FUNDAMENTAL AND PERVASIVE CONCEPTS OF LAND LAW
Introduction to Estates and Third Party Interests in Land
Definition of property
- The rights that confer upon a person a degree of control over a resource
What is Land?
Definition in s205(1)(ix) of the Law Property Act 1925 ‘land’ will include
1) The land itself
2) All buildings
3) Mines
4) Minerals
L
5) An Easement
6) A right, privilege or benefit
GD
Fixtures are Part of the Land
ce
Chattel is an item of movable property (such as furniture, pictures, books, a motor car), unless
you attach them, they are undoubtedly chattels, by attaching them, they have be converted into
fixtures
A fixture is treated as though it is part of the land to which it is attached
A
Two Tests to Identify a Fixture (Berkley v Poulett [1977] 1 EGLR 86)
1) The method and degree of annexation
a) Requires there to be some degree of physical annexation to land
b) Legal maxim is whatever is attached to the soil becomes part of it
2) The object and purpose of annexation
a) Reason for annexing the chattel
Two main exceptions to the rule that you cannot remove fixtures
1) A person who is selling land may include a provision in the contract for sale that gives a
right to remove fixtures
2) The person who has affixed the object is a tenant
,Concepts of ownership
The Doctrine of Tenure
- Concerns the way in which land is held - from whom and on what terms
- Lost much importance although it is still technically correct to say that only the Crown
owns land whilst everyone else is a ‘tenant’ holding immediately or mediately of the
Crown
The Concept of the Estate
L
GD
- An Estate is a period of time
ce
- Whilst you own an estate in land you have the right to enjoy or possess that land, or to
receive any rents or profits produced from that land
- There are two estates in land which are recognised by the law today by the Law of
Property Act 1925
Estates in Land
A
Section 1(1)(a) recognises that an estate in fee simple absolute possession is capable of
existing at law, this is known as ‘freehold’ or the ‘freehold estate’.
- ‘Fee’ denotes that the estate is one that is capable of being inherited
- ‘Simple’ signifies that it may pass to any class of heir
,Relationship between Common Law and Equity
Freehold estate and leasehold estate are recognised at common law
Equity and the Concept of Trust
Where there is a trust of land, the legal estate is held by the trustee and the equitable interest is
held by the beneficiary. There may be more than one trustee and there may be more than one
beneficiary
Legal Ownership and Equitable Ownership
L
GD
Two types of equity:
ce
1) A legal one (recognised by the common law)
2) A equitable one (recognised by equity)
The legal owner has rights recognised at common law, whereas the equitable owner has rights
recognised in equity
A
Third Party Rights and Interests over Land
Legal Interests
- The five interests which are capable of being legal interests are listed in s1(2) of the Law
of Property Act 1925 (the following two are the most important)
1. An easement, right or privilege in or over land for an interest equivalent to an
estate in fee simple absolute in possession or a term of years absolute
2. A charge by way of legal mortgage
An easement is a right that is attached to one piece of land and imposes a corresponding
burden on another piece of land
A mortgage is an interest in land given as security for a loan
, Legal and Equitable Interests
- s1(2) and s1(3) of the Law of Property Act 1925
L
Equitable Interests
GD
- If an estate or interest in land does not fall within the lists in s1(1) or (2) of the Law of
Property Act 1925, it can only take effect in equity
There are two types of equitable interest
1) The right of beneficiaries under a trust
2) Equitable interests in land where no trust in involved
ce
Equitable Interests under Trust
The trust structure enables the legal estate to be held by the trustee(s) for the benefit of the
person(s) who has (have) the equitable interest. This may be seen in the diagram below
A
Two types of ownership
1) The trustee has the legal ownership of the land and therefore has rights recognised at
common law
2) The beneficiary has the equitable ownership of the land and therefore has rights
recognised in equity
Introduction to Estates and Third Party Interests in Land
Definition of property
- The rights that confer upon a person a degree of control over a resource
What is Land?
Definition in s205(1)(ix) of the Law Property Act 1925 ‘land’ will include
1) The land itself
2) All buildings
3) Mines
4) Minerals
L
5) An Easement
6) A right, privilege or benefit
GD
Fixtures are Part of the Land
ce
Chattel is an item of movable property (such as furniture, pictures, books, a motor car), unless
you attach them, they are undoubtedly chattels, by attaching them, they have be converted into
fixtures
A fixture is treated as though it is part of the land to which it is attached
A
Two Tests to Identify a Fixture (Berkley v Poulett [1977] 1 EGLR 86)
1) The method and degree of annexation
a) Requires there to be some degree of physical annexation to land
b) Legal maxim is whatever is attached to the soil becomes part of it
2) The object and purpose of annexation
a) Reason for annexing the chattel
Two main exceptions to the rule that you cannot remove fixtures
1) A person who is selling land may include a provision in the contract for sale that gives a
right to remove fixtures
2) The person who has affixed the object is a tenant
,Concepts of ownership
The Doctrine of Tenure
- Concerns the way in which land is held - from whom and on what terms
- Lost much importance although it is still technically correct to say that only the Crown
owns land whilst everyone else is a ‘tenant’ holding immediately or mediately of the
Crown
The Concept of the Estate
L
GD
- An Estate is a period of time
ce
- Whilst you own an estate in land you have the right to enjoy or possess that land, or to
receive any rents or profits produced from that land
- There are two estates in land which are recognised by the law today by the Law of
Property Act 1925
Estates in Land
A
Section 1(1)(a) recognises that an estate in fee simple absolute possession is capable of
existing at law, this is known as ‘freehold’ or the ‘freehold estate’.
- ‘Fee’ denotes that the estate is one that is capable of being inherited
- ‘Simple’ signifies that it may pass to any class of heir
,Relationship between Common Law and Equity
Freehold estate and leasehold estate are recognised at common law
Equity and the Concept of Trust
Where there is a trust of land, the legal estate is held by the trustee and the equitable interest is
held by the beneficiary. There may be more than one trustee and there may be more than one
beneficiary
Legal Ownership and Equitable Ownership
L
GD
Two types of equity:
ce
1) A legal one (recognised by the common law)
2) A equitable one (recognised by equity)
The legal owner has rights recognised at common law, whereas the equitable owner has rights
recognised in equity
A
Third Party Rights and Interests over Land
Legal Interests
- The five interests which are capable of being legal interests are listed in s1(2) of the Law
of Property Act 1925 (the following two are the most important)
1. An easement, right or privilege in or over land for an interest equivalent to an
estate in fee simple absolute in possession or a term of years absolute
2. A charge by way of legal mortgage
An easement is a right that is attached to one piece of land and imposes a corresponding
burden on another piece of land
A mortgage is an interest in land given as security for a loan
, Legal and Equitable Interests
- s1(2) and s1(3) of the Law of Property Act 1925
L
Equitable Interests
GD
- If an estate or interest in land does not fall within the lists in s1(1) or (2) of the Law of
Property Act 1925, it can only take effect in equity
There are two types of equitable interest
1) The right of beneficiaries under a trust
2) Equitable interests in land where no trust in involved
ce
Equitable Interests under Trust
The trust structure enables the legal estate to be held by the trustee(s) for the benefit of the
person(s) who has (have) the equitable interest. This may be seen in the diagram below
A
Two types of ownership
1) The trustee has the legal ownership of the land and therefore has rights recognised at
common law
2) The beneficiary has the equitable ownership of the land and therefore has rights
recognised in equity
