Way Land Law 10  X agrees to grant Y a right of way over his land. Not in a deed, so it cannot be a legal easement. Equity may enforce it as an equitable easement. For example, an agreement for a lease may also be equitable (see Walsh v Lonsdale in Chapter 6). Key Distinction: Deed vs. Agreement Deed: The term "grants" usually indicates a deed, where X grants the right to Y. Agreement: "Agrees to grant" suggests a future interest and points to an equitable right. Deeds: To create a valid deed, a document must make it clear on its face that it is intended to be a deed and must be signed, witnessed and delivered. (ulaw notes) Section 2, Law of Property (Miscellaneous Provisions) Act 1989 states the formalities required for a valid contract for the sale of land, not a deed. (ulaw notes) Section 2, Law of Property (Miscellaneous Provisions) Act 1989 Section 2(1): Contracts for the sale or disposition of land (after 27 September 1989) must: 1. Be in writing, 2. Contain all terms agreed upon by the parties, 3. Be signed by all parties (including email signatures per Neocleous v Rees (2019)). Section 2(5): Excludes the creation of resulting, implied, or constructive trusts, which remain unaffected by the writing requirement. Pre-1989 contracts: Do not require writing. Equitable easements: Enforceable if the agreement meets the Section 2 requirements. Land Law 11  Example: Keay v Morris Homes (2012): Any agreement to vary a contract must also satisfy Section 2. Electronic Conveyancing Section 91, Land Registration Act 2002: Electronic documents can meet the formalities for deeds and contracts. Full e-conveyancing (from offer to registration) is proposed but not yet in place. Current system continues alongside it (Law Commission Report, 2018). Restrictive Covenants Definition: Covenants (in a deed) where one party agrees not to use land in a specific way, e.g., maintaining fences or prohibiting building. Enforced only in equity. Legal vs. Equitable Interests Importance: Legal and equitable interests affect a purchaser differently. Inheritance: If a person inherits land, they take it with all equitable rights (i.e., not a purchaser). Exam Tip: Check if the person inherited the land; if so, they are not a purchaser and will inherit any equitable rights. Overreaching (Section 2(1), Law of Property Act 1925) Definition: The process by which equitable rights under a trust are transferred to the sale money (capital money), giving the purchaser priority. Section 2(1): A conveyance of a legal estate to a purchaser overreaches equitable interests if: Capital money is paid to at least two trustees or a trust corporation. Restriction: Overreaching only occurs if the sale is made by two trustees or a trust corporation. Land Law 12  Example 1.4: Overreaching in Practice 1. Scenario 1: X sells legal estate to Y. Z is a beneficiary under a trust. Y may be bound by Z’s interest. 2. Scenario 2: X and W (as trustees) sell to Y. Z (beneficiary) – Y's interest is protected, and Z’s equitable interest is overreached (transferred to the sale money). Overreaching and Beneficiaries’ Rights in Land Scenario: Y will not be bound by Z's interest because the transaction was made by two trustees (X and W). Z's interest is overreached and transferred to the sale proceeds. Y is unaffected by Z’s interest, but Z can claim her share of the sale proceeds from X and W. Exam Tip: Overreaching in Trusts of Land Single Trustee: Overreaching cannot occur if only one trustee transfers the legal estate. Two Trustees: Overreaching will take place when two or more trustees are involved (see Shami v Shami). City of London Building Society v Flegg Facts: Mr. and Mrs. MB (house owners) held the property on trust for themselves and Mrs. MB’s parents (Mr. and Mrs. F). Land Law 13  MBs, without informing the parents, raised charges over the property and defaulted on repayments. The lender sought possession, and the court held that Mr. and Mrs. F’s interests were overreached by the charges. Legal Principle: Beneficiaries' interests are overreached when the transaction is entered into by two or more trustees. Analysis: This fits the 1925 legislation policy, which keeps trust interests "behind the curtain" and limits investigation to the legal title. The practical outcome (i.e., losing the ability to stay in the home) depends on whether one or two trustees conveyed the land. Key Points: Section 205(1)(xi), LPA 1925: A purchaser includes a lender under a mortgage. Uncertainty: Overreaching might still occur even if trustees breach the trust (N3 Living v Burgess, 2020). Recent Developments in Overreaching 1. State Bank of India v Sood (1997): Overreaching can apply even if no capital money changes hands during the transaction (e.g., when the mortgage is for future liabilities). 2. Shami v Shami (2012) (Obiter): Overreaching might still happen with only one trustee, even if no capital money arises from the sale. 3. Mortgage Express v Lambert (2016): Overreaching applies to mere equities (e.g., the right to set aside a sale due to an unconscionable bargain), not just beneficial interests under a trust. Land Law 14  4. Baker v Craggs (2016): The Court of Appeal held that easements do not trigger overreaching, which only applies to the conveyance of a legal estate. Impress Your Examiner: The Flegg situation may become more common as homeownership costs rise. Owen (2015) suggests limiting overreaching to cases where the beneficial interest was not registered in the land registry. Overreaching and the Human Rights Act (HRA) 1998 Article 8 ECHR (respect for family and private life) can be invoked by tenants in possession cases, requiring courts to consider the proportionality of eviction. Key Case: Manchester City Council v Pinnock UKSC 6 Facts: The council sought to evict Pinnock due to anti-social behavior by his family members. Legal Principle: A person facing eviction by a public authority can challenge the proportionality of this under Article 8 ECHR. Analysis: Pinnock applies only to public sector tenants; the Supreme Court left open the question of whether Article 8 has horizontal effect between private landlords and tenants. McDonald v McDonald (2016): Art. 8 does not apply between private landlords and tenants, as contractual rights are regulated by statutory law. Ownership, Possession, and Occupation Common Law emphasizes possession over ownership in land law. Land Law 15  Exclusive possession grants a leasehold estate (see Chapter 6). Distinguish between: Possession (legal right to the land) Occupation (physical presence, with or without possession) Overriding Interests: Occupiers with a proprietary interest may have rights that bind future landowners (see Chapter 2). Introduction to Land Registration Land registration is a crucial aspect of land law, impacting various legal topics: Adverse Possession Leases Licences and Estoppel Easements and Profits Freehold Covenants Mortgages It can be a key topic in both essay and problem questions. We will explore the differences between registered and unregistered titles. Assessment Advice Essay Questions: Land Registration Act 2002 (LRA 2002): Examine its impact on registered land and its effectiveness. Overriding Interests: Discuss their necessity and relevance. Comparison: Contrast the systems of registered and unregistered land. Problem Questions: Often connect with other areas, such as trusts of the home (see Chapter 4). Land Law 16  Determine if an equitable interest is overriding based on the specifics of registration. Principles of Land Registration Key Principles of LRA 2002: 1. Mirror Principle: All relevant title facts are on the register. 2. Curtain Principle: Purchasers need only refer to the register, not to underlying trusts. 3. Insurance Principle: Compensation is provided for register errors. Current Status: Nearly 90% of titles are registered. Full registration is the goal, with future provisions for electronic dispositions (see Chapter 1). Scheme of the LRA 2002 Categories: 1. Registrable Dispositions: Must be completed by registration (e.g., transfers, leases over 7 years, legal easements). 2. Unregistered Dispositions: Override registered dispositions (old category of overriding interests). 3. Protected Interests: Require an entry against the title (formerly minor interests). Exam Tip: Understand the three classifications under LRA 2002 to handle problem questions effectively. Registrable Dispositions Section 27(1) LRA 2002: Dispositions must be registered to operate legally. Land Law 17  Dispositions Requiring Registration: Transfer of registered freehold estate (including gifts, court orders, death). Legal leases over seven years or certain short leases. Grants of legal easements, profits, rentcharges. First legal mortgages. Beware: Sections 28 and 29 LRA 2002: Prioritize interests based on their registration status. Example 2.1: John sells to Mary: If John dies and Anne inherits, Mary’s contract binds Anne (Section 28). John sells to Anne: If Anne buys for valuable consideration, Mary’s unregistered interest may not bind Anne (Section 29). Note: A registrable disposition takes effect only upon registration. Overriding Interests Definition: Unregistered interests that override registered dispositions. Types: 1. Interests Overriding on First Registration: Affect land when first registered. 2. Interests Overriding on Subsequent Registration: Affect land when it is re- registered. Example 2.2(a): John sells unregistered land to Mary: Christopher’s unregistered interest may not be an overriding interest until Mary’s title is registered. Exam Tip: Land Law 18  Overriding interests are common in both essay and problem questions. Understanding these principles and categories will help you address various aspects of land law related to registered and unregistered land effectively. When selling land with unregistered title, a seller must prove title beginning with a root of title at least 15 years old.- by virtue s 44 LPA 1925 as amended. (ulaw) Research Law Trove Westlaw Lexis+UK Elite Blackboard Outlook Land Law 19