LAND LAW - Legal AND Equitable Interests, Estates, AND Rights - Unregistered LAND. PDF

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LAND LAW NOTES – LEGAL AND EQUITABLE INTERESTS, ESTATES, AND RIGHTS - UNREGISTERED LAND. Tenure - The terms on which land is granted Estates - Duration for which land is granted Freehold estate before 1925, 3 types: 1) Fee simple 2) Fee tail (to original grantee and lineal descendants) 3) Life estate Freehold Estates after 1925, 1 type: 1) Fee simple - defined in Walsingham 1573 Freehold = Estate in fee simple absolute in possession. Largest estate in land. Fee = Means grant or inheritance. Simple = Means inheritable by general heirs. Possession has 2 meanings: - 1) immediate right to occupation and physical possession - 2) receipt of rents and profits from the land Not in possession if it is in remainder or reversion. Remainder = Means a present right to future enjoyment. Reversion = Rights retained by the grantor who fails to exhaust the entire interest in the land. Absolute = Not conditional and not determinable. Conditional = a gift of an absolute interest which is cut down by the application of a condition. Eg: words such as on the condition that, but if, if, provided that. Can confer a legal estate because of section 7.1 lpa. Determinable is not a gift of an absolute interest and lasts only until the determining event occurs. Eg. Until, so long as, whilst. Only can be an equitable estate. Words such as until, so long as, whilst, during. Reform of land law – no current plans to modernise by abolishing remnants of feudalism. Leasehold = Term of years absolute. Term = Means for a fixed period and not indefinite. Of years = Can be less than a year so periodic tenancy. Eg 3 months. Absolute = No special meaning, still absolute if determinable or conditional. Types of leases: Fixed term. Periodic tenancy. Tenancy at will. Tenancy at sufferance. Assured tenancy and assured shorthold tenancy.

Common hold and leasehold reform act 2002. Common Hold = Block of flats or units on industrial estate (common parts). Compromises of fee simple ownership of each flat, not leasehold. Registered as a freehold estate in common hold land. Reasons for introducing common hold: - Leases are wasting assets. L.L may try to forfeit lease for minor breach of covenant Advantages of common hold: - Common hold association. Common hold community statement. Right to manage. Disadvantages of common hold: - Cannot create a lease for more than 7 years. No forfeiture for breach of obligations. No special tribunal to deal with dispute (only ADR or court) 5 legal interests in land: 1) s.1.2.a – Easement, right or privilege: Easement is a right over someone else’s land. - Must be an estate in fee simple absolute in possession, a term of years absolute. Equivalent to freehold or leasehold. 2) s.1.2.b – Rent charge: Third party interest where land is charged with a payment of a sum which may be paid annually or periodically. - Must be perpetual (forever) or term of years absolute Rent Charges Act 1977 = No new rent charges can be created after 21st august 1977 and those from before will be extinguished 60 years from the act (2037). Exceptions which can create a rent charge: a) Family charges, land voluntarily or in consideration of marriage or by way of family arrangement with sum. b) Estate rent charge, money obligation with positive covenant eg: carry out repairs. DON’T NEED TO REVISE RENT CHARGES JUST KNOW GENERALLY. 3) s.1.2.c – Charge by way of legal mortgage. (IMPORTANT). 4) s.1.2.d – Miscellaneous charges. 5) s.1.2.e – Right of entry, (different from easement) if tenant is breaching covenants the L.L has the right to bring the lease to an end aka forfeiture and take the land back. Must be for legal term of years absolute or annexed to a legal rent charge.

Equitable estate and interests: All other interests and estates which do not fall within s1.1. and section 1.2. LPA 1925 are equitable under s.1.3. LPA 1925. If legal interest not satisfied, then it will be an equitable interest if meeting the formalities. Restrictive Covenant – Restricts how land is used. Equitable interest. Law commission has suggested that restrictive covenants should be a legal interest in land. Can be created in a deed but still equitable. Unregistered land Before 1925: 1) Legal estates and interests bound the world without being registered. 2) Equitable interests bound everyone except a bona fide purchaser of the legal estate for value without notice (Equity’s darling). Bona fide = Good faith. Purchaser = Buyer, lessee, mortgagee. For value = Consideration does not have to be adequate. Money, money’s worth and marriage. Purchaser must be without notice: a) Actual notice. b) Constructive notice = A notice a purchaser would have had if he had made proper inquiries. Inspects the land or inspects the vendors title documents, s.199.1 LPA 1925. Hunt v Luck. c) Imputed notice = Notice that an agent employed by the purchaser has or should have. Includes the agents actual or constructive notice. How to prove title in unregistered land: -

Production of title deeds. Good root of title going back at least 15 years. S.23 LPA 1969, first document of title older than 15 years.

Registration of Land Charges under Land Charges Act 1972: (ONLY FOR UNREGISTERED LAND) Class c(i) – Puisne mortgage, legal charge or mortgage not protected by deposit of title deeds. If a later mortgage was needed it would be registered under this charge to protect the mortgage. If it was a first legal mortgage the lender would be given a title deed. Class c(iii) – General equitable charge (any equitable charge not protected by deposit of documents) Not important. Class c(iv) – Estate contract (contract to convey or create a legal estate). Includes option to purchase. Class d(ii) – Restrictive covenant, entered after 1st January 1926. Does not include covenant between landlord and tenant. Only applied to freehold.

Class d(iii) – Equitable easements, entered into after 1 st of January 1926. Does not include right of re-entry under a lease: Shiloh Spinners v Harding. -

Estoppel based easements may not be registered as land charges, Er Ives Investment LTD v High but may still be binding. Doctrine of mutual benefit and burden. Equity arising out of acquiescence.

Class f – matrimonial home rights under family law act 1996. Where one spouse or civil partner has legal or and beneficial interest and other does not the non-owner spouse has rights in the property: - Right to not be evicted or excluded - Right to occupy Option to purchase: Right granted to someone to buy the land within a certain time. Right of pre-emption/right of first refusal if owner decides to sell the land. Pritchard v Briggs = right of pre-emption is not an interest in land until vendor decides to sell (unregistered land only), Bircham & co v Worrell Holdings. Registered land, is binding as soon as right is given. Binds registered land charges act under s 1.9.8. if not registered then may not be binding. Effect of registration: -

s.198(1) LPA – Registration is deemed to constitute actual notice to all persons and for all purposes. s.199(i) LPA – Actual knowledge irrelevant if void due to nonregistration. 1.s.4.6. LCA 1972 – class c(iv) and D void against a purchaser for money or money’s worth of the legal estate. Money’s worth = Midland Bank Trust Co LTD v Green, valuable consideration even if property was sold for silly money. All other classes are void against purchaser of land.

Mode of registration: Against name of estate owner. Problem of registration hidden behind good root of title. Partial solutions = statutory compensation: s.25 LPA 1969 provides compensation to purchaser for loss through undiscovered land charges where there is no reason why they should have been discovered. For unregistered land. 1925 was significant as it led to the following acts LPA 1925, SLA, LCA 1972, LRA 2002, AEA. The aims of the legislation were to: 1. Free alienability. 2. Fragmentation of benefit, family interests, commercial interests. 3. Balance protection of purchaser of legal title with protection of owners of fragments of benefit. Rationalisation of legal estates and interests: 1. Reduction of legal estates and interests 2. Restriction on number of legal owners of legal estates, max num 4.

Legal co-ownership = joint tenancy. Equitable co-ownership = joint tenancy or tenancy in common. Formalities 1. Legal estate or interest = Need a deed s.52 lpa 2. Equitable interest = must be in writing, signed by creator s.53 covers equitable charges, restrictive covenants etc. 3. Contract = s2 LPA miscellaneous provisions, Rabiu v Marlbray LTD, must be complied with as well as for equitable leases, mortgages, and easements. 4. Oral = it is not legal or equitable a) takes effect as an interest at will only b) exception for oral leases for not more than 3 years, take effect in possession at the best rent which be reasonably obtained without taking a fine. No formalities required for proprietary estoppel, resulting trusts constructive trusts, and implied trusts, Davies v Davies. E-conveyancing will change the requirement for formalities. Not yet introduced in the intended format.

Conveyancing 1. Steps before contract is concluded 2. Exchanged of contracts 3. Further investigation of title 4. Completion 5. Registration 6. Electronic conveyancing Land defined as – corporeal hereditaments, the land and what is attatched to the land eg: buildings, fixtures mines and minerals and incorporeal hereditaments are rights over land eg: easements or restrictive covenants. LPA 1925. Botham v TSB Bank PLC. Maxims include – an owner of land owns everything from the depths of the earth up to the heavens. This has been criticised as a ‘colourful phrase’ = Bernstiein v Skyviews LTD. Fixtures – are connected to the land and pass on sale unless contrary to the agreement, s 62 lpa. Chattels – also known as fittings, moveable possessions and do not pass on sale unless express agreement to the contrary. Tests to determine if fixture or chattel: 1- Degree of annexation. 2- Purpose of annexation = Holland v Hodgson. Tenants have the right to remove certain ‘tenant fixtures: - Trade fixtures - Plant and equipment

- Ornamental and domestic fixtures - Agricultural fixtures Minerals, plants, trees, animals, fish, belong to the land owner. Question of ownership when they die, Nicholls v Ely Beet Sugar Factory. Owner does not have ownership of water that flows through his land. Fracking – Infrastructure Act 2015 Airspace – a) Lower stratum - Immediately above the owner’s property aprox 200m above roof level. Bernstein v Skyviews LTD = Rights are up to height necessary for ordinary use and enjoyment of land. b) Higher stratum – Latin maxim of owning everything to the heavens has no application = Bernstien v Skyviews LTD. Objects buried in ground belong to landowner = Elwes v Briggs Gas Company. Objects on the ground a) Invitees – Entitled to keep in absence of the true owner. Landowner can manifest intention to claim title eg: by notice, Parker v Ba. Intention can be implied in cases of private property, Parker v Ba. b) Trespassers have weak rights. Bocardo SA v Star Energy UK Onshore LTD – rights should only extend to 1000 feet below. Treasure Act 1996 = Any object at least 300 years old, not a coin, but has at least 10% weigh of a precious metal....