Introduction to land law - Rights in land

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Sara has recently inherited farmland from her late grandfather, who acquired it decades ago without ever registering the title. She plans to sell the property to her neighbor, Marcus, who insists that the title be updated before purchase. The farmland is still subject to an old restrictive covenant that was never formally noted on any register. Marcus worries that this unrecorded covenant could limit his intended use of the land. Seeking legal advice, Sara learns that certain transactions trigger first registration under the Land Registration Act 2002 and wonders what formalities she must follow.


Which of the following is the single best statement regarding how first registration will affect the restrictive covenant?

Introduction

Land law defines the legal rights and interests associated with land and property, serving as a significant component of English jurisprudence. It covers the principles of estates, interests in land, land registration, and specific rights such as airspace and mineral rights. Understanding these concepts involves examining the nature of ownership, the distinctions between legal and equitable interests, and the mechanisms by which rights are recorded and enforced.

Estates in Land

An estate in land determines the duration and conditions under which someone holds interest in a property. It serves as the basis of property rights in English law and shapes the legal relationship between individuals and the land.

Freehold Estates

A freehold estate grants lasting ownership of land without a predetermined end date. The owner possesses the land indefinitely, with the freedom to use or dispose of it as they wish, subject to statutory and common law limitations.

Fee Simple Absolute in Possession

The fee simple absolute in possession is the most complete form of ownership. It confers broad rights, including:

  • Unlimited Duration: Ownership continues indefinitely.
  • Rights of Use: The owner may use the land as desired.
  • Transferability: The land can be sold, gifted, or bequeathed.

For example, when an individual purchases a house along with the land it occupies, they typically acquire a fee simple estate. However, their rights are still subject to laws such as planning regulations or environmental protections.

Leasehold Estates

Leasehold estates provide rights to use and occupy land for a specified period. Unlike freehold estates, leaseholds have a definite duration, after which the rights revert to the freeholder.

Types of Leasehold Estates

  1. Term of Years Absolute: A fixed-term lease that ends on a specific date set at the beginning. For instance, renting an office space for a five-year term.
  2. Periodic Tenancy: A lease that continues for successive periods (e.g., month-to-month) until terminated by notice from either party. This is common in residential leases where tenants pay rent monthly.
  3. Tenancy at Will: An arrangement without a fixed term, lasting as long as both landlord and tenant agree. It can be ended at any time by either party.
  4. Tenancy at Sufferance: Occurs when a tenant remains in occupation without the landlord's consent after the lease has expired.

Leasehold estates are common in urban areas where properties are divided into flats or units, providing flexibility for both landlords and tenants.

Legal vs. Equitable Interests

Distinguishing between legal and equitable interests is essential for determining the enforceability and priority of property rights.

Legal Interests

Legal interests are rights recognized at law and are enforceable against third parties. Under the Law of Property Act 1925, legal interests include:

  • Fee Simple Estates: Freehold ownership.
  • Leasehold Interests: Rights under a lease agreement.
  • Easements: Rights over another's land, such as a right of way.
  • Mortgages: Security interests granted to lenders.
  • Rentcharges: Rights to receive a periodic payment from landowners.

These interests automatically bind subsequent purchasers of the land, regardless of notice.

Equitable Interests

Equitable interests arise in situations where justice and fairness require recognition of certain rights, even if they are not legal interests. They include:

  • Beneficial Interests Under a Trust: Where the trustee holds legal title, but the beneficiary enjoys the benefits of the property.
  • Equitable Easements: Rights that are equitable due to non-compliance with legal formalities.
  • Estate Contracts: Agreements to transfer property in the future.
  • Restrictive Covenants: Promises restricting the use of land for the benefit of another's land.

Equitable interests are generally enforceable against all persons except a bona fide purchaser of a legal estate for value without notice.

For instance, if Alice contracts to buy land from Bob and pays a deposit, she acquires an equitable interest in the land until the legal title is conveyed.

Land Registration and Its Effects

The Land Registration Act 2002 revolutionized the recording of land ownership in England and Wales, improving transparency and security in property transactions.

Key Features of the Land Registration System

  1. Transparency: The register provides a definitive record of ownership and interests affecting the land.
  2. Security: Registered titles are guaranteed by the state, reducing the risk of disputes and fraud.
  3. Simplification: Conveyancing procedures are streamlined, as the necessary information is readily available.
  4. Electronic Conveyancing: The system supports digital transactions, ensuring efficient property dealings.

Registered vs. Unregistered Land

Registered Land

  • Ownership and most interests are recorded at the Land Registry.
  • Interests need to be registered to bind purchasers.
  • Certain overriding interests bind purchasers even if not registered, such as rights of persons in actual occupation.

For example, when purchasing a registered property, the buyer can consult the register to confirm the seller's ownership and identify any registered interests or charges.

Unregistered Land

  • Ownership is proved through physical title deeds.
  • Interests may be protected by registering land charges against the owner's name.
  • Priority of interests is determined by principles of notice and statutory rules.

A purchaser of unregistered land must investigate the title deeds to confirm ownership and uncover any existing interests.

First Registration

Certain transactions trigger the requirement for first registration of unregistered land, including sales, gifts, and mortgages. The owner must submit the necessary documentation to the Land Registry to create a registered title.

For instance, if someone inherits an unregistered rural property and decides to sell it, they must first register the land before the sale can be completed.

Specific Rights in Land

Airspace Rights

Ownership of land extends to the airspace above it, but only to such height as is necessary for the ordinary use and enjoyment of the land and the structures upon it.

Under the Civil Aviation Act 1982, reasonable overflights by aircraft do not constitute trespass. However, intrusions into lower airspace may be actionable. For example, if a neighbor's construction crane swings over your property without permission, it could be considered trespass, as held in Anchor Brewhouse Developments Ltd v Berkley House (Docklands Developments) Ltd [1987].

Water Rights

Landowners' rights over water depend on its flow:

  • Defined Channels: If a river or stream flows through the land, the owner has riparian rights, including reasonable use of the water and a duty not to obstruct the flow to downstream owners.
  • Percolating Water: Water percolating under the land in undefined channels can be abstracted by the landowner, even if it affects neighbors, as established in Bradford Corporation v Pickles [1895].

For example, a landowner may drill a borehole to extract groundwater beneath their property for agricultural use.

Mineral Rights

Generally, a landowner owns the minerals beneath the surface of their land, but there are statutory exceptions:

  • Gold and Silver: These are vested in the Crown.
  • Petroleum and Natural Gas: Under the Petroleum Act 1998, these resources belong to the Crown.

In Star Energy Weald Basin Ltd v Bocardo SA [2010], it was held that drilling under another's land without consent constituted trespass, even though the petroleum extracted belonged to the Crown.

Adverse Possession

Adverse possession allows a person to acquire legal ownership of land by possessing it without the owner's consent for a specified period.

Requirements for Adverse Possession

  1. Factual Possession: The claimant must have physical control over the land, such as enclosing or cultivating it.
  2. Intention to Possess: There must be an intention to possess the land to the exclusion of others, including the true owner.
  3. Without Consent: Possession must be without the owner's permission.
  4. Continuous Period:
    • Registered Land: At least 10 years of adverse possession, after which an application can be made to the Land Registry. The registered proprietor is notified and can oppose the claim.
    • Unregistered Land: At least 12 years of adverse possession, after which the original owner's title is extinguished under the Limitation Act 1980.

For example, if someone occupies an unused strip of land adjacent to their property, fencing it off and using it as their garden for over a decade without the owner's consent, they may acquire title through adverse possession.

Conclusion

The complex interactions between various principles of land law, particularly the distinction between legal and equitable interests within the framework of land registration, are central in determining the enforceability of rights. For instance, equitable interests arising under trusts must be properly protected by entry of a restriction on the register to bind future purchasers, as per the Land Registration Act 2002. Failure to do so may leave the beneficiary's interest vulnerable if the property is sold to a purchaser without notice.

Additionally, the doctrine of adverse possession illustrates how possession, intention, and statutory requirements converge to potentially alter ownership rights. The formal procedures introduced by the Land Registration Act 2002 for registered land ensure that registered proprietors are alerted to adverse possession claims, balancing the interests of owners and possessors.

Specific rights such as airspace and mineral rights demonstrate how common law principles are modified by statutory provisions. While landowners typically own the space above and the ground beneath their land, statutes like the Civil Aviation Act 1982 and the Petroleum Act 1998 impose significant qualifications on these rights.

Understanding these concepts requires careful examination of statutes, case law, and their practical implications. The interplay between different legal principles—such as how unregistered interests can impact registered titles or how equitable rights can be safeguarded—is essential for understanding the complexities of land law. Professionals must consider how these elements interact in real-world scenarios to provide accurate legal advice and ensure compliance with the complex legal framework.

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