Land Law Revision Guide PDF

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Summary

Land Law Revision Guide1. Concept of Property2. Doctrine of Tenure and Estates3. Unregistered Land4. Registered Land5. Transfer of Titles6. Adverse Possession7. Equitable Ownership of Land8. Co-ownership9. Leases10. Easements11. Freehold Covenants12. Mortgages13. 3rd Party InterestsConcept of Proper...

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Land Law Revision Guide 1.

Concept of Property

2.

Doctrine of Tenure and Estates

3.

Unregistered Land

4.

Registered Land

5.

Transfer of Titles

6.

Adverse Possession

7.

Equitable Ownership of Land

8.

Co-ownership

9.

Leases

10.

Easements

11.

Freehold Covenants

12.

Mortgages

13.

3rd Party Interests

Concept of Property

A Right in Rem = Property and Enforceable against the property A Right in Personam = Personal rights and Enforceable against the person Personal Property = choses in possessions (tangible products likes cars and clothes), choses in action (intangible rights, other than those relating to land, so patents, copyrights, debts etc..) and chattel real (leases which are estates in land) Rights of ownership Legal – Common Law right to recover and keep property Equitable – Property obligations imposed on legal owner in favour of equitable owner e.g. informally created interests of trust Two systems of Land Transfer Registered Land – Title registered at land registry – statutory system LRA 2002 – all titles will eventually be registered Unregistered Land – Ownership recorded on title deeds – Common law and equity apply subject to statutory amendments – LPA 1925 and LCA 1972 The Meaning of Land Corporeal Hereditaments Found in S.205(1)(ix) LPA 1925 Fixtures or Fittings? – Fixtures is part of the land s.62. Fitting is a chattel Holland v Hodgson – Method or Degree of Annexation + Purpose of Annexation – Factory looms intended to form part of the land - Judge Blackburn Buckland v Butterfield (1820) – Conservatory attached to house by 8 cantilevers formed part of land. Berkley v Poulett (1976) – statute made of marble and weighing nearly half a ton was not regarded as part of the land, because it was not fixed down in any way. Thus anything annexed to the land is land Leigh v Taylor [1902] – Tapestry tacked to strips of wood, attached to the walls, did not form part of the land – degree of annexation merely that which was necessary Things not attached to land may be considered part of it, for legal purposes D’Eyncourt v Gregory (1866) – stone statutes, seats and garden vases held to be part of land – formed integral part of architectural design. Elitstone v Morris [1997] – Chalet bungalow on top of blocks, but not attached to them, blocks attached to land, needed to prove it was land to get rent protection, bungalow was land despite degree of annexation, stressed the importance of ‘intention’ How Far Up and Down Bocardo SA v Star Energy UK Onshore Ltd (2010) – Licence to search for and get petroleum – predecessors drilled diagonally into substrata below land owned by Bocardo (2,900 feet) and did not interfere with enjoyment. Liable for trespass.

Section 76(1) Civil Aviation Act 1972 – No action in trespass or nuisance by reason only of the flight of an aircraft over any property at height above the ground which is reasonable

Bernstein v Skyviews and General Ltd [1978] – Claim by landowner for trespass in respect of flights over his house for aerial photography rejected. Court held that landowner only owns airspace necessary for reasonable enjoyment of the land

Estates and Interests in Land All Land is owned by the crown – most anyone can have is an estate in land = rights which a person has to control and use the land. An estate owner = owner of the land. Two types of estate capable of being legal – S1 LPA 1925 Freehold Estate (Fee Simple) – Legal estate in land which last for an unlimited time and in practice is perpetual Leasehold (Term of Years Absolute) – Legal estate which lasts for a definite time – must give exclusive possession – must have a definite end and beginning (Lace v Chantler 1944) – May be fixed term or periodic – May be assigned or sub-let. Interests in Land – A right which a person has over another’s land These are all proprietary rights and not personal rights – Capable of binding 3rd parties There are five interests capable of being legal listed in S1(2) LPA 1925 Easements or Profits á prendre – Gives the right to use land of another in some way, or prevent it from being used for certain purposes. Profit gives the right to take something from someone’s land. Rentcharges – Gives owner the right to periodical sum of money secured on land independently of any lease or mortgage. No new rentcharges can be created after 22nd July 1977 and most be will extinguished by 22 July 2037 or 60 years from date of creation Charge by way of legal mortgage – Charge on land to secure a debt Statutory charge – Land tax, tith rentcharge, and any other similar charge on land which is not created by an instrument Rights of re-entry – exercisable over or in respect of a legal term of years absolute, or annexed, for any purpose, to a legal rentcharge. S.52(1) LPA 1925 Requires the use of a deed to create or convey a legal estate or interest in land. A deed is document which, if made before 31st July 1990, had to be sealed, but no longer necessary Section 1(2) and (3) Law of Property (Miscellaneous Provisions) Act 1989 An instrument shall not be a deed unless: It makes clear that it is intended to be a deed; It is signed by person executing it and by a witness present at same time who also signs it It is delivered by the person executing it or by someone on his behalf Equitable Interests – All other interests in land are equitable – s.1(3) LPA 1925

Interests Under a Trust

Restrictive Covenants Interests under contracts to create legal estates or interests Interests which are not created formally – S52 and S1 LP(MP)A 1989 – Separate point: If a contract has been made to create an interest in land then equity may, at its discretion, enforce it by a decree of specific performance or restrain its breach by an injunction. -

The word ‘grants’ usually indicates a deeed

Legal and Equitable rights and enforcements against 3rd parties In Unregistered Land: Legal rights bind the world – Registration of MOST equitable interests as land charges (LCA 1972) – Certain equitable rights still binding subject to the doctrine of notice – Overreaching (s.2 LPA 1925) In Registered Land: Title to the land is registered and deeds are no longer necessary (LRA 2002) – Legal and Equitable interests entered on the land register against the title – Overriding interests – Overreaching Why is distinction important? They have a different effect on the purchaser of the land Overreaching – The process by which equitable rights that exists under a trust of land are removed from the land and transferred to the money that has been paid to purchase the land. The effect is to give the purchaser automatic priority over equitable interest under a trust. *Can only take place if the transaction is made by at least two trustees or a trust corporation.

Unregistered Land

Land the title to which has not yet been registered at the Land Registry Conveyance of Unregistered Land 1. Transferor to produce title deeds 2. Transferor must show a “good root of title” (at least 15 years) 3. Conveyance by deed (s52(1) LPA 1925) 4.Application to Land Registry for the first registration as proprietor of a registered title Interests binding on a purchaser – legal interest before 1925 – Legal interest in unregistered land required no protection against 3rd parties – Rights in Rem (So enforceable against property) – They are enforceable against everyone Interests binding on a purchaser – equitable interests before 1925 The Doctrine of Notice

A bona fide purchaser for value without notice, of a legal estate (not equitable estate or interest), without the notice of the equitable rights. Actual = Purchaser knows Constructive = Purchaser bound by any matters which would be revealed on examination of the deeds. AND purchaser is bound by all matters which would be revealed by an inspection of the land. Rule in Hunt v Luck (1901) – Purchaser held to have notice of all the rights of a tenant who was in occupation of land, but not rights of the landlord from whom tenant derived his title As a result, purchaser risks having CONSTRUCTIVE NOTICE of any rights belonging to anyone in occupation, and should ensure they make enquiries. Imputed = Purchaser has notice of any matter which his agent has notice of. Kingsnorth Finance Co. Ltd v Tizzard [1986] – Mr T was sole registered proprietor in matrimonial home, wife had beneficial interest, marriage broke down, but Mrs T looked after kids and stayed some night. Mr T mortgaged the property, stating that he was single. Inspector saw otherwise. Finance took property subject to wife’s interest. Lenders were on notice after the lie. Lender failed to take steps to avoid constructive notice. Inspection inadequtate due to pre-arranged time.

Interests binding on a purchaser – legal interests – they require no protection against 3rd parties as they’re enforceable against everyone

Interest binding on a purchaser – equitable interests 1. Interests which must be registered on the Land Charges Register 2. Interests which are still subject to the doctrine of notice 3. Interests which are subject to overreaching 1. Land Charges Only interests which are included on Act’s list are Land Charges. Interests which appear should be protected by registration on the Land Charges Register -

Classes A and B; derive from statute

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Class C(i): Puisne Mortgage – a second or subsequent mortgage. Legal mortgages not protected by title deeds to the property as the first mortgage will have these. Only legal interests registerable as land charges Class C(iv): An estate contract: These include contracts to buy the fee simple and also contracts for a lease, contracts to grant options, a right of pre-emption (s2(4)(iv) LCA 1972)

*Midlands Bank Trust Co Ltd v Green [1981] – Father granted option to purchase farm to son. Option was not registered as land charge. Father was mad and sold it to his wife to defeat his son’s option. Wife put it in her will. Son wanted to enforce option. No enforcement. No requirement of good faith for a purchaser. Money or Money’s worth excluded marriage consideration. -

Class D (ii): a restrictive covenant entered into on or after 1 st January 1926 Class D (iii): an equitable easement or profit created or arising on or after 1 st January 1926 Class F: Matrimonial Home right under Family Law Act 1996.

Effect and process of registration of land charges Registration is against the name of the estate owner (s.3(1) LCA 1972) Diligent Finance v Alleyne [1972] - Mr Alleyne held the legal title of a house. The name on the conveyance was Erskine Owen Alleyne. His wife registered a class F land charge against the name of Erskine Alleyne (omitting his middle name). Mr Alleyne later mortgaged the property to Diligent Finance who conducted an official search in the correct name Held: Diligent Finance took priority over the wife's interest. Oak Co-operative BS v Blackburn [1968] - Francis David Blackburn was the legal owner of a house which was conveyed in that name. He was, however generally known and did business in the name of Frank rather than Francis. He agreed to sell the house to the appellant.. The appellant registered the estate contract as a land charge in the name of Frank David Blackburn. Frank subsequently mortgaged the house to the building society who undertook an official search in the register against the name of Francis Davis Blackburn; making a mistake with regards to the middle name. Held: The Land charge was protected despite being registered in the wrong name. - A Land Charge search certificate is conclusive (s10(4) LCA 1972) - Compensation in certain cases for losses due to undisclosed land charges (s25(1) LPA 1969) - Constitutes actual notice to the purchaser of the legal estate (s 198(1) LPA 1925 - The equitable interest is binding on a subsequent owner of the land Effect of non-registration of land charges A,B,C (i),ii, iii and F -

Void against a purchaser for valuable consideration of an estate or interest in the land S4(5) LCA 1972

C(iv) and D (i), (ii) and (iii) -

Void against the purchaser of the legal estate for money or money’s worth S4(6) LCA 1972

2. Equitable Interests still subject to the doctrine of notice

- bona fide purchaser of the legal estate for value without notice 3. Interests which are subject to overreaching - Beneficial interests in land under a trust or strict settlement may be overreached - Purchase money must be paid to at least two trustees - Overreaching is a method of selling land free from ‘family’ (non-commercial) interests - The trustees can pass to the purchaser an estate free from encumbrances - The rights of the beneficiaries are transferred to the purchase price City of London Building v Flegg [1988] Mr and Mrs MB registered proprietors of Bleak House, but over half of purchase price had been raised by Mr and Mrs F, the parents of Mrs MB, who were also to live at the house. House held on trust for all four of them. Mr and Mrs MB then, without knowledge of Mrs MB’s parents, raised two further charges over the property then defaulted on the repayments. Lender sought possession and it was held that the interests of parents had been overreached by the charges and that rights only now existed in proceeds of sale. The interests of beneficiaries in a trust of land are overreached if the transaction is, in this case, entered by two or more trustees -

Purchaser not to be concerned with the trusts of the proceeds of sale.

Registered Land Three principles underlying the system of registered land: 1. Mirror Principle – register reflects totality of rights affecting the title 2. Curtain Principle – certain types of interest should not inconvenience the purchaser 3. Insurance Principle – compensation payable for loss suffered by reason of guarantee of title First Registration Registration may be voluntary or compulsory Triggers for compulsory registration 1. Transfer of Qualifying Estate 2. Grant out a qualifying estate of a leasehold estate of more than years 3.Creation of a protected first legal mortgage of a qualifying estate Qualifying Estate – Unregistered Legal estate which is freehold estate, or leasehold estate which at time of transfer/grant/creation has more than 7 years to run Duty to Apply and the Effect of Failure -

The period for registration is two months after transfer/grant/creation (s6(4) Failure to register means that the transfer/grant/creation of legal estate becomes void (s7) Effective in equity only Any costs incurred to be borne by the transferee or grantee

*On first registration – estate subject to interests – subject of an entry on the register, overriding interests, interest acquired under limitation act 1980 of which the proprietor has notice (s11(4) LRA 2002) * Subsequent Dealings with a registered estate Future dealings must be completed by registration (s27(1) The transfer operates only in equity until application is made for registration Protecting Rights over Registered land Registerable estates and interests – Registerable charges – Registerable charges – Registerable incumbrances (Burdens on the register) – Overriding interests Burdens on the register -

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Interests which are not registerable with their own title and are not interests which override must be protected by an entry on register by a: NOTICE (S32) or RESTRICTION (prevents invalid dispositions, secures overreaching, protects interests) (S40) An unprotected interest is void as against a purchaser/transferee/grantee for valuable consideration (S29 LRA 2002)

Interests which override – These do not have to be registered but bind a purchaser Alterations to the register – Correction of Errors in the register (Sch 4 LRA 2002. May need correction for different reasons 1. Correcting a mistake 2. Bringing register up to date 3. Giving effect to any estate right or interest excepted from the effect of registration

Registered Land - Interests Which Override -

Rights which are not discoverable by searching the register but remain binding on a purchaser S 70 LPA 1925 The number of overriding interests reduced by the LRA 2002

LRA 2002 distinguishes between -

Interests which override on first registration of land – Sch 1 Interests which override on subsequent registration of land – Sch 3

There is a duty to close known unregistered interests which could override (s71(a) LRA 2002

Interests which override 1. Legal Leases - Legal leases granted for a term of not more than 7 years will override: a) First Reg b) Registered Dispositions - Exceptions include leases which takes effect in possession after the end of a period of three months beginning with the date of the grant (in s4(1)(d) 2. Rights of a person in actual occupation - The interests of a persons who are in actual occupation will override registration – S70(1)(g) LRA 1925

- Exceptions under LRA 2002; a) Must be a proprietary right along with actual occupation b) First Registration c) Registered Dispositions Examples of rights capable of overriding: -

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Rights of Beneficiary under a trust – Williams & Glyn’s Bank v Boland [1981] – Mr Boland sole registered proprietor – Mrs Boland contributed to purchase price and mortgage (Beneficial Interest) – Mr B defaulted on mortgage payments – Bank sought possession – Mrs B claimed Overriding Interest – Held; Overriding interest and Bank Unsuccessful Rights of Pre-emption (s115) Proprietary Estoppel and Mere Equities

Rights not capable of overriding

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Right of occupation in matrimonial home – National Provincial Bank v Ainsworth [1965] – Mr Ainsworth was sole registered proprietor of matrimonial home – Left and lived with mum – they got separated – wife lived in home rent free – he transferred house to his company to secure company debts – defaulted on payyments – Mrs Ainsworth did not have a proprietary interest in the land capable of being an OI – right to remain was a personal one.

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Future Leases Interest under a settlement under the settled land Act 1925

When is there actual occupation?

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William’s and Glyn’s Bank – the land was the wife’s home Hodgson and Marks – vendor and occupier in occupation at the same time

Mrs Hodgson transferred her house to her lodger on basis she remained beneficial owner – Both lived in house with regard to rent and payment of bills – He was bare trustee for her – He then sold house to Mr and Mrs Marks – They saw her and assumed just his wife – Mrs Hodgson in actual occupation and irrelevant that they thought wife – no requirement that occupation need be apparent

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Chokar v Chohkar & Parmer – temporary absence of wife in occupation Abbey National BS v Cann [1991] – moving furniture in before completion

Son took out mortgage to buy house for mother – Defaulted and bank sought possession – Mrs Cann sought actual possession – On move in date, she was in Netherlands but husband started moving into property – Relevant time for determining occupation was date of completion of transaction rather than the date of registration. Moving in is not sufficient to constitute actual occupation

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Link Lending Ltd v Bustard [2010] – intention to return? Malory Enterprises v Cheshire Homes (UK) Ltd [2002] – some degree of permanence with and continuity – Land in question was awaiting development by Malory Enterprises -Company had maintained fences around the land and taken other physical measures to exclude trespassers, and had stored goods on the property – Actual occupation

Actual Occupation under LRA 2002

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No overriding intere...