Contents
Contents 1
WS1 - Third Party Interests, Fixtures & Chattels 2
WS2 & WS3 - Enforceability of Third Party Interests 4
WS4 - Trusts of Land & Co-ownership 7
WS5 - Leases 11
WS6 - Leasehold Covenants 13
WS 7 - Freehold Covenants 16
WS8 - Easements 19
WS9 - Legal Mortgages 23
, WS1 - Third Party Interests, Fixtures & Chattels
- Bernstein: although land is presumed to extend downwards to earth’s centre and upwards to infinity, landowners’
claim to airspace only extends so far as is necessary for them to enjoy their land.
- An Estate is a period of time for which you have a right to possess land
- Freehold Estates also called fee simple absolute in possession, recognised under s1(1)(a) Law of Property Act 1925,
basically equivalent to an estate lasting forever, with outright current ownership.
- ‘fee’ = capable of being inherited
- ‘simple’ = can pass to any class of heir
- ‘absolute’ = estate not limited in any way nor conditional on any event
- ‘in possession’ = entitlement to possess the land now
- Leasehold Estates exist for a term of years absolute, recognised under s1(1)(b) LPA 1925, are inferior to freeholds as
they have limited duration
- Fee simple owners (freehold owners) can grant rights to use land to a tenant for a fixed period of time. The tenant
has a leasehold.
- Tenant must have exclusive possession for fixed/certain duration for it to be a leasehold.
- ‘Exclusive’ = tenant can exclude anyone (even the landlord) from the property.
- ‘Certain duration’ = tenant and landlord both know when lease ends. Can be monthly, annually, every 99 years, etc.
Third Party Interests
Statutory Interests
- s30 Family Law Act 1996 gives non-owning spouse the right to occupy, provided the home is the matrimonial home
and they are legally married. This applies to registered civil partners under the Civil Partnership Act 2004.
Legal Interests
- s1(2) LPA 1925 outlines legal interests of third parties including easements and charges by way of legal mortgage
- Easements are capable of being legal if they are equivalent to fee simple absolute (forever) or term of years absolute
(a certain term). If they are not equivalent, they can only be equitable easements.
- Formalities in s52 LPA 1925 say that a deed is required to create legal estates. Under s1 Law of Property
(Miscellaneous Provisions) Act 1989, a document must be clearly a deed and must be signed, witnessed and delivered
in order to be valid.
- s52(2)(d) LPA 1925 provides the parol lease exception. Leases need not be in writing if they don’t exceed 3 years,
take effect immediately in possession, and granted at the best rent without fine. Applies only to creation, not sale.
Equitable Interests
- s1(3) LPA 1925 shows that any other interests besides those in s1(1) & (2) can only be equitable
- Equitable interests under trusts belong to the beneficiaries of the trust. The trustees have legal ownership.
- Equitable interests without a trust include restrictive covenants and estate contracts
- Restrictive covenants = promise made by covenantor to covenantee that they won’t use their land in a certain way
- Estate contracts = a contract to create or convey a legal estate in the land. Usually where a potential buyer has an
equitable interest.
- Formalities for creating express trusts are that they must be in signed writing (s53(1)(b) LPA). Estate contracts must
be in signed writing including all the terms (s2 LP(MP)A 1989), except auctions & parol lease exception. Equitable
easements and restrictive covenants must be in signed writing (s53(1)(a) LPA). No formalities for an implied trust
interest (s53(2) LPA).
- Licenses are non-proprietary interests (i.e. don’t bind successive owners of land)
- Merely gives permission which prevents you from being a trespasser (Thomas), can be revoked at any time.
- Bare licenses allow you to do something on land for no consideration (e.g. money). You can’t do other things on the
land beyond the permission. Can be revoked
- Contractual licenses have consideration. If revoked, can result in damages/injunction.
, Conveyancing Stages
1. Research/Inspection 2. Signed contract of all terms exchanged 3. Deed executed, money paid, completion.
Fixtures & Chattels
- Fixtures are part of the land which come with the land when purchased
- Chattels are personal property which are not part of the land, unless agreed in the contract
- The two tests were established in Berkley
- Use the Degree of Annexation test first: is it securely attached to the land? Would removing it cause damage? =
fixture
- The Purpose of Annexation test carries more weight: Was the item annexed to enhance the overall
design/architecture of the land? = fixture
- D’Eyncourt: freestanding, easily removed items including tapestries, vases & paintings were considered fixtures since
the were part of the architectural design
- Leigh: Tapestries firmly fixed to the wall were still chattels in this case; it was the only way to display them
- Elitestone Ltd: a bungalow resting on concrete blocks was considered a fixture as it could not be removed without
being destroyed. A house constructed to be removable could be a chattel in some cases though.
- Botham: fitted carpets, curtains, light fittings, gas fires connected only by gas pipes all chattels. Standard (not
custom) white goods are chattels. Fitted kitchens are fixtures.
- Buckland: if item is securely attached, it raises a rebuttable presumption that it is a fixture
- Berkley: Freestanding items are rebuttably presumed to be chattels, even very heavy statues
Contents 1
WS1 - Third Party Interests, Fixtures & Chattels 2
WS2 & WS3 - Enforceability of Third Party Interests 4
WS4 - Trusts of Land & Co-ownership 7
WS5 - Leases 11
WS6 - Leasehold Covenants 13
WS 7 - Freehold Covenants 16
WS8 - Easements 19
WS9 - Legal Mortgages 23
, WS1 - Third Party Interests, Fixtures & Chattels
- Bernstein: although land is presumed to extend downwards to earth’s centre and upwards to infinity, landowners’
claim to airspace only extends so far as is necessary for them to enjoy their land.
- An Estate is a period of time for which you have a right to possess land
- Freehold Estates also called fee simple absolute in possession, recognised under s1(1)(a) Law of Property Act 1925,
basically equivalent to an estate lasting forever, with outright current ownership.
- ‘fee’ = capable of being inherited
- ‘simple’ = can pass to any class of heir
- ‘absolute’ = estate not limited in any way nor conditional on any event
- ‘in possession’ = entitlement to possess the land now
- Leasehold Estates exist for a term of years absolute, recognised under s1(1)(b) LPA 1925, are inferior to freeholds as
they have limited duration
- Fee simple owners (freehold owners) can grant rights to use land to a tenant for a fixed period of time. The tenant
has a leasehold.
- Tenant must have exclusive possession for fixed/certain duration for it to be a leasehold.
- ‘Exclusive’ = tenant can exclude anyone (even the landlord) from the property.
- ‘Certain duration’ = tenant and landlord both know when lease ends. Can be monthly, annually, every 99 years, etc.
Third Party Interests
Statutory Interests
- s30 Family Law Act 1996 gives non-owning spouse the right to occupy, provided the home is the matrimonial home
and they are legally married. This applies to registered civil partners under the Civil Partnership Act 2004.
Legal Interests
- s1(2) LPA 1925 outlines legal interests of third parties including easements and charges by way of legal mortgage
- Easements are capable of being legal if they are equivalent to fee simple absolute (forever) or term of years absolute
(a certain term). If they are not equivalent, they can only be equitable easements.
- Formalities in s52 LPA 1925 say that a deed is required to create legal estates. Under s1 Law of Property
(Miscellaneous Provisions) Act 1989, a document must be clearly a deed and must be signed, witnessed and delivered
in order to be valid.
- s52(2)(d) LPA 1925 provides the parol lease exception. Leases need not be in writing if they don’t exceed 3 years,
take effect immediately in possession, and granted at the best rent without fine. Applies only to creation, not sale.
Equitable Interests
- s1(3) LPA 1925 shows that any other interests besides those in s1(1) & (2) can only be equitable
- Equitable interests under trusts belong to the beneficiaries of the trust. The trustees have legal ownership.
- Equitable interests without a trust include restrictive covenants and estate contracts
- Restrictive covenants = promise made by covenantor to covenantee that they won’t use their land in a certain way
- Estate contracts = a contract to create or convey a legal estate in the land. Usually where a potential buyer has an
equitable interest.
- Formalities for creating express trusts are that they must be in signed writing (s53(1)(b) LPA). Estate contracts must
be in signed writing including all the terms (s2 LP(MP)A 1989), except auctions & parol lease exception. Equitable
easements and restrictive covenants must be in signed writing (s53(1)(a) LPA). No formalities for an implied trust
interest (s53(2) LPA).
- Licenses are non-proprietary interests (i.e. don’t bind successive owners of land)
- Merely gives permission which prevents you from being a trespasser (Thomas), can be revoked at any time.
- Bare licenses allow you to do something on land for no consideration (e.g. money). You can’t do other things on the
land beyond the permission. Can be revoked
- Contractual licenses have consideration. If revoked, can result in damages/injunction.
, Conveyancing Stages
1. Research/Inspection 2. Signed contract of all terms exchanged 3. Deed executed, money paid, completion.
Fixtures & Chattels
- Fixtures are part of the land which come with the land when purchased
- Chattels are personal property which are not part of the land, unless agreed in the contract
- The two tests were established in Berkley
- Use the Degree of Annexation test first: is it securely attached to the land? Would removing it cause damage? =
fixture
- The Purpose of Annexation test carries more weight: Was the item annexed to enhance the overall
design/architecture of the land? = fixture
- D’Eyncourt: freestanding, easily removed items including tapestries, vases & paintings were considered fixtures since
the were part of the architectural design
- Leigh: Tapestries firmly fixed to the wall were still chattels in this case; it was the only way to display them
- Elitestone Ltd: a bungalow resting on concrete blocks was considered a fixture as it could not be removed without
being destroyed. A house constructed to be removable could be a chattel in some cases though.
- Botham: fitted carpets, curtains, light fittings, gas fires connected only by gas pipes all chattels. Standard (not
custom) white goods are chattels. Fitted kitchens are fixtures.
- Buckland: if item is securely attached, it raises a rebuttable presumption that it is a fixture
- Berkley: Freestanding items are rebuttably presumed to be chattels, even very heavy statues
