LAND LAW- EASEMENT (PROBLEM QUESTION AND
ANSWER) LATEST 2023 WITH ANSWERS
What is a right in rem, as contrasted to a right in personam? - ANSWER: Right in rem
= property right.
Right in personam = personal right.
What is the highest possible estate in land? - ANSWER: The fee simple absolute in
possession (LPA 1925, s 1(1)(a)) - the freehold estate.
What is a leasehold estate? - ANSWER: Where a freehold owner grants a lesser
estate, which is of a certain duration, the estate granted is a term of years absolute
(LPA 1925, s 1(1)(b) LPA), which is more commonly known as the leasehold estate or
simply a lease.
What is a sub-lease? - ANSWER: Where the leaseholder grants a lease of a lesser
duration out of their own leasehold, while still retaining the original lease.
What are the three legal interests in land under s 1 LPA 1925? What are all other
interests? - ANSWER: (1) Easement (granted forever or for a certain term)
(2) Legal mortgage
(3) Rights of entry
All other interests take effect as equitable interests.
What is the importance of the distinction between legal and equitable interests? -
ANSWER: Remedies:
If legal interest infringed, victim has wide range of remedies available as of right.
If equitable interest infringed, victim is not entitled to damages as of right - remedies
are at discretion of court.
Enforcement
What are the equitable interests in land? - ANSWER: Freehold covenants, estate
contracts, interests in a trust of land and easements franted for an uncertain term.
What are the four ways in which a transfer of a freehold estate can be achieved? -
ANSWER: (1) Sale
(2) Will
(3) Gift
(4) Operation of law - automatic transfer in certain situations, eg bankruptcy
What are the three stages required for the sale of a freehold? - ANSWER: (1)
Exchange of contracts
(2) Completion of the deed
(3) Registration
,What are the requirements of LP(MP)A 1989, s 2 for having a valid land contract? -
ANSWER: 1. The contract must be in writing.
2. It must contain all the expressly agreed terms.
3. It must be signed by both parties.
What is the deed requirement for sale of land under s 52(1) LPA 1925? - ANSWER: A
legal estate must be transferred or created by deed.
What are the requirements of a valid deed under s 1 LP(MP)A 1989? What form of
transfer deed is used? - ANSWER: A deed must be clear on the face of the document
that it is intended to be a deed.
The deed must be validly executed.
The deed must be delivered.
A standard form of transfer deed is used, called a TR1, which is a form prescribed by
the LR.
What is valid execution of a deed? - ANSWER: Valid execution means that where the
grantor (ie the seller) is an individual, then the deed must be signed by the seller in
the presence of a witness.
The witness needs to sign the deed to confirm that they have witnessed the signing
of the deed by the individual entering into that deed. This is described as 'attesting'
the signature in the statute.
NB: there is no legal requirement for a buyer to sign the deed - but in practice both
parties tend to execute the deed.
How is a deed validly delivered? - ANSWER: Delivery requires an acknowledgement
that a person entering into a deed intends to be formally bound by its provisions.
In practice, delivery takes place by dating the document, which the parties' solicitors
will do.
If land sold is unregistered, what is the significance of completion of the deed? -
ANSWER: If the land being transferred is unregistered land, legal title passes at this
point.
The sale then triggers a legal requirement to register the land for the first time at the
LR (LRA 2002, ss 4 and 6).
When does legal title pass upon sale of a freehold for registered land? - ANSWER:
Legal title does not transfer until registration has taken place (LRA 2002, s 27(1)).
What are the consequences of non-registration of a sale of unregistered land? -
ANSWER: The new owner must register the land on the land register for the first
,time (first registration) within 2 months of completion, otherwise the legal title will
revert back to the seller (LRA 2002, ss 4 and 6).
If the land being transferred is unregistered land, does the transfer need to be
registered? - ANSWER: Yes, the land transfer will trigger the requirement to register
the land for the first time.
Which of the 3 stages of transferring a freehold estate is not necessary to effect a
legal transfer of the title?
(a) Contract
(b) Registration
(c) Deed
(d) All stages are necessary - ANSWER: (a) Contract
If a piece of registered land is transferred, at what point is the buyer recognised as
being the legal owner of the land? - ANSWER: Registration.
A buyer and seller of land agree that the buyer will buy a piece of land from the
seller for a price of £100,000. They instruct solicitors. The buyer's solicitor carries out
various investigations into the land before the buyer confirms it is happy to proceed.
The terms of the agreement are put into a document, which is signed the seller in
the presence of a witness. The document is then dated.
Which of the following statement correctly explains the validity of this document?
(a) The document is invalid because it has not been delivered
(b) The document is valid because it complies with LP(MP)A 1989, s 1
(c) The document is invalid because it has not been signed by both the buyer and the
seller
(d) The document is valid because it complies with LP(MP)A 1989, s 2
(e) The document is invalid because the witnessed has not attested his signature -
ANSWER: (c) The document is invalid because it has not been signed by both the
buyer and the seller.
Can you have an oral land contract? - ANSWER: No - because the contract must be in
writing - LP(MP)A 1989, s 2.
What does it mean in s 2 LP(MP)A 1989 that the document must contain all the
expressly agreed terms? - ANSWER: The contractual terms may be incorporated into
the contractual document either by being set out in the document or by referring to
some other document (by reference)
What are the Law Society standard conditions of sale? - ANSWER: For both
commercial and residential sale transactions, there are Law Society standard
conditions of sale, which are incorporated by reference into the majority of contracts
for the sale of land.
, What are the conditions for a land contract to be varied? - ANSWER: Whenever a
material term in a land contract is varied, that variation must also comply with
LP(MP)A 1989, s 2.
What is the proprietary effect of an estate contract? - ANSWER: The effect of a
binding land contract is to pass an equitable interest in the land to the buyer, called
an estate contract.
Give an example of two common estate contracts which create a contractual right to
a legal estate. - ANSWER: Sale contract = to record terms of agreement and to
commit themselves legally to the purchase/sale.
Agreement for lease/contract for lease = prior to grant of lease, landlord and tenant
may choose to enter into a contract to commit themselves to enter the lease in the
future.
What is an Option Agreement? - ANSWER: A type of estate contract that gives
another party a right, during the option period, to serve notice that they wish to buy
the land.
If notice is served during the option period, the seller must sell the land to the buyer.
However, the buyer is not obliged to exercise the option.
What is a right of pre-emption? - ANSWER: A type of estate contract that gives
another party a right of first refusal in the event the land owner decides to sell their
land.
What are the two ways that a land contract can be created? - ANSWER: Either
deliberately, or that the parties try to create a valid deed (a legal interest) but fail.
When will the court recognise an equitable interest where a failed deed occurs? -
ANSWER: Provided
(1) There is a document which complies with LP(MP)A 1989, s 2 and
(2) The remedy of specific performance is available.
So the parties will get an equitable interest rather than a legal one.
Are estate contracts enforceable? - ANSWER: Yes - it is a proprietary right in land, so
capable of binding and being specifically enforceable against third parties (ie
subsequent owners of the freehold estate).
In order to be binding on third party purchasers, an estate contract must be
protected.
NB if the interest holder fails to protect the estate contract and the third party is a
donee (someone who is gifted or inherits the land) they will be bound by a properly
created estate contract, regardless of registration).
ANSWER) LATEST 2023 WITH ANSWERS
What is a right in rem, as contrasted to a right in personam? - ANSWER: Right in rem
= property right.
Right in personam = personal right.
What is the highest possible estate in land? - ANSWER: The fee simple absolute in
possession (LPA 1925, s 1(1)(a)) - the freehold estate.
What is a leasehold estate? - ANSWER: Where a freehold owner grants a lesser
estate, which is of a certain duration, the estate granted is a term of years absolute
(LPA 1925, s 1(1)(b) LPA), which is more commonly known as the leasehold estate or
simply a lease.
What is a sub-lease? - ANSWER: Where the leaseholder grants a lease of a lesser
duration out of their own leasehold, while still retaining the original lease.
What are the three legal interests in land under s 1 LPA 1925? What are all other
interests? - ANSWER: (1) Easement (granted forever or for a certain term)
(2) Legal mortgage
(3) Rights of entry
All other interests take effect as equitable interests.
What is the importance of the distinction between legal and equitable interests? -
ANSWER: Remedies:
If legal interest infringed, victim has wide range of remedies available as of right.
If equitable interest infringed, victim is not entitled to damages as of right - remedies
are at discretion of court.
Enforcement
What are the equitable interests in land? - ANSWER: Freehold covenants, estate
contracts, interests in a trust of land and easements franted for an uncertain term.
What are the four ways in which a transfer of a freehold estate can be achieved? -
ANSWER: (1) Sale
(2) Will
(3) Gift
(4) Operation of law - automatic transfer in certain situations, eg bankruptcy
What are the three stages required for the sale of a freehold? - ANSWER: (1)
Exchange of contracts
(2) Completion of the deed
(3) Registration
,What are the requirements of LP(MP)A 1989, s 2 for having a valid land contract? -
ANSWER: 1. The contract must be in writing.
2. It must contain all the expressly agreed terms.
3. It must be signed by both parties.
What is the deed requirement for sale of land under s 52(1) LPA 1925? - ANSWER: A
legal estate must be transferred or created by deed.
What are the requirements of a valid deed under s 1 LP(MP)A 1989? What form of
transfer deed is used? - ANSWER: A deed must be clear on the face of the document
that it is intended to be a deed.
The deed must be validly executed.
The deed must be delivered.
A standard form of transfer deed is used, called a TR1, which is a form prescribed by
the LR.
What is valid execution of a deed? - ANSWER: Valid execution means that where the
grantor (ie the seller) is an individual, then the deed must be signed by the seller in
the presence of a witness.
The witness needs to sign the deed to confirm that they have witnessed the signing
of the deed by the individual entering into that deed. This is described as 'attesting'
the signature in the statute.
NB: there is no legal requirement for a buyer to sign the deed - but in practice both
parties tend to execute the deed.
How is a deed validly delivered? - ANSWER: Delivery requires an acknowledgement
that a person entering into a deed intends to be formally bound by its provisions.
In practice, delivery takes place by dating the document, which the parties' solicitors
will do.
If land sold is unregistered, what is the significance of completion of the deed? -
ANSWER: If the land being transferred is unregistered land, legal title passes at this
point.
The sale then triggers a legal requirement to register the land for the first time at the
LR (LRA 2002, ss 4 and 6).
When does legal title pass upon sale of a freehold for registered land? - ANSWER:
Legal title does not transfer until registration has taken place (LRA 2002, s 27(1)).
What are the consequences of non-registration of a sale of unregistered land? -
ANSWER: The new owner must register the land on the land register for the first
,time (first registration) within 2 months of completion, otherwise the legal title will
revert back to the seller (LRA 2002, ss 4 and 6).
If the land being transferred is unregistered land, does the transfer need to be
registered? - ANSWER: Yes, the land transfer will trigger the requirement to register
the land for the first time.
Which of the 3 stages of transferring a freehold estate is not necessary to effect a
legal transfer of the title?
(a) Contract
(b) Registration
(c) Deed
(d) All stages are necessary - ANSWER: (a) Contract
If a piece of registered land is transferred, at what point is the buyer recognised as
being the legal owner of the land? - ANSWER: Registration.
A buyer and seller of land agree that the buyer will buy a piece of land from the
seller for a price of £100,000. They instruct solicitors. The buyer's solicitor carries out
various investigations into the land before the buyer confirms it is happy to proceed.
The terms of the agreement are put into a document, which is signed the seller in
the presence of a witness. The document is then dated.
Which of the following statement correctly explains the validity of this document?
(a) The document is invalid because it has not been delivered
(b) The document is valid because it complies with LP(MP)A 1989, s 1
(c) The document is invalid because it has not been signed by both the buyer and the
seller
(d) The document is valid because it complies with LP(MP)A 1989, s 2
(e) The document is invalid because the witnessed has not attested his signature -
ANSWER: (c) The document is invalid because it has not been signed by both the
buyer and the seller.
Can you have an oral land contract? - ANSWER: No - because the contract must be in
writing - LP(MP)A 1989, s 2.
What does it mean in s 2 LP(MP)A 1989 that the document must contain all the
expressly agreed terms? - ANSWER: The contractual terms may be incorporated into
the contractual document either by being set out in the document or by referring to
some other document (by reference)
What are the Law Society standard conditions of sale? - ANSWER: For both
commercial and residential sale transactions, there are Law Society standard
conditions of sale, which are incorporated by reference into the majority of contracts
for the sale of land.
, What are the conditions for a land contract to be varied? - ANSWER: Whenever a
material term in a land contract is varied, that variation must also comply with
LP(MP)A 1989, s 2.
What is the proprietary effect of an estate contract? - ANSWER: The effect of a
binding land contract is to pass an equitable interest in the land to the buyer, called
an estate contract.
Give an example of two common estate contracts which create a contractual right to
a legal estate. - ANSWER: Sale contract = to record terms of agreement and to
commit themselves legally to the purchase/sale.
Agreement for lease/contract for lease = prior to grant of lease, landlord and tenant
may choose to enter into a contract to commit themselves to enter the lease in the
future.
What is an Option Agreement? - ANSWER: A type of estate contract that gives
another party a right, during the option period, to serve notice that they wish to buy
the land.
If notice is served during the option period, the seller must sell the land to the buyer.
However, the buyer is not obliged to exercise the option.
What is a right of pre-emption? - ANSWER: A type of estate contract that gives
another party a right of first refusal in the event the land owner decides to sell their
land.
What are the two ways that a land contract can be created? - ANSWER: Either
deliberately, or that the parties try to create a valid deed (a legal interest) but fail.
When will the court recognise an equitable interest where a failed deed occurs? -
ANSWER: Provided
(1) There is a document which complies with LP(MP)A 1989, s 2 and
(2) The remedy of specific performance is available.
So the parties will get an equitable interest rather than a legal one.
Are estate contracts enforceable? - ANSWER: Yes - it is a proprietary right in land, so
capable of binding and being specifically enforceable against third parties (ie
subsequent owners of the freehold estate).
In order to be binding on third party purchasers, an estate contract must be
protected.
NB if the interest holder fails to protect the estate contract and the third party is a
donee (someone who is gifted or inherits the land) they will be bound by a properly
created estate contract, regardless of registration).
