Land Workshop Notes for MCT:
W1: Nature of Land
Land/real property- study the rights that exist over land.
Key legislation
- Law of Property Act 1925- foundation of modern land law
- Land Registration Act 2002- governs system of land registration, a national record of
land ownership in England and Wales, managed by HM Land Registry gov
department
Distinction between proprietary right and personal rights= remedy available to someone
deprived of right, and enforceability of the right against third parties.
- Third party= a new owner of the land burdened by the right, in the context of land
law
- Proprietary right= in land, can be enforced by an action in rem, meaning that use of
possession of the land can be recovered. The holder of the right does NOT have to
settle for damages if they are deprived of their right. It is also capable of being
enforce against a third party.
o Rights which have proprietary statuts: freehold estate, leasehold estate,
easement e.g. can be right of way, mortgage, restrictive covenant, estate
contract, beneficial interest in a trust of land.
Just because its in the fixed list, doesn’t mean has proprietary status-
need to look at the nature, creation, and protection of rights in land
to determine if they are proprietary or personal.
- Personal rights= in land can only be enforced by personal action for damages if the
right is breached. Use (or occupation) of the right cannot be recovered. They will only
bind the original parties to the right, there can be no recourse against a third party
(e.g. licence)
Proprietary right = can recover possession or use of the right (remedy differ to personal
right) and is capable of binding third parties (not just the original grantor of the right_- can
bind a new owner of the burdened land.
- Piece of land can be subject to a hierarchy of different, and sometimes competing
proprietary rights. Proprietary rights are therefore a BURDEN on a piece of land,
affecting the use and value of it.
- Because of their power, subject to strict requirements / formalities for their
creation / acquisition. Must comply with formalities (rules / procedure that must be
observed in order to validly create or transfer a proprietary right)
- Proprietary rights in land must be made apparent by registration to bind purchaser
of subsequence rights in same land (general rule)
,Land law should not be unnecessarily burdened.
Estates in Land: proprietary right to POSSESS the land = estates / all can be described as
owners
- Freehold estate: a proprietary right to possess the land INDEFINITELY. ‘fee simple
absolute in possession’ s.1(1)(a) LPA 1925
o Fee- can be inhereited, simple- by heir, absolute- not liable to end
prematurely, in possession- current right to use and enjoy property
- Leasehold estate: proprietary right of possess the land FOR A DURATION OF THE
LEASE, may be over the whole, or just part of the land. Certain duration. ‘terms of
years absolute’. S.1(1)(b) LPA 1925
o Leaseholder (i.e. tenant) may grant a lease of a lesser duration out of their
own leasehold, while retaining the original lease- now subject to the sub-
lease
o Process may continue with shorter and shorter periods of possession being
granted by the successive sub-lessees
o The residue of the estate after the granting of a lease = freehold reversion
If the grantor holds a leasehold estate, the residue is known as = leasehold
reversion
Means that when lease ends, the right to physical possession of the
land automatically reverts to the landlord.
Interests in land = proprietary rights, right to use or enjoy the land in some way . Most
important ones on fixed list in s.1 LPA 1925: mortgage, easement, right of entry, restrictive
covenant, interest in a trust of land, estate contract.
Interest = proprietary right of limited use, right to do smth / restrict what can be done on
land. AKA- Incumbrances on an estate
- Some interests can be legal in nature (mortgage, easement, and right of entry), other
interests can only take effect in equity.
o Land can therefore be subject to a number of different competing proprietary
rights.
Legal Interests Equitable Interests
- Mortgages - Freehold covenants
- Easements (certain term or forever) - Estate contracts
- Rights of entry - Interests in a trust of land
- Easements granted for an uncertain
term
, - Mortgage: bundle of rights granted over property in exchange for a loan of money.
Rights include the right to possess and sell the land in the event of default in the
mortgage repayments. The borrower grants the mortgage, not the lender.
- Easement: proprietary right to use land which belongs to somebody else,
- Right of entry: is a legal interest in land, for a landlord to re-enter premises and end
leasehold estate in event of default or breach (‘forfeiture clause’- right of entry in a
lease), a rentcharge owner’s right to hold the land if money owed is not paid)
- Restrictive covenant: promise relating to the land
o Usually arises when one sells part of land and wishes to ensure buyer doesn’t
do anything that will affect amenity + value of retained land.
o Restrictive covenants negative in nature, prevent landlowner from doing
something on their land. Equitable interest.
Distinction between legal and equitable interests:
- Remedies:
o Legal interest wide range remedies, damages automatic remedy, no discretion
to take into account the merits of the case, equitable remedies may be
available subject to equitable principles
o Equitable interest infringed, not entitled to damages automatically, remedies
granted are entirely at the discretion of the court.
- Enforcement (topics 5 + 6)
Land Transfer: (Conveyancing- the legal process of transferring title to a freehold or
leasehold estate / AKA sale or purchase of a house or flat) transfer freehold estate /
Conveyancing
1. Exchange of contracts (voluntary)-: the point at which the parties become
contractually committed to the sale / deal. Once the contracts have been exchanged,
neither party can walk away without incurring liability.
a. To be valid land contract must be: LP(MP)A 1989 s.2
i. Contract must be In writing
ii. Contain all the (expressly) agreed terms
iii. Be signed by both parties
, b. For a variation of a land contract to be valid, it must also comply with these
requirements (McCausland v Duncan Lawrie)
i. ‘incorporation of all the terms’- common practice
ii. Also common practice for both parties to sign identical copies of the
same document, which are then physically exchanged
c. A valid land contract gives the buyer and equitable interest in the land: Estate
Contract (gives a proprietary right, so if seller tries to back out of deal, seller
doesn’t have to settle for damages and can ask the court to enforce the
contract, forcing the seller to acc sell the land by order of Specific
Performance
2. Completion of the deed: compulsory
a. Deed must be used to transfer the land- this is a document that is:
i. Intended as a deed
ii. Validly executed by the seller
iii. Delivered, which done by dating the document
b. An individual executes a deed by signing it in the presence of a witness who
must also attest their signature
3. Registration
a. Unregistered land: requirement for compulsory first registration, transfer of
land = triggering event
b. Registered land: the transfer must be registered to ensure registered title kept
up to date.
i. Registered title may miss certain rights like overriding interests that
may be binding but not on the document.
Registered Land: legal title passes once the transfer is Registered (Stage 3).
Unregistered Land: legal title passes on Completion of the Deed (Stage 2). The unregistered
land must be registered (compulsory first registration) within 2 months of completion, or the
legal title will revert back to the seller.
Transfer of a freehold estate can be achieved by: sale, will, gift, operation of law.
Land Contracts- s.2 LP(MP)A
- Must be inwriting
- Must contain all expressly agreed terms
- Must be signed by both parties
Any variations to contract must comply with above.
Effect of a binding land contract= pass an equitable interest in the land to the buyer, called
an ESTATE CONTRACT
Land contract vs estate contract:
W1: Nature of Land
Land/real property- study the rights that exist over land.
Key legislation
- Law of Property Act 1925- foundation of modern land law
- Land Registration Act 2002- governs system of land registration, a national record of
land ownership in England and Wales, managed by HM Land Registry gov
department
Distinction between proprietary right and personal rights= remedy available to someone
deprived of right, and enforceability of the right against third parties.
- Third party= a new owner of the land burdened by the right, in the context of land
law
- Proprietary right= in land, can be enforced by an action in rem, meaning that use of
possession of the land can be recovered. The holder of the right does NOT have to
settle for damages if they are deprived of their right. It is also capable of being
enforce against a third party.
o Rights which have proprietary statuts: freehold estate, leasehold estate,
easement e.g. can be right of way, mortgage, restrictive covenant, estate
contract, beneficial interest in a trust of land.
Just because its in the fixed list, doesn’t mean has proprietary status-
need to look at the nature, creation, and protection of rights in land
to determine if they are proprietary or personal.
- Personal rights= in land can only be enforced by personal action for damages if the
right is breached. Use (or occupation) of the right cannot be recovered. They will only
bind the original parties to the right, there can be no recourse against a third party
(e.g. licence)
Proprietary right = can recover possession or use of the right (remedy differ to personal
right) and is capable of binding third parties (not just the original grantor of the right_- can
bind a new owner of the burdened land.
- Piece of land can be subject to a hierarchy of different, and sometimes competing
proprietary rights. Proprietary rights are therefore a BURDEN on a piece of land,
affecting the use and value of it.
- Because of their power, subject to strict requirements / formalities for their
creation / acquisition. Must comply with formalities (rules / procedure that must be
observed in order to validly create or transfer a proprietary right)
- Proprietary rights in land must be made apparent by registration to bind purchaser
of subsequence rights in same land (general rule)
,Land law should not be unnecessarily burdened.
Estates in Land: proprietary right to POSSESS the land = estates / all can be described as
owners
- Freehold estate: a proprietary right to possess the land INDEFINITELY. ‘fee simple
absolute in possession’ s.1(1)(a) LPA 1925
o Fee- can be inhereited, simple- by heir, absolute- not liable to end
prematurely, in possession- current right to use and enjoy property
- Leasehold estate: proprietary right of possess the land FOR A DURATION OF THE
LEASE, may be over the whole, or just part of the land. Certain duration. ‘terms of
years absolute’. S.1(1)(b) LPA 1925
o Leaseholder (i.e. tenant) may grant a lease of a lesser duration out of their
own leasehold, while retaining the original lease- now subject to the sub-
lease
o Process may continue with shorter and shorter periods of possession being
granted by the successive sub-lessees
o The residue of the estate after the granting of a lease = freehold reversion
If the grantor holds a leasehold estate, the residue is known as = leasehold
reversion
Means that when lease ends, the right to physical possession of the
land automatically reverts to the landlord.
Interests in land = proprietary rights, right to use or enjoy the land in some way . Most
important ones on fixed list in s.1 LPA 1925: mortgage, easement, right of entry, restrictive
covenant, interest in a trust of land, estate contract.
Interest = proprietary right of limited use, right to do smth / restrict what can be done on
land. AKA- Incumbrances on an estate
- Some interests can be legal in nature (mortgage, easement, and right of entry), other
interests can only take effect in equity.
o Land can therefore be subject to a number of different competing proprietary
rights.
Legal Interests Equitable Interests
- Mortgages - Freehold covenants
- Easements (certain term or forever) - Estate contracts
- Rights of entry - Interests in a trust of land
- Easements granted for an uncertain
term
, - Mortgage: bundle of rights granted over property in exchange for a loan of money.
Rights include the right to possess and sell the land in the event of default in the
mortgage repayments. The borrower grants the mortgage, not the lender.
- Easement: proprietary right to use land which belongs to somebody else,
- Right of entry: is a legal interest in land, for a landlord to re-enter premises and end
leasehold estate in event of default or breach (‘forfeiture clause’- right of entry in a
lease), a rentcharge owner’s right to hold the land if money owed is not paid)
- Restrictive covenant: promise relating to the land
o Usually arises when one sells part of land and wishes to ensure buyer doesn’t
do anything that will affect amenity + value of retained land.
o Restrictive covenants negative in nature, prevent landlowner from doing
something on their land. Equitable interest.
Distinction between legal and equitable interests:
- Remedies:
o Legal interest wide range remedies, damages automatic remedy, no discretion
to take into account the merits of the case, equitable remedies may be
available subject to equitable principles
o Equitable interest infringed, not entitled to damages automatically, remedies
granted are entirely at the discretion of the court.
- Enforcement (topics 5 + 6)
Land Transfer: (Conveyancing- the legal process of transferring title to a freehold or
leasehold estate / AKA sale or purchase of a house or flat) transfer freehold estate /
Conveyancing
1. Exchange of contracts (voluntary)-: the point at which the parties become
contractually committed to the sale / deal. Once the contracts have been exchanged,
neither party can walk away without incurring liability.
a. To be valid land contract must be: LP(MP)A 1989 s.2
i. Contract must be In writing
ii. Contain all the (expressly) agreed terms
iii. Be signed by both parties
, b. For a variation of a land contract to be valid, it must also comply with these
requirements (McCausland v Duncan Lawrie)
i. ‘incorporation of all the terms’- common practice
ii. Also common practice for both parties to sign identical copies of the
same document, which are then physically exchanged
c. A valid land contract gives the buyer and equitable interest in the land: Estate
Contract (gives a proprietary right, so if seller tries to back out of deal, seller
doesn’t have to settle for damages and can ask the court to enforce the
contract, forcing the seller to acc sell the land by order of Specific
Performance
2. Completion of the deed: compulsory
a. Deed must be used to transfer the land- this is a document that is:
i. Intended as a deed
ii. Validly executed by the seller
iii. Delivered, which done by dating the document
b. An individual executes a deed by signing it in the presence of a witness who
must also attest their signature
3. Registration
a. Unregistered land: requirement for compulsory first registration, transfer of
land = triggering event
b. Registered land: the transfer must be registered to ensure registered title kept
up to date.
i. Registered title may miss certain rights like overriding interests that
may be binding but not on the document.
Registered Land: legal title passes once the transfer is Registered (Stage 3).
Unregistered Land: legal title passes on Completion of the Deed (Stage 2). The unregistered
land must be registered (compulsory first registration) within 2 months of completion, or the
legal title will revert back to the seller.
Transfer of a freehold estate can be achieved by: sale, will, gift, operation of law.
Land Contracts- s.2 LP(MP)A
- Must be inwriting
- Must contain all expressly agreed terms
- Must be signed by both parties
Any variations to contract must comply with above.
Effect of a binding land contract= pass an equitable interest in the land to the buyer, called
an ESTATE CONTRACT
Land contract vs estate contract:
