The Learning & Resource Section

Property Rights against Land Owned

Property Rights against Land Owned by Other People:

  • Mortgages:

A borrower (mortgagor) grants the lender (mortgagee) an interest in the property as a security for a loan

  • Restrictive Covenants:

A restrictive covenant is another type of right in land

Covenant: a promise between landowners regulating the use of land

Restrictive Covenant: a promise by one landowner in favour of neighboring landowners that he will not do certain things upon his land.

Example: Fences on property must not be more than one foot high

  • Easements:

A right of one landowner to make use of another nearby piece of land for the benefit of his own land

  • Profits a Prèndre:

A right to go on to somebody else’s land and to remove from that land something which exists there naturally

Example: a right to fish in someone’s lake, a right to extract minerals

  • Rentcharges:

The right to receive payment of a regular (usually annual) sum of money—that sum of money is charged upon a fee simple estate in a piece of land

  • Rights of Occupation—Home Rights:

Where one spouse or civil partner has sole title to the home, the other spouse or civil partner has a statutory right to occupy the home

  • Interests under Resulting or Constructive Trusts:

Resulting Trusts: this arises where a party, who is not the legal owner, contributes to the purchase price of the property at the time the property is acquired

Constructive Trust: interest arises in favour of the party, who is not the legal owner, who either substantially contributes to the repayment of the mortgage or pays for or personally undertakes substantial improvements to the property

  • Proprietary Estoppel:

Arises where a landowner encourages a third party to expend money and/or effort on the landowner’s land and the third party reasonably assumes that he will have some degree of permanence on the land

  • Estate Contracts:

o A right which a purchaser of land acquires when he has agreed to buy, but ownership has not yet been transferred to him

  • Conveyance:

The document, in the form of a deed which transfers a legal estate in land from one person to another

Does not include a will or contract

Deed of gift can also act as conveyance

Definition of this can be found in Law of Property Act 1925, s.205(1)(ii)

The Trust:

· The concept of the trust is fundamental to English property law

  • A trust normally involves three parties:

The settlor who creates the trust

The trustees who manage the trust property but do not keep any income derived from the property

The beneficiaries who are entitled to the income from the trust property

  • When a trust is created:

The trustees are recognized by the common law as the owners of property—they are the legal owners of the property

The beneficiaries are recognized by equity as the owners of the property—they are equitable owners

  • Trust Property:

Most trusts by a settlor may benefit family members, friends or employees

Some can be charitable trusts—i.e. trust has charitable purposes; no human beneficiaries

Trusts may be created inter vivos, meaning while settlor is still alive

Or trusts can be made through a will

  • Trusts of Land:

Introduced by Trusts of Land and Appointment of Trustees Act 1996

Three basic forms:

Strict Settlement:

· This not as common today, but was usually applied to land

· Would be to keep the land in the family from generation to generation

Trust for Sale:

· Form of trust under which legal title was vested in trustees who were under a duty to sell the land and invest proceeds for the benefit of the beneficiaries

Bare Trust:

  • Can be applied to any form of property, but rare in practice
  • Bare trust is any trust where legal ownership is vested in trustees but
  • There is only one beneficiary
  • He/she is of full age
  • He/she entitled to all benefits from trust property
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