SQE Spec Key points
Nature of Land: distinction
between real Real property = immovable. Land itself and any third-party rights in the land.
property and Personal property = anything which is not the 'real' property (so anything that could be
personal moved)
property - Plants, trees and flowers that are attached to land and form part of it
- Animals if found dead on the land
- Any water which passes over or flows through the land will not form part of it.
May have fishing rights but cannot extract great volumes of it without prior
permission.
Chattel/fixture test
- Degree of annexation (if detaching the object from the land would mean
destroying or causing significant damage fixture. If simply resting on the land
by its own weight chattel)
- Purpose of annexation – considers why the item has been placed on the land. If
intention that it will be a permanent addition = fixture. If annexed merely for
convenience/creating a temporary improvement = chattel.
Legal and equitable estates in land
- Legal ownership – formal and paper ownership. They can sell/transfer the land.
- Equitable ownership (beneficial rights)
Rights
- Legal estate – mortgage, easement, right of entry
- Can only take effect in equity – restrictive covenant, interest in a trust of land, estate
contract
- Proprietary right – use/possession of the right can be recovered, burden the land –
can bind future owners
how to acquire One individual purchasing land from another or inheritance under a Will, a transfer from
and transfer parents to their children.
legal and
equitable Acquiring or transferring must always be created a deed
estates - clear on the face it is intended to be a deed
- validly executed as a deed by the parties that are subject to it
+ legal - legal estate: deed must also be registered with HM Land Reg
formalities
required to
The transfer of the unregistered freehold has been effected by deed so the legal title
create and
transfer passes to the client on completion, who then has two months to register the land for the
interests and first time.
estates in land
Before the transfer you might want to enter into a land contract
A land contract must comply with LP(MP)A 1989, s 2
- It must be in writing, contain all the agreed terms and be signed by both parties.
- The document is a valid contract as it complies with all these requirements.
Incorporation of all the agreed terms can be by reference, which is common practice,
and has occurred here.
- This contract for lease grants the tenant an equitable interest in the land called an
'estate contract'.
- There is no valid deed as the document has not been intended as a 'deed' or
delivered.
- Further, the parties are trying to enter into an contract, rather than the actual
transfer of the land.
, Equitable estate: estate contract
- An estate contract over registered land should be protected by a notice in the
charges register of the burdened land (LRA 2002, s 32) otherwise it will not bind a
purchaser for value.
how to acquire
and dispose of Legal interests in land
legal and - easements
equitable - legal mortgages
interests in - rent charge
land - rights of entry
Creation and disposal of legal interests – deed + registration
Equitable interests in land
- Restrictive covenants
- Beneficial interests under a trust (constructive trusts, resulting trusts, proprietary
estoppel). Basic principle: claim by someone who believes they have a beneficial
interest in the property and they wish to try to override the legal ownership
Constructive trust: where one party (not a legal owner) contributes
substantially to repayment of mortgage or pays some substantial
improvements to the property (better action than prop estoppel)
Resulting trust: where one party contributed to the purchase price but is not a
legal owner
Prop estoppel: prevents one party going back on a promise or from taking
advantage of another's misbelief about their own legal rights in a piece of land
- Estate contracts: it will arise after exchange of contracts in conveyancing
different ways Freehold = Fee simple absolute in possession, from this we can grant:
in which land - We can have a life estate where someone has life interest in the land. Life tenant
can be held = right of one or more persons to use and occupy the property for their life. In
reversion (property for life of A, then to children) or in remainder (estate owner
grants life interest to 3rd party)
- Determinable fee simple – reverts back after an unpredictable event (death is
predictable). Conditional fee simple – needs a condition throughout ownership
- Lease
Leasehold
Title to Land: how to protect 3rd party interests = estate contracts, freehold restrictive covenants, equitable leases,
3rd party equitable easements and profits (created post-2003), equitable mortgages, home rights,
(registered interests trusts of land
land)
By registration
Failure to complete reg process = purchaser will acquire an equitable interest in the land
only
estates that
can be LRA 2002 include different categorisations of rights that can affect land:
substantively - substantively registrable estates = a piece of land will have a unique title number
registered upon first registration
- registrable dispositions = dealings with the land which will not be legally binding
unless they are registered against the title of the property
- other 3rd party interests capable of protection on the register (e.g. right of way,
covenants)
- unregistered interests which override the registered estate (do not appear on the
title, e.g. when a 3rd party contributed to the purchase price) will be binding
whether they are registered or not
Nature of Land: distinction
between real Real property = immovable. Land itself and any third-party rights in the land.
property and Personal property = anything which is not the 'real' property (so anything that could be
personal moved)
property - Plants, trees and flowers that are attached to land and form part of it
- Animals if found dead on the land
- Any water which passes over or flows through the land will not form part of it.
May have fishing rights but cannot extract great volumes of it without prior
permission.
Chattel/fixture test
- Degree of annexation (if detaching the object from the land would mean
destroying or causing significant damage fixture. If simply resting on the land
by its own weight chattel)
- Purpose of annexation – considers why the item has been placed on the land. If
intention that it will be a permanent addition = fixture. If annexed merely for
convenience/creating a temporary improvement = chattel.
Legal and equitable estates in land
- Legal ownership – formal and paper ownership. They can sell/transfer the land.
- Equitable ownership (beneficial rights)
Rights
- Legal estate – mortgage, easement, right of entry
- Can only take effect in equity – restrictive covenant, interest in a trust of land, estate
contract
- Proprietary right – use/possession of the right can be recovered, burden the land –
can bind future owners
how to acquire One individual purchasing land from another or inheritance under a Will, a transfer from
and transfer parents to their children.
legal and
equitable Acquiring or transferring must always be created a deed
estates - clear on the face it is intended to be a deed
- validly executed as a deed by the parties that are subject to it
+ legal - legal estate: deed must also be registered with HM Land Reg
formalities
required to
The transfer of the unregistered freehold has been effected by deed so the legal title
create and
transfer passes to the client on completion, who then has two months to register the land for the
interests and first time.
estates in land
Before the transfer you might want to enter into a land contract
A land contract must comply with LP(MP)A 1989, s 2
- It must be in writing, contain all the agreed terms and be signed by both parties.
- The document is a valid contract as it complies with all these requirements.
Incorporation of all the agreed terms can be by reference, which is common practice,
and has occurred here.
- This contract for lease grants the tenant an equitable interest in the land called an
'estate contract'.
- There is no valid deed as the document has not been intended as a 'deed' or
delivered.
- Further, the parties are trying to enter into an contract, rather than the actual
transfer of the land.
, Equitable estate: estate contract
- An estate contract over registered land should be protected by a notice in the
charges register of the burdened land (LRA 2002, s 32) otherwise it will not bind a
purchaser for value.
how to acquire
and dispose of Legal interests in land
legal and - easements
equitable - legal mortgages
interests in - rent charge
land - rights of entry
Creation and disposal of legal interests – deed + registration
Equitable interests in land
- Restrictive covenants
- Beneficial interests under a trust (constructive trusts, resulting trusts, proprietary
estoppel). Basic principle: claim by someone who believes they have a beneficial
interest in the property and they wish to try to override the legal ownership
Constructive trust: where one party (not a legal owner) contributes
substantially to repayment of mortgage or pays some substantial
improvements to the property (better action than prop estoppel)
Resulting trust: where one party contributed to the purchase price but is not a
legal owner
Prop estoppel: prevents one party going back on a promise or from taking
advantage of another's misbelief about their own legal rights in a piece of land
- Estate contracts: it will arise after exchange of contracts in conveyancing
different ways Freehold = Fee simple absolute in possession, from this we can grant:
in which land - We can have a life estate where someone has life interest in the land. Life tenant
can be held = right of one or more persons to use and occupy the property for their life. In
reversion (property for life of A, then to children) or in remainder (estate owner
grants life interest to 3rd party)
- Determinable fee simple – reverts back after an unpredictable event (death is
predictable). Conditional fee simple – needs a condition throughout ownership
- Lease
Leasehold
Title to Land: how to protect 3rd party interests = estate contracts, freehold restrictive covenants, equitable leases,
3rd party equitable easements and profits (created post-2003), equitable mortgages, home rights,
(registered interests trusts of land
land)
By registration
Failure to complete reg process = purchaser will acquire an equitable interest in the land
only
estates that
can be LRA 2002 include different categorisations of rights that can affect land:
substantively - substantively registrable estates = a piece of land will have a unique title number
registered upon first registration
- registrable dispositions = dealings with the land which will not be legally binding
unless they are registered against the title of the property
- other 3rd party interests capable of protection on the register (e.g. right of way,
covenants)
- unregistered interests which override the registered estate (do not appear on the
title, e.g. when a 3rd party contributed to the purchase price) will be binding
whether they are registered or not
