Land 1 - Lecture (2017)

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Adam Baker Law 2270 and 3270

Land Law 2017-2018

Land Law: Topic One

General principles and concepts

1
1. The Concept of Property
1.1 Meaning of ‘property’

The term ‘property’ can be used in three senses.


1. The Concept of Property
1.2 Real property and personal property

The terms ‘real property’


and ‘realty’ describe both
land (as a physical entity)
and proprietary rights in
it, with the exception of
leasehold estates.
1. The Concept of Property
1.2 Real property and personal property

l
Property

Real Personal
(land + rights in (chattels (and rights in
land (except them); choses in action;
leasehold estates) and leasehold estates)
2. Tangible Sense of Land
2.1 Introduction

In this section we are concerned with ‘land’ in the


sense of a physical asset.
2. Tangible Sense of ‘Land’
2.2 The ground below the surface

Edwards v Lee’s Administrator


(1936)

Edwards’ land included the entrance to a cave. He


allowed guests to visit the cave for a fee.

A third of the cave lied under the surface of Lee’s land.


Lee successfully sued Edwards in trespass to land.
2. Tangible Sense of ‘Land’
2.2 The ground below the surface

In Bocardo SA v Star Energy (2011), it was held that an


owner’s entitlement extends down to the point at
which physical features (such as pressure and
temperature) render the concept of ownership absurd.
2. Tangible Sense of ‘Land’
2.2 The ground below the surface

There are nevertheless certain exceptions to the


principle of subterranean ownership.
2. Tangible Sense of ‘Land’
2.3 The surface

Ownership of the surface of ‘land’ extends to things


such as trees, hedges, plants and flowers, whether
cultivated or wild.

More difficulties can be caused


by the status of constructions and
other items brought onto the
Land.
2. Tangible Sense of ‘Land’
2.3 The surface

Constructions include things like walls, houses and


garages. Very often these will be deemed to have
become ‘part and parcel of’ the relevant land.
2. Tangible Sense of ‘Land’
2.3 The surface

The same issue also arises with objects other than


constructions that are brought onto land.
2. Tangible Sense of ‘Land’
2.3 The surface

The burden of proof in both instances turns on whether


the item is attached to the land or merely rests on its
own weight.
2. Tangible Sense of ‘Land’
2.3 The surface

The key issue in either event is the objective purpose


for which the item is present; that is, whether it is there
to form a lasting improvement to the land or merely
present so that it can be enjoyed of itself.
2. Tangible Sense of ‘Land’
2.3 The surface

Botham v TSB Bank Plc (1996)

Fixtures: bathroom fittings (e.g.


towel rails, taps); and kitchen
units (e.g. fitted sink).

Chattels: fitted carpets, curtains and blinds; kitchen


white goods; light fittings.
2. Tangible Sense of ‘Land’
2.3 The surface

D’Eyncourt v Gregory (1866)

Statues, figures and vases,


though not secured to the
land in any way, were held to
be fixtures because they were
regarded as part of the
architectural design of the
house.
2. Tangible Sense of ‘Land’
2.3 The surface

Elitestone v Morris (1997)

A bungalow rested on concrete


pillars which were attached to
the ground. The bungalow could only be removed by
being demolished.

Held to be part and parcel of the land.


2. Tangible Sense of ‘Land’
2.4 Airspace

‘Land’ extends to such portion of the above airspace as


is necessary for the reasonable enjoyment of it at
ground level. Any unauthorised entry into this airspace
is hence actionable as a trespass to land.
2. Tangible Sense of ‘Land’
2.4 Airspace

Bernstein v Skyways & General Ltd (1978)

Ds flew over the P’s land for


the purpose of taking an
aerial photograph of their
property.

P’s claim in trespass to land


failed.
3. Proprietary Rights in Land
Four questions for sections 3.1–3.2

1) How do proprietary and personal rights differ?

2) How do we decide whether an owner of land has


created a proprietary right?

3) How can novel types of property right come about?

4) What role do the courts play with recognised


property rights?
3. Proprietary Rights in Land
3.1 Proprietary and personal rights

Owners of land can confer both ‘property rights’ (also


called ‘proprietary rights’ and ‘interests in land’) over
their land on other persons.

Property rights over land very significant, as they


capable of enforcement against third parties.
3. Proprietary Rights in Land
3.1 Proprietary and personal rights

Example

B is the owner of a field.


B confers a proprietary right
on A to walk across that field.

If B sells the land to C, A can assert their right to cross


the field against C.
3. Proprietary Rights in Land
3.1 Proprietary and personal rights

Return to our previous example. Assume that D, a


neighbour, causes an obstruction on the field that
substantially interferes with A’s right to walk across it.

A may claim damages (/an injunction) against D.


3. Proprietary Rights in Land
3.1 Proprietary and personal rights

• By operation of law: this is when a property right


arises automatically, on certain conditions being met.
If they are, it does not matter whether the owner
intended the right to arise or not.
3. Proprietary Rights in Land
3.1 Proprietary and personal rights

• By intention: this heading covers various situations


when the landowner objectively intended the right
to arise.
3. Proprietary Rights in Land
3.1 Proprietary and personal rights

Personal rights are


enforceable only
against the other
party/parties to them.
3. Proprietary Rights in Land
3.1 Proprietary and personal rights

Example

A owns a cinema. Z purchases a ticket to see a film at


the cinema. This is merely a contractual right (a
‘contractual licence’).

If, before Z sees the film, A has


sold the cinema to B, Z has no
right against B to see the film.
3. Proprietary Rights in Land
3.1 Proprietary and personal rights

Hill v Tupper (1863)

A company owned a canal. It gave Hill the ‘exclusive


right’ to put pleasure boats for hire on the canal.

The right was


considered to be a
contractual one only.
3. Proprietary Rights in Land
3.1 Proprietary and personal rights

Tupper put rival pleasure boats on the canal. Hill tried


unsuccessfully to sue Tupper. The contractual right was
held to be good only against the canal owner.
3. Proprietary Rights in Land
3.2 Whether a property right has been created

Only certain types of right can be proprietary. Case law


(sometimes combined with statute) sets down the
requirements for each type of proprietary right.
3. Proprietary Rights in Land
3.2 Whether a property right has been created

When deciding whether a property right has arisen by


operation of law, one asks whether or not the
conditions for this to happen have been met.

In all other situations, one takes the


document/agreement alleged to have created a
property right, and asks what right was objectively
intended.
3. Proprietary Rights in Land
3.2 Whether a property right has been created

Example: A owns
some undeveloped
land. A agrees in
writing that B may
exercise her dogs on
it.

The agreement states that the right is to be


proprietary.
3. Proprietary Rights in Land
3.2 Whether a property right has been created

Land law recognises no proprietary right of dog


exercising. The right is therefore only personal.

If matters were otherwise, B could


enforce her right against later
owners of the land. This could
otherwise impede any productive
use of it.
3. Proprietary Rights in Land
3.2 Whether a property right has been created

The list of rights that can be proprietary has not stood


still over time. Before 1926, new ones arose when the
courts decided to enforce them against third parties
3. Proprietary Rights in Land
3.2 Whether a property right has been created

Various cases have concerned new alleged property


rights, whether alleged to arise by either intention or
operation of law.

The acceptance or rejection of these claims shows the


role of policy considerations in land law.
3. Proprietary Rights in Land
3.2 Whether a property right has been created

The ‘deserted wife’s equity’ was considered by the HL


in National Provincial Bank Ltd v Ainsworth (1965).

When a husband who owned the matrimonial home


deserted their wife, the CA held that the wife gained a
proprietary right to remain in that home. It would only
end on divorce/a court order.
3. Proprietary Rights in Land
3.2 Whether a property right has been created

The ‘difficulties are to my mind so overwhelming and


show so clearly that this right of the wife has no place
in the law of property’: at 1250, per Lord Wilberforce.
3. Proprietary Rights in Land
3.2 Whether a property right has been created

‘[A proprietary right] must be definable, identifiable by


third parties, capable in its nature of assumption by
third parties, and have some degree of permanence or
stability. The wife's right has none of these qualities, it
is characterised by the reverse of them.’

At 1247, per Lord Wilberforce


3. Proprietary Rights in Land
3.2 Whether a property right has been created

An ‘easement’ is a proprietary right that one landowner


can enjoy over land of another nearby landowner (e.g.
a right of way).

Any valid easement must be


connected with the ‘normal’
enjoyment of land:
Re Ellenborough Park (1956).
3. Proprietary Rights in Land
3.2 Whether a property right has been created

Can a recreational right be an easement? At one time,


it was argued that it could never be.

In Re Ellenborough Park (1956), it was held that a right


to enjoy a garden was connected to the ‘normal
enjoyment’ of land.

… but it was said that a ‘mere right of recreation’ would


not be.
3. Proprietary Rights in Land
3.2 Whether a property right has been created

In Regency Villas v Diamond Resorts (2017), this caveat


was not followed by the Court of Appeal.

A right to use recreational facilities could be an


easement.
3. Proprietary Rights in Land
3.2 Whether a property right has been created

A leasehold estate is a type of proprietary right. It


involves hired control of the land for a ‘term certain’;
that is, a period that is certain from the outset.

Many properties are hired out in this way.


3. Proprietary Rights in Land
3.2 Whether a property right has been created

Should a residential tenancy come with an implied


warranty of habitability?

The courts have held not. They have also resisted any
arguments designed to get around this rule.
3. Proprietary Rights in Land
3.2 Whether a property right has been created

As we have just seen, a leasehold estate involves hired


control of the land for a ‘term certain’; that is, a period
that is certain from the outset.

Some have argued that the ‘term certain’ requirement


is a trap for the unwary, and should be removed.
3. Proprietary Rights in Land
3.2 Whether a property right has been created

This argument was put to the HL in


Prudential Assurance v LRB (1992),
and again to the SC in Mexfield v
Berrisford (2015).

Despite expressing dissatisfaction with the ‘term


certain’ requirement, on both occasions the court
decided to retain it.
3. Proprietary Rights in Land
3.2 Whether a property right has been created

When a cohabiting couple (A and B) live in a home, and


only A has their name on the title deeds, the starting
point is that A is the sole owner.

There are, however, rules by which


B can show that they have a ‘share’
in the home…
3. Proprietary Rights in Land
3.2 Whether a property right has been created

The rules in the 1960s and earlier


gave B a much better chance if
they had made payments
towards the house.

During the 1970s, however, Lord Denning M.R. pushed


for a rule, by which B would get a share ‘whenever
justice and good conscience requires it’ (Hussey v
Palmer (1972)).
3. Proprietary Rights in Land
3.2 Whether a property right has been created

The CA rejected this idea in Burns v Burns (1983).

But ever since then, there has been pressure on the


courts to relax the rules (e.g. Rosset (1991); Stack
(2007); Kernott (2012))
4. Freehold Estates in Land
Five questions for sections 4.1–4.3

1) What is a legal fee simple?

2) Where (in theory) do such estates originate?

3) Why must there be one in any (non-demesne) plot


of land?

4) How does one prove ownership of such an estate?

5) How does one transfer such an estate?


4. Freehold Estates in Land
4.1.1 Origins of the concept

English land law does not recognise that any person


can be the ‘owner’ of land in the
sense that Civil Law systems do.
This is because it is underpinned by
the theory that the Crown ‘owns’
all land.
4. Freehold Estates in Land
4.1.1 Origins of the concept

‘The land itself is one thing and the estate in the


land is another thing, for an estate in the land is a
time in the land or land for a time.’
Walsingham's Case (1573)
4. Freehold Estates in Land
4.1.2 Types of freehold estate

Freehold estates are ones of indeterminate duration.


The event that will bring them to an end is known but
not predictable, in the sense that one cannot say with
certainty at the outset of their existence when that
event will occur.
4. Freehold Estates in Land
4.1.2 Types of freehold estate

A fee simple is the amplest estate that one can have in


land. A fee simple estate lasts for so long as the present
owner of it has heirs.
4. Freehold Estates in Land
4.1.2 Types of freehold estate

A fee tail estate is one that


passes down to the lineal
descendants of the ‘grantee’
(the person first granted the
right), most usually through
succession by eldest male
children.
4. Freehold Estates in Land
4.1.2 Types of freehold estate

A life estate exists for the lifetime of the original


grantee.
4. Freehold Estates in Land
4.1.2 Types of freehold estate

Freehold estates are further classified according to


whether they are (i) absolute, conditional or
determinable; and (ii) in possession, in reversion or in
remainder. We are only really interested in estates that
are ‘absolute’ and ‘in possession’.
4. Freehold Estates in Land
4.1.2 Types of freehold estate

Example

Imagine that B has


a life estate in a beach,
and that C gets the land afterwards.

C has a fee simple in remainder/reversion in the beach.

When B’s life estate ends, C’s fee simple becomes one
‘in possession’.
4. Freehold Estates in Land
4.1.2 Types of freehold estate

i.e. during B’s lifetime

‘B’ ‘C’
Life estate Fee simple absolute in remainder

And after B’s death:


 
‘C’
Fee simple absolute in possession
4. Freehold Estates in Land
4.2 The source of legal freeholds

We have seen that, after the Conquest in 1066, the


Crown became the ‘owner’ of all land. It could then
grant estates in it. These grants commonly came to take
the form of a fee simple absolute in possession.
4. Freehold Estates in Land
4.2 The source of legal freeholds

When the Crown had granted a fee simple estate in


land, its holder could also create lesser estates out of it.
One way to think of this is to imagine the fee simple
being split into smaller fragments of time.
4. Freehold Estates in Land
4.2 The source of legal freeholds

A fee simple holder could divide their estate up into a


life estate followed by a fee simple in remainder:

‘A’
Fee simple absolute in possession
Is divided into:
 
‘B’ ‘C’
Life estate Fee simple absolute in remainder
4. Freehold Estates in Land
4.2 The source of legal freeholds

Legal freehold estates, whether created by the Crown


or an estate holder, could also in principle be sold and
gifted from person to person.
4. Freehold Estates in Land
4.2 The source of legal freeholds

If all of the legal estates in a given plot of land came to


an end, or if no such estates had ever been conferred
over it by the Crown, that land could be enjoyed by the
Crown. (Such land has come to be known as ‘demesne’
land.)
4. Freehold Estates in Land
4.2 The source of legal freeholds

The theory through into the 1800s, therefore, was that


the legal fee simple absolute in possession in any plot
of land […] had been transferred from person to
person, and could trace its origin back to a Crown grant.
4. Freehold Estates in Land
4.2 The LPA 1925

The Law of Property Act 1925


(which came into force on 1
January 1926) made some
crucial changes to this
system.
4. Freehold Estates in Land
4.3 ‘Registered’ and ‘unregistered’ land

The legal fee simple estate in any given plot of land can
also be described as ‘registered’ or ‘unregistered’.
4. Freehold Estates in Land
4.3 ‘Registered’ and ‘unregistered’ land

Registered conveyancing is seen to be less complicated,


less time-consuming and therefore cheaper than
unregistered conveyancing.
4. Freehold Estates in Land
Five questions for section 4.4

1) What is ‘absolute ownership’?

2) What happens when there is a trust?

3) In what situations do trusts arise?

4) Why would one want to be a trustee?

5) What should a prospective buyer do about the risk


that the land they are buying is held on trust?
4. Freehold Estates in Land
4.4.1 Introduction to trusts

In Section 4.3, we noted the idea of a ‘legal’ freehold


estate. By this, we refer to a freehold estate which in
theory originated in a Crown grant. Today this can only
be a fee simple absolute in possession.
4. Freehold Estates in Land
4.4.1 Introduction to trusts

The holder of a legal fee simple absolute in possession


may be called the ‘legal owner’. The starting point is
that the owner of this estate is entitled to use the
powers that come with it for their own benefit.
4. Freehold Estates in Land
4.4.1 Introduction to trusts

However, this default position is overridden if a ‘trust’


comes into existence. When occurs, the legal owner(s)
are called ‘trustees’.

They must then use their rights as legal owners for the
benefit of certain other person(s) (called the
‘beneficiary’/’beneficiaries), of whom they may be
one.
4. Freehold Estates in Land
4.4.1 Introduction to trusts

This interest held by the beneficiaries is a proprietary


right. It is variously called the ‘equitable estate’, the
‘equitable interest’ or the ‘beneficial interest’.
4. Freehold Estates in Land
4.4.1 Introduction to trusts

The precise type of equitable estate taken by the


beneficiary(ies) will turn on the circumstances in which
the trust arose.

Equity ‘Y’ (fsp)

Law ‘X’ (fsp)


4. Freehold Estates in Land
4.4.1 Introduction to trusts

It is important to note also that there is no prohibition


on a person being both a trustee (a legal estate
holder) and a beneficiary. Such trusts are in fact very
common.
4. Freehold Estates in Land
4.4.2 When trusts arise

When a legal fee simple is not held on trust, the


holder of it is called the ‘absolute owner’. There are
however various ways by which an unencumbered
legal fee simple could become subject to a trust.

The situations in which this can happen are, in


practice, spoken of as the ways in which a trust can be
‘created’, or can ‘arise’.
4. Freehold Estates in Land
4.4.2 When trusts arise

• when the legal owner(s) validly declare(s) an


‘express trust’;

• when an absolute owner transfers their legal fee


simple to another person(s), and validly declares
there to be an express trust at the same time; and

• by operation of law (such trusts are called


‘constructive’ and ‘resulting’ trusts).
4. Freehold Estates in Land
4.4.3 Why be a trustee?

Sometimes, trustees are not trustees by choice. This


can be the case with trusts arising by operation of
law. But often there are reasons for wanting to be a
trustee.
4. Freehold Estates in Land
4.4.4 Purchasers and land held on trust

The precise details of when equitable estates bind


purchasers of the legal fee simple are considered in
detail topic 7.

One point is, however, worth stressing even at this


stage…
4. Freehold Estates in Land
4.4.5 Origins of the trust

The concept of a ‘trust’ has its origins in the 13th and


14th centuries.
4. Freehold Estates in Land
4.4.5 Origins of trusts

The rather strange situation,


by which the common law
courts recognised only legal
estates, and the Court of
Chancery enforced equitable
ones, was ended by the
Supreme Court of Judicature
Act 1873.
5. Leasehold Estates
5.1 Introduction

A ‘leasehold estate’ (sometimes called a ‘lease’ or a


‘term of years absolute’) differs from a freehold estate
in that it is for a determinate duration.
5. Leasehold Estates
5.1 Introduction

The Crown can grant a leasehold estate in demesne


land. Much more importantly, they can be created (i)
by holders of legal and equitable freehold estates; and
(ii) by those with leasehold estates.
5. Leasehold Estates
5.1 Introduction

A person granted a leasehold estate is often called a


‘tenant’, and the person who conferred the estate is
often called the ‘landlord’.
5. Leasehold Estates
5.2 Leases can be legal or equitable

A leasehold estate can be ‘legal’


or ‘equitable’: s 1 LPA 1925.

It will be legal if it is (i) created


by a legal estate holder; and (ii)
it meets the formality
requirements to be legal (see
topic 4).
5. Leasehold Estates
5.2 Leases can be legal or equitable

The idea of ‘equitable leases’


had its origins in the Court of
Chancery. This court (unlike the
common law courts) recognised
and enforced equitable leases
that arose in the two situations
just described.
5. Leasehold Estates
5.2 Leases can be legal or equitable

There remain some differences between legal and


equitable leasehold estates. Most importantly, the
rules on when legal leases bind third parties are
different to the rules for when equitable leases bind
third parties.
5. Leasehold Estates
5.3 Legal leases can be held on trust

A legal leasehold estate can be held on trust, just like a


legal freehold estate. (This likewise owed to the
position taken by the Court of Chancery.)
5. Leasehold Estates
5.3 Legal leases can be held on trust

In Section 4.3, above, we saw how a legal fee simple


can be ‘unregistered’ or ‘registered’. The same is also
true with legal leasehold estates.
6. Other Proprietary Rights
6.1 The types of right

In addition to estates in land, there are also various


other types of proprietary right.

These rights can in principle only be created by estate


holders (whether freehold or leasehold, and whether
or legal or equitable).
6. Other Proprietary Rights
6.1 The types of right

At a very basic level these rights can be classified as


follows:

a. rights to derive a limited advantage from or over


another’s land;
b. rights concerning the sale of estates in land; and
c. security rights over land.
6. Other Proprietary Rights
6.2 Legal and equitable rights

It is important to distinguish between


‘legal’ and ‘equitable’ rights when
considering these other
proprietary rights.

Those rights that can be ‘legal’ or equitable are listed


in s 1(1)-(2) of the Law of Property Act 1925. Those
rights that are not listed there can only be equitable: s
1(3).
6. Other Proprietary Rights
6.2 Legal and equitable rights

Whether a right is legal or equitable


usually makes no difference at all
as between the parties who
created the right.

There are however still important differences as


between legal and equitable property rights. These
differences relate to: (a) how the rights are created;
and (b) which third parties they bind.
6. Other Proprietary Rights
6.3.2 Rationale for legal and equitable rights

There are reasons for having both legal and equitable


rights.
6. Other Proprietary Rights
6.3 Transferring legal and equitable rights

Transfers of these proprietary rights are permitted.


One must however comply with certain formality
requirements.
7. Conclusion
7.1 A bird’s-eye view of topic one

Imagine any plot of land in England and Wales…


7. Conclusion
7.2 Policy issues in land law

We will often encounter cases that raise fundamental


questions about why the courts are deciding cases in
the way that they are, and whether these reasons stand
up to scrutiny.
7. Conclusion
7.2 Policy issues in land law

Many factors may influence judicial decision-making in


land law, whether or not they are always openly
acknowledged to do so.
7. Conclusion
7.2 Policy issues in land law

The importance of ensuring that


land (as a vital and finite
commodity) is used in an
effective way.
7. Conclusion
7.2 Policy issues in land law

The autonomy of an estate owner to decide when to


(and when not to) transfer away, or grant interests
affecting, their estate.
7. Conclusion
7.2 Policy issues in land law

A desire to protect persons who, for whatever reason,


are perceived to be vulnerable.
7. Conclusion
7.2 Policy issues in land law

The importance of not undermining the aims of


formality requirements for the creation and transfer
of interests in land.
7. Conclusion
7.2 Policy issues in land law

The desire to ensure that such formality requirements


do not either unduly prejudice persons or allow
owners to get away with unacceptable conduct.
7. Conclusion
7.2 Policy issues in land law

The importance of
ensuring that banks are
able to lend money with
confidence in the security
(i.e. a house) offered for it.
7. Conclusion
7.2 Policy issues in land law

The desire for property rights to be sufficiently certain


in terms of their limits and incidents, so that third
parties can be sure of their position without too much
difficulty.

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