Land

Question 1

What are the four essential requirements for a document relating to land to qualify as a valid deed under S1 LP(MP)A?

Answer 1

It must be signed, witnessed, delivered, and clearly state that it is a deed.

Question 2

What three requirements must an estate contract (e.g., a contract for sale of land) comply with under S2 LP(MP)A?

Answer 2

It must be in writing, contain all agreed terms, and be signed by all parties.

Question 3

A tenant wants to grant a legal lease orally without a deed. What three conditions must be met for this to be valid under the parol lease exception?

Answer 3

The lease must be for three years or less, must take effect immediately, and must be at market rent without a premium.

Question 4

What process allows a buyer to take land free of equitable interests arising under a trust, and what is the minimum number of trustees they must pay the purchase money to?

Answer 4

Overreaching, which requires the buyer to pay money to at least two trustees (or to a trust corporation).

Question 5

What is the legal status of an easement that is granted for an uncertain duration?

Answer 5

It is an equitable easement.

Question 6

In unregistered land, what must a seller produce to prove their title upon sale?

Answer 6

Title deeds proving ownership of the land for at least 15 years.

Question 7

Pre-1926, how did the enforceability of equitable interests differ from legal interests against third parties?

Answer 7

Legal interests bound the whole world, while equitable interests bound everyone except ‘equity’s darling’.

Question 8

To be considered ‘equity’s darling,’ a purchaser must satisfy five conditions. Name two of these conditions.

Answer 8

1. Acting bona fide – without fraud
2. Must be a purchaser – buyer, mortgagee, tenant taking lease of a property
3. Must be purchasing for value – giving consideration for interest in property
4. Taking legal estate in land
5. Without any knowledge the 3rd party interest exists

• Actual knowledge
• Constructive – would have come to knowledge by inspection and inquiries
• Imputed – solicitor or agent were aware but did not pass on

Question 9

If a restrictive covenant created after 1925 applies to unregistered land, which specific class of land charge must be registered to bind a buyer?

Answer 9

Class D(ii).

Question 10

A contract to grant an equitable lease in unregistered land is made. Which class of land charge must be registered to protect this interest?

Answer 10

Class C(iv) (Equitable lease / Estate contract).

Question 11

In registered land, name three examples of Interests Affecting a Registered Estate (IAREs) that must be protected by notice on the register.

Answer 11

Restrictive covenant, estate contract/equitable lease, or rights under the FLA.

Question 12

What is the general rule regarding when a registrable disposition (like the creation of a legal mortgage) must be registered in registered land?

Answer 12

It must be registered before the buyer’s (or recipient’s) own registration is completed.

Question 13

Liam buys registered land. He discovers the previous owner had granted a five-year legal lease to a tenant who is living there. Why is Liam bound by this unregistered interest?

Answer 13

Legal leases for seven years or less are automatically overriding interests if they exist by the date of completion of the sale.

Question 14

Rachel has an equitable interest under a trust in registered land and is in actual occupation. How can this interest bind a buyer, even if it is not protected by notice?

Answer 14

It may be an overriding interest under Schedule 3, paragraph 2, provided she is in actual occupation.

Question 15

In registered land, where is the burden of an interest (like a legal mortgage or restrictive covenant) typically found on the Land Register?

Answer 15

In the Charges Register.

Question 16

Why cannot a restrictive covenant or an equitable easement qualify as an overriding interest based on actual occupation in registered land?

Answer 16

Actual occupation requires the claimant to be in physical occupation; restrictive covenants and easements do not involve actual occupation.

Question 17

What is the defining characteristic of a joint tenancy regarding ownership and what happens upon the death of a joint tenant?

Answer 17

Tenants are treated as a single entity, and the interest passes to the surviving tenant(s) under the rule of survivorship.

Question 18

When land is co-owned, how is the legal estate always held, and what is the maximum number of people who can hold the legal estate?

Answer 18

It must be held as a joint tenancy, by a maximum of four trustees.

Question 19

Alan, Ben, Carol, and Dave buy a property together. If they are tenants in common, what determines the proportion of equitable ownership each person has?

Answer 19

Ownership is proportionate based on their contributions.

Question 20

Alice and Barry own a property as joint tenants. Alice wants to sever the equitable joint tenancy immediately. What document and intention are required for severance by written notice?

Answer 20

Notice must be in writing (does not need to be signed) and must show a correct intention to bring about severance immediately.

Question 21

Where can notice be served?

Answer 21

• Notice sufficiently served if left at last known place of abode or business
• If it is sent by registered or recorded letter, deemed to be sufficiently serviced if not returned undelivered

Question 22

Name two methods, other than written notice or bankruptcy, by which an equitable joint tenancy can be severed.

Answer 22

Alienation (selling, giving away, mortgaging) or mutual agreement.

Question 23

If two people buy land together, contributing to the purchase price, but the land is only registered in one name, what type of trust is presumed to arise?

Answer 23

A resulting trust, arising in proportion to their contribution to the purchase price.

Question 24

Under the ‘Old Rules’ (pre-1996), why did the original tenant remain bound by lease covenants even after assignment?

Answer 24

Due to privity of contract, the original tenant remained bound for the full term of the lease.

Question 25

When does a landlord have an implied obligation to repair the structure and exterior of a property under the Landlord and Tenant Act (LTA)?

Answer 25

If the tenancy is less than seven years (under ss11-13 LTA).

Question 26

Sarah assigns her commercial lease (governed by the New Rules, post-1996). What is the status of her liability for covenants, and what is the major exception to this rule?

Answer 26

She is automatically released from liability, unless she signed an Authorised Guarantee Agreement (AGA).

Question 27

If a landlord wishes to recover rent arrears (a fixed charge) against a former tenant under the Old Rules, what key step must they take regarding the new tenant?

Answer 27

They must serve an S17 notice on the former tenant within six months of the fixed charge becoming due.

Question 28

In freehold covenants, what mechanism must be in place for the burden of a positive covenant (like maintaining a shared driveway) to pass at common law?

Answer 28

The exception of mutual benefit and burden must apply, where the successor who takes the benefit must accept the relevant burden in the same deed.

Question 29

When assessing if the benefit of a freehold covenant runs at common law, what requirement exists regarding the estates held by both the original covenantee and the new owner enforcing the covenant?

Answer 29

Both parties must have a legal estate (which includes a tenant).

Question 30

According to the test in *Re Ellenborough Park*, name two criteria required for a right to be capable of forming a legal easement.

Answer 30

There must be a dominant and servient tenement, and the right must accommodate the dominant tenement.

Question 31

Why would a claim for a general right to have a view over a neighbour's land likely fail the *Re Ellenborough Park* test?

Answer 31

Because the nature of the right must not be too wide or vague.

Question 32

If Sam sells part of his land to Ben, and Ben requires an implied legal easement using the rule in *Wheeldon v Burrows*, what characteristic must the use have had while Sam owned both parts?

Answer 32

The right must have been: 1) Continuous and apparent 2) Necessary for reasonable enjoyment of the land 3) Being used as a quasi-easement by the seller at the time of sale.

Question 33

Adam has used a neighbour's shortcut across their field for 25 years without secrecy, force, or permission. What method of easement creation is Adam likely relying on to claim a legal easement?

Answer 33

Prescription.

Question 34

What is the standard legal mechanism used today to create a legal mortgage, and where must this be registered in registered land?

Answer 34

Use a charge by deed expressed to be by way of legal mortgage; it must be registered on the Charges Register.

Question 35

If a borrower defaults on a legal mortgage, what must typically have passed before the lender can commence a debt action to recover capital arrears?

Answer 35

The legal date for redemption (usually set one month from the date of the mortgage).

Question 36

When a lender exercises its power of sale, what happens to the balance of the proceeds of sale after paying the costs of the sale and paying off the selling mortgagee’s own mortgage?

Answer 36

The balance must be paid to the next person entitled (e.g., a lower priority mortgage or the mortgagor).

Question 37

When is power of sale exercisable in mortgage default?

Answer 37

(1) Interest 2+ months arrears (2) 3 months’ non-compliance with repayment notice (3) Breach of deed term.

Question 38

Which interests can take priority over mortgages?

Answer 38

(1) Registered dispositions/IAREs pre-mortgage (2) Overriding interests at completion (e.g. short leases, easements, actual occupation).

Question 39

Does actual occupation bind an acquisition mortgage?

Answer 39

Usually no, but may bind remortgage if occupier present at time.

Question 40

What are the rules for action for debt?

Answer 40

Must notify tenant within 6 months.

Question 41

What is the remedy of commercial rent arrears recovery?

Answer 41

A process where the landlord can recover unpaid rent by serving a 7-day notice If necessary, using an enforcement agent to collect the arrears.

Question 42

Name the four unities required for a joint tenancy.

Answer 42

Time, Title, Interest, Possession

Question 43

If one unity is missing, what type of co-ownership must apply?

Answer 43

Tenancy in common

Question 44

Example: A and B buy land "equally" under a deed. What type of co-ownership does this wording suggest?

Answer 44

Tenancy in common (words of severance)

Question 45

When does equity presume a tenancy in common? (give one situation)

Answer 45

Where property is partnership property / contributions are unequal / multiple lenders

Question 46

What form must written notice of severance take?

Answer 46

In writing, with immediate intention, properly served

Question 47

Is a written severance notice valid if unsigned but clearly states intention?

Answer 47

Yes

Question 48

How is notice deemed served if sent by registered post?

Answer 48

Deemed served unless returned undelivered

Question 49

A solicitor acts for the owner of a small freehold hotel which is subject to a mortgage, created by deed, in favour of a bank. The owner is struggling financially having paid for some recent building work to his house and, as a result of that, has not made any mortgage payments for the last 3 months. The hotel is currently worth £750,000 and there is £800,000 owing on the mortgage. The bank wants to take some action to recover the outstanding arrears but does not want to terminate the mortgage at the moment. Which of the following describes the best course of action for the bank to take? A) Pursue a debt action against the owner for the outstanding arrears of mortgage payments. B) Take possession of the hotel and then apply to the court for an order for sale. C) Appoint a receiver to manage and receive income from the hotel

Answer 49

C is correct - The hotel is generating income which could be utilised to pay the arrears and on-going mortgage instalments. A receiver is treated as the agent of the borrower and therefore, the bank will not be directly accountable to the borrower for any mismanagement by the receiver. The power to appoint a receiver is implied into every mortgage by deed (but is invariably provided for expressly in the mortgage deed). Option A is not the best answer. A debt action is possible but will only be effective if the borrower has the means to pay and the facts indicate that the borrower is struggling financially B - an immediate sale of the hotel will bring the mortgage to an end and, in any event, is likely to result in a shortfall which will not cover the arrears

Question 50

Who needs to sign an equitable easement?

Answer 50

Minimum documentary formalities are that a written document is **signed by the person granting the easement** Different to equitable lease which must be signed by both parties

Question 51

Two business partners buy a registered property together to use for their business’ headquarters. Their solicitor advises them to hold the beneficial interest as tenants as common. How should their beneficial interest be protected on the title of the property? A) As a restriction in the proprietorship register. B) As a notice in the proprietorship register.

Answer 51

A is correct The parties’ beneficial interest as tenants in common will be protected on the **register of title by a restriction and the proprietorship register**. A restriction is used to prevent any dealing with the land otherwise than in accordance with the terms of the restriction.

Question 52

Can an easement be granted forever to be legal?

Answer 52

Yes - it can be for a certain duration or forever Only not legal when it's for uncertain duration e.g. for as long as X owns the house

Question 53

Two clients rented a cottage in the grounds of a big house. Their landlord lived in the big house. Ten years ago, the landlord gave the clients permission to use a path which crossed his garden as a short cut to get to the main road where there was a bus stop. This saved them a 10-minute walk. Last year the landlord decided to sell both the big house and the cottage. The clients were happy to be able to buy the cottage. The landlord has now sold the big house and since the purchaser of the big house has moved in, they have built a large fence around the garden with no access points to allow the clients to cross the garden, as they used to. When the clients challenged the new purchaser about this the new purchaser became angry and told them it was their land and that the clients had no right to cross it. **Do the clients have any legal right to cross the garden of the big house?** D) Yes, because under statute an implied legal easement has arisen. E) Yes, because the rule in Wheeldon v Burrows will apply.

Answer 53

D - s. 62 LPA 1925 will convert a license into an easement where the occupier of land (in this scenario the clients) has been permitted to undertake some activity on the land owned by another (here the landlord / original owner) and the land is then sold / leased to them E - the rule in *Wheeldon v Burrows* does not apply as there was diversity of occupation This applies to convert ‘quasi-easements’ into easements when a landowner sells part of their land. Ordinarily, the land must be in **common ownership and occupation** prior to the sale of part. In this case, there was diversity of occupation (with the clients occupying the cottage and the landlord/seller occupying the big house).

Question 54

The freehold owner of a shop agreed to give exclusive possession of the shop to a jewellery designer for a period of three years. The agreement, which contained all the terms agreed between the parties, was contained in a document which only the jewellery designer signed. The jewellery designer paid a premium of £5,000 to the freehold owner and took possession of the shop immediately afterwards. The document provided for the jewellery designer to pay a monthly rent, which represented the market rent for retail properties of that size in that area. **What is the nature of the jewellery designer’s interest in the shop?** B) Legal periodic lease for a period of 1 month C) Equitable fixed term lease for 3 years E) A license for a fixed term of 3 years

Answer 54

E is correct - A license has been created as the formalities and requirements for creating a legal lease (parol lease) haven't been satisfied as premium paid It has only been signed by the jewellry designer and **not the freehold owner** so it's not an equitable lease Requirements for equitable lease: in writing, incorporate all the agreed terms and be signed by or on behalf of all parties

Question 55

Does a legal mortgage (or other registrable dispositions) become legal when they are registered or created?

Answer 55

They must be registered to become fully legal (and enforceable against a buyer of the land)

Question 56

Where is an implied trust in registered land recorded?

Answer 56

As a restriction on the Proprietorship Register