Property and Trusts 1 - University of Wolverhampton

Distance Learning Module Planner
Property and Trusts 1
Course Code: MP–LD2019
Module Leader: Tracey Harrison
e-mail: tracey.harrison@wlv.ac.uk
© University of Wolverhampton 2007
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Contents
How to Use Your Module Planner
5
Topics Covered by Module
7
Skills to be Developed and Examined
8
Examinations
9
A Brief Guide to Study Skills
10
Introduction to Study Units
13
Reading List
14
Study Unit 1: Tenures and Estates; Equity and Trusts Relating to Land
16
Study Unit 2: The Development of Equity and the Invention of the Trust
19
Study Unit 3: Unregistered Title – The 1925 Property Legislation
21
Study Unit 4: Registration of Title
25
Study Unit 5: Leases and Tenancies
28
Study Unit 6: Licences
34
Study Unit 7: Freehold Covenants
37
Learning Project
41
Practice Question and Suggested Answer
45
Revision
49
Taking the Examination
53
Module Questionnaire
55
How to Use Your Module Planner
The Module Planner is vital to your studies. It divides the work in each area into Units, and shows
you the minimum number of hours you should spend on each Unit, at the top right hand corner of
the first page of each Study Unit, in order to understand the law involved. You should plan on devoting a minimum of 150 hours to each module you study.
The section headed ‘Essential Reading’ contained in the Reading List and each Study Unit refers
you to the materials with which you are provided. The materials listed in the Essential Reading are
sufficient to enable you to complete the course very effectively.
The section headed ‘General Reading’ lists other books which, if you wish, you can read to give
you other approaches to the law. These books are not provided but you should be able to purchase them from Hammicks Legal Bookshop, whose address, telephone number and website details are provided in the General Reading section of the Reading List. They are not essential for
you to be successful on the course, but they may help to give you a different viewpoint of the law
involved in this module.
The Module Planner guides you through the course. Work through it logically, and in order, and
make sure you understand one Unit before you move on to the next. At the end of each Unit you
will find a set of Self-Study Questions. Test yourself on these and make sure you understand them
before you move onto the next Unit.
At the end of the Study Units you will find the Learning Project. A compulsory question will be set
in the examination in Section A of your paper on all or parts of the material covered by the Learning Project, and this will count for 50 per cent of your overall grade, so it is essential that you ensure you study and understand all aspects covered by it. The Study Units which relate to the
Learning Project have been indicated to guide you through this material while you study.
The Module Planner is your guide to the topic of English law that it covers. Have it with you as you
study and you will make the most of this opportunity to obtain the best law degree of which you
are capable.
With this Module Planner you should have the following materials:
McKenzie and Phillips, Texts, Cases and Materials on Land Law,
Statutes on Property Law 2007-2008
Maudsley and Burn’s Land Law Cases and Materials (£33.99)
If you do not receive this set of materials, please contact:
Distance Learning Department
Holborn College
Woolwich Road
Charlton
London
SE7 8LN
Tel: +44 (0) 208 317 6000
Fax: +44 (0) 208 317 6003
E-mail: dl@holborncollege.ac.uk
Topics Covered by Module
This module covers the following topics within English law.
Tenures and Estates; Equity and Trusts Relating to Land
The Development of Equity and the Invention of the Trust
Unregistered Title – The 1925 Property Legislation
Registration of Title
Leases and Tenancies
Licences
Freehold Covenants
Skills to be Developed and Examined
To be successful in the end of module examination you need to show that you understand and
can apply the area(s) of law you have been studying. You must be able to demonstrate this to the
examiners by writing answers which communicate the points you wish to make accurately and in
good English. This is a key part of demonstrating that you have understood the points of law, the
cases and the Acts of Parliament that you have studied.
Before you start to write your answer, identify the issues that are relevant to the question. These
must be clearly stated in your short introductory paragraph(s). When referring to case law and
statute law, you then need to explain the relevant legal principles in the context of the issues you
identified in your introductory paragraph(s). Finally, you need to write a concluding paragraph
which brings your points together. Do not write everything you know about an area, or write
answers that take the form of a series of notes. Your answer should be structured in the way described above and be written in good English.
For further guidance on how you will be graded please consult your Award Guide which contains
an explanation of the criteria used to grade your work.
It is important that you practice answering questions and in particular take the opportunity to submit a sample question for marking and feedback. This question is contained in the Practice Question section of the Module Planner.
Examinations
This module is assessed by one, two hour, unseen written examination. Examinations take place
in September, January, and May of each year. The examination is in two parts: Part A is a compulsory question and counts for 50 per cent of the total grade, Part B has four questions of which
you will be required to answer two only. Each of the questions in Part B is worth 25 per cent of the
total grade.
The compulsory question in Part A is based on those topics which make up the Learning Project.
You will find details of the Learning Project and the topic area covered by it at the end of the Study
Units in this Module Planner. You should read this section carefully to identify those areas of the
module covered by the Learning Project.
You will, therefore, know in advance of the examination that there will be a substantial question on
the topics covered by the Learning Project. When you write the examination you should make sure
that you devote 50 per cent of the time to the question in Part A. Your answer to this question
should normally be about twice as long as your answer to the two questions in Part B.
The purpose of the Learning Project is to allow you to study a significant part of the syllabus in
depth in the sure knowledge that you will be examined on it. In this way, hard-working students
who have studied their materials thoroughly will be able to write an in-depth answer and have full
credit for the work they have done reflected in the grade awarded.
There is no assessed coursework for this module. The total grade for the module is based upon
the unseen written examination. Although you should make sure that you cover the whole syllabus, it is particularly important that you study those syllabus topics which are covered by the
Learning Project thoroughly so that you can write a complete answer to the compulsory question
in Part A and take advantage of the fact that this question is worth 50 per cent of the grade.
The examination is a two-hour examination with an additional 15 minutes reading time. It is an unseen examination. As stated above, you will know what topics will be covered by the compulsory
question in Part A of the
examination, provided you have studied the details of the Learning Project at page 44 of this Planner.
A Brief Guide to Study Skills
As a distance learning student you will undoubtedly have other demands on your time. It is, therefore, important that you use your time effectively. The following tips are intended to help you do
so.
Time Management
Be realistic.
Work out what time you have available for study; take out time for sleeping, eating, recreation, etc.
Try to plan ahead – do not leave everything to the last minute.
Prioritise – do not do the easiest task first, but the one that really needs to be done first.
Set objectives which are reasonable, and make sure that they are somewhere you see
them.
Break large tasks into manageable sub-tasks and set target dates against each sub-task.
Keep a wall planner chart.
Try doing the most difficult things when you feel at your best.
Remember the unexpected always happens, so be flexible – don’t get angry when plans
have to change.
Effective Reading
Reading
Read with purpose (what questions have to be answered?).
Read selectively – scan and skim – only read in detail what you need to.
Mentally recite what you have just read.
Make notes at appropriate points – bullet points, do not rewrite the whole book.
Review
Did I answer the questions I wanted to?
Do I understand and remember what I read?
Studying
Where?
Choose somewhere that is conducive to study. You need: a large table or desk; a suitable
chair; a bookcase; adequate, suitable lighting; adequate ventilation; reasonable temperature – too cold,
you can’t concentrate – too warm, you will go to sleep.
Banish distractions – magazines, radio, telephone, TV.
Decide where you study best, and try to keep to it.
When?
When you are alert.
Not when you are too tired.
When it is the best time of day for you – some people work better at night, others early in
the morning.
How?
Try studying for 50 minutes, break for 10 minutes, etc.
Have all you need available – pens, pencils, dictionary, PC, etc.
Avoid too much physical relaxation or you will go to sleep!
Actively study – make notes, etc. It is difficult to just read for too
long; it makes you sleepy and you lose concentration.
Remember to have breaks and do have time for relaxation.
Set yourself targets, and give yourself rewards!
Practice Questions
At the end of each unit you will find Sample Questions, and at the end of the Planner is a Practice
Question and Suggested Answer. strongly advised to submit at least one answer to either a Sample Question or the Practice Question for marking. Unless you do so you will not gain any insight
into your strengths and weaknesses.
Introduction to Study Units
The Study Units deal with the individual topics covered by the module. The module is broken
down into Study Units to enable you to look at each area of law in digestible parts. You must work
through each Study Unit in order, ensuring that you understand the material covered by each Unit
before progressing on to the next one.
Each Study Unit is broken down into four major sections.
Reading List
This indicates what reading you must do (Essential Reading) in order to cover all of the material
set in the Unit. All material listed in the Essential Reading is provided as part of your study materials. You can, if you wish, further your knowledge and understanding by completing the General
Reading in each Unit. These materials are not essential for you to complete the course, but you
may find them useful in your study. Such materials are not supplied, and you are responsible for
obtaining copies of the titles listed in the General Reading. Details are given in the Reading List of
suppliers.
Case Law and Statutes
This section directs you to those cases and statutes that you will need to read and understand in
order to complete the Unit.
Self-Study Questions
These are questions designed to set the parameters of the Study Unit and to test your application
of the basic principles.
Sample Questions
These may be essay or problem questions, often taken from past examination papers. You should
attempt your own answers to all of these questions.
Reading List
These are the titles that you will use throughout the course. They are referred to in the reading
section of each Study Unit, to guide you in your learning.
Essential Reading
All materials listed here must be read in order for you to understand the module.
These books are supplied as part of your study materials.
McKenzie and Phillips, Texts, Cases and Materials on Land Law,
Statutes on Property Law 2007-2008
Maudsley and Burn’s Land Law Cases and Materials
General Reading
These materials are not supplied, and are not essential to pass the module. You may, however,
wish to refer to them to deepen your understanding of the topics covered by the course. You are
responsible for obtaining your own copies of these titles. If you choose to do so, you should be
able to purchase them by contacting Hammicks Legal Bookshops at 192 Fleet Street, London
EC4A 2NJ; tel: +44 (0)20-7405-5711 or you can order online at www.hammickslegal.co.uk.
Elements of Land Law
Gray (4th edition 2005) Oxford University Press
Modern Equity
Hanbury and Martin (16th edition 2001) Sweet & Maxwell
Megarry’s Manual of the Law of Real Property
Oakley (8th edition 2002) Sweet & Maxwell
Maudsley and Burn’s Land Law: Cases and Materials ed Burn (8th edition 2004) Butterworths In
addition, in each Study Unit you will find a list of cases which should be consulted. If you have access to the Internet you may wish to take advantage of the legal materials available via this
source. See your Award Guide for details.
For those students who have never studied the law, certain terminology used may be difficult to
understand at first. As you progress through the course, you will learn a range of new words and
phrases that are frequently used in the study of law. If you encounter any difficulties with the terminology used, however, you will find it useful to refer to a legal dictionary, which will explain the
meaning of legal words and phrases in plain English. Mozley and Whitley’s Law Dictionary (12th
edition 2001) by Butterworths is very helpful, and can be purchased through Hammicks Legal
Bookshops.
Study Unit 1 Suggested minimum study hours: 5
Topic
Tenures and Estates; Equity and Trusts Relating to Land
Introduction
A knowledge of tenures and estates is essential to an understanding of land law; this Unit examines these basic concepts and provides a background to the 1925 reforms.
Objectives
a To consider the definition of land and be able to identify when chattels become part of the land.
b To consider the first of two fundamental doctrines of land law. When considering tenures, the
question to be answered is: upon what terms is the land held? The quality of the holding.
c To consider the second of the two fundamental doctrines of land law and to answer the question:
for how long is the land held? The quantity of the holding. This Study Unit commences the buildup to the understanding of the changes introduced by the 1925 property legislation which is considered in full in Study Unit 3.
d Continuing the theme of a broad introduction to land law by showing the relationship with equity
and trusts in the formulation of many of the basic land law tenets.
The Study Unit concludes by considering the equitable doctrine of notice in anticipation of later
Study Units 3 and 4 relating to registration of incumbrances and registration of title respectively.
Essential Reading
These titles have been supplied as part of your study materials.
McKenzie and Phillips, Texts, Cases and Materials on Land Law,
Statutes on Property Law 2007-2008
Maudsley and Burn’s Land Law Cases and Materials
Relevant Chapters on Tenures and Estates and Equity and Trusts relating to land
General Reading
These titles have not been supplied and are not essential reading, but you may wish to refer to
them to further your understanding.
Elements of Land Law, Gray – Relevant Chapter(s)
Megarry’s Manual of the Law of Real Property, Oakley – Relevant
Chapter(s)
Maudsley and Burn’s Land Law: Cases and Materials, ed Burn –
Relevant Chapter(s)
Case law and statutes
ESTATES
Berkley v Poulett [1977] 1 EGLR 86
Bernstein v Skyviews [1978] QB 479
Chelsea Yacht & Boat Club Ltd v Pope (2000) The Times 7 June Clayton’s Deed Poll, Re [1980]
Ch 99; [1979] 2 All ER 1133 D’Eyncourt v Gregory (1886) LR 3 Eq 382 Elitestone Ltd v Morris and
Another [1997] 2 All ER 513 (HL)
Leigh v Taylor [1902] AC 157
Parker v British Airways Board [1982] 1 All ER 834
Rowhook Mission Hall, Horsham, Re [1984] 3 All ER 179; [1985] Ch 62
Fines and Recoveries Act 1833
Law of Property Act 1925: s60
Law of Property Act 1925: s130
Reverter of Sites Act 1987
EQUITY AND TRUSTS RELATING TO LAND
Hunt v Luck [1902] 1 Ch 428 (CA)
Kingsnorth Finance Co Ltd v Tizard [1986] 2 All ER 54; [1986] 1 WLR 783 Midland Bank Trust Co
Ltd v Green [1981] AC 513; [1981] 2 WLR 28; [1981] 1 All ER 153 (HL)
Midland Bank Ltd v Farmpride Hatcheries Ltd (1981) 260 EG 493
Woolwich plc v Gomm & Another (1999) The Times 21 September
Law of Property Act 1925: ss198 and 199
Statute of Uses 1535
Self-Study Questions
1 Explain the meaning of the following terms:
a doctrine of tenures;
b doctrine of estates;
c freehold;
d fee simple;
e entail;
f life estate; and
g leasehold.
2 Explain what is meant by and give an example of:
a fee simple absolute;
b conditional fee simple;
c determinable fee simple;
d estate pour autre vie;
e barring an entail; and
f words of limitation.
3 Distinguish between a legal estate and an equitable interest.
Sample Questions
1 How does the fee simple differ from the life estate?
How extensive are the powers of the tenant for life under the life estate, particularly in relation to
‘waste’?
(Wolverhampton LLB by Distance Learning Question.)
2 Why is the doctrine of tenures now of little significance in relation to freehold land?
(Wolverhampton LLB by Distance Learning Question.)
Study Unit 2 Suggested minimum study hours: 5
Topic
The Development of Equity and the Invention of the Trust
Introduction
The duality of legal and equitable ownership is a fundamental of English property law. This Unit
examines the development of equity with particular reference to the trust.
Objectives
a To consider the historical development of equity.
b To consider the invention of the trust mechanism.
Essential Reading
These titles have been supplied as part of your study materials.
McKenzie and Phillips, Texts, Cases and Materials on Land Law,
Statutes on Property Law 2007-2008
Maudsley and Burn’s Land Law Cases and Materials
Read relevant chapters on the development of equity and the intervention of the trust
General Reading
These titles have not been supplied and are not essential reading, but you may wish to refer to
them to further your understanding.
Modern Equity, Hanbury and Martin – Relevant Chapter(s)
Case law and statutes
Walsh v Lonsdale (1882) 21 Ch D 9
Judicature Acts 1873–1875
Supreme Court Act 1981: s49
Self-Study Questions
1 What is equity? How did it develop?
2 Briefly describe the effects of the Judicature Acts 1873 –1875 on common law and equity.
3 What is the relevance of equity as a source of law today?
4 Give examples of some maxims of equity.
5 How and why was the mechanism of the trust introduced by equity into English law?
6 Explain how trusts have been developed by equity to take account of social and commercial
changes.
Sample Questions
1 ‘Equity is a gloss on the common law.’
Discuss.
(Wolverhampton LLB by Distance Learning Question.)
2 ‘The mechanism of the trust is the most significant invention of equity in the field of rights and
remedies.’
Discuss.
(Wolverhampton LLB by Distance Learning Question.)
3 Explain the meaning of the equitable maxim ‘equity looks to substance, not to form’.
(Wolverhampton LLB by Distance Learning Question.)
4 ‘The problems of the fragmentation of rights of title, use and enjoyment which is integral to the
economic reality of property in the modern world have been largely resolved in English law by the
invention of the trust.’
Discuss the validity of this statement.
(Wolverhampton LLB by Distance Learning Question.)
Study Unit 3 Suggested minimum study hours: 15
Topic
Unregistered Title – The 1925 Property Legislation
Introduction
English land law was radically reformed by the 1925 legislation. This Unit examines the changes
effected by the legislation which remains the contemporary basis of English land law.
Objectives
a To consider the effect of the changes introduced into English land law from 1 January 1926.
b To consider the effect of the 1925 property legislation on the doctrine of notice as it relates to
land with unregistered title. This Unit also contains an investigation into those areas of land law
where the equitable rules of notice continue to apply today.
c To consider the different types of registrable interests as set out in s2 of the Land Charges Act
1972.
d To gain a full understanding of this Unit is essential: subsequent Study Units will build on these
topics.
Essential Reading
These titles have been supplied as part of your study materials.
McKenzie and Phillips, Texts, Cases and Materials on Land Law,
Statutes on Property Law 2007-2008
Maudsley and Burn’s Land Law Cases and Materials
Read relevant chapters on unregistered title – The 1925 Property Legislation
General Reading
These titles have not been supplied and are not essential reading, but you may wish to refer to
them to further your understanding. Elements of Land Law, Gray – Relevant Chapter(s)
Megarry’s Manual of the Law of Real Property, Oakley – Relevant Chapter(s)
Maudsley and Burn’s Land Law: Cases and Materials, ed Burn –
Relevant Chapter(s)
Case law and statutes
Barnett v Hassett [1981] 1 WLR 1385; [1982] 1 All ER 80
Hollington Brothers Ltd v Rhodes [1951] 2 All ER 578; [1951] 2 TLR 691
Hunt v Luck [1902] 1 Ch 428 (CA)
Ives (E R) Investments Ltd v High [1967] 2 QB 379; [1967] 2 WLR 789;
[1967] 1 All ER 504 (CA)
Kingsnorth Finance Co Ltd v Tizard [1986] 2 All ER 54; [1986] 1 WLR 783 Lloyds Bank plc v Carrick and Another [1996] 4 All ER 630 (CA) Midland Bank Trust Co Ltd v Green [1981] AC 513;
[1981] 2 WLR 28; [1981] 1 All ER 153 (HL)
Shiloh Spinners Ltd v Harding [1973] AC 691; [1973] 1 All ER 90 (HL)
Administration of Estates Act 1925
Family Law Act 1996
Land Charges Acts 1925 and 1972
Land Registration Acts 1925 and 1986
Law of Property Act 1925: ss1, 2, 198 and 199 especially
Law of Property (Amendment) Act 1926
Law of Property (Joint Tenants) Act 1964
Law of Property (Miscellaneous Provisions) Act 1994
Local Land Charges Act 1975
Matrimonial Homes Act 1983
Perpetuities and Accumulations Act 1964
Rent Charges Act 1977
Reverter of Sites Act 1987
Settled Land Act 1925
Trustee Act 1925
Self-Study Questions
1 These questions relate to both common law and equity.
a Compare legal remedies with equitable remedies.
b What is meant by the expression ‘legal rights bind the world’? Give two examples.
c Explain in outline the bona fide purchaser rule (the doctrine of notice).
d Explain the modifications made by the 1925 legislation to the bona fide purchaser rule in respect
of:
i equitable interests behind a trust (the so-called ‘family’ equitable interests);
ii the other equitable interests which do not exist behind a trust (the so-called commercial
equitable interests such as equitable leases, equitable easements and restrictive covenants).
2 Self-study check list.
a i Compare personal property with real property.
ii Compare rights in personam with rights in rem.
iii What are chattels real?
b i What is an estate in land?
ii Describe the two estates that can exist at law after 1925.
iii Describe some other interests in land which may now only exist behind a trust.
Sample Questions
1 What legal and equitable estates and interests are created by the following transactions? a A,
the legal owner of the fee simple of Blackacre, charges it by way of legal mortgage to B to secure
a loan of £5,000. With B’s concurrence, he grants a right of way over part of Blackacre to his
neighbour C to last for C’s lifetime. b D leases Whiteacre by deed to E for 21 years at a rent of
£250 per annum; the lease provides, inter alia, that D may resume possession if the rent falls into
arrears. c L lets M into possession of ‘The Cottage’ on a weekly tenancy at a rent of £45 per
week.
(Wolverhampton LLB by Distance Learning Question.)
2 In 1996 Alex granted to Brian a 99-year lease of Cosy Nook, a property which is unregistered
land. The lease is an equitable lease of 99 years because the correct formalities for creating a legal lease were not followed.
a Explain what steps Brian should take to protect his equitable lease.
b In 1998 Alex sold the freehold reversion to Peter. If Brian had protected his equitable lease
would Peter be bound by it? (Ignore any question of any periodic tenancy which may arise.) Would
it make any difference to your answer if Peter did not in fact know about the equitable lease at the
time of his purchase?
c If Brian had failed to protect his equitable lease would Peter be bound by it? Would it make any
difference to your answer if Peter knew about the equitable lease prior to his purchase of Cosy
Nook?
d To what extent would your answers be different if Peter had inherited the property from Alex in
2000 rather than purchasing it?
(Wolverhampton LLB by Distance Learning Question.)
3 Kevin and Tracy live together at Greenhedges, a property with unregistered title. The property
was purchased in Kevin’s sole name. Tracy owns an equitable interest in the property because
she made a considerable cash contribution to the purchase price. The property is therefore held
under a trust for sale. Kevin is the sole trustee. The beneficiaries are Kevin and Tracy holding equitable interests.
a Can Tracy register her equitable interest under the LCA 1972?
b If Kevin were to sell Greenhedges to Paramjit would Tracy’s equitable interest be overreached?
(Wolverhampton LLB by Distance Learning Question.)
4 ‘The dominant policy of the 1925 legislation was to facilitate the transfer of land by easing the
burden on purchasers without defeating the interests of others unfairly.’ (Megarry & Thompson)
Analyse the success of the 1925 legislation with reference to the above statement. Has the ethos
behind property legislation changed since 1925?
(Wolverhampton LLB by Distance Learning, May 2001, Question 2.)
Study Unit 4 Suggested minimum study hours: 25
Topic
Registration of Title
Introduction
One of the main changes introduced by the 1925 legislation was the introduction of a comprehensive system of the registration of title. The Land Registration Act 1925 has been replaced by the
Land Registration Act 2002. This Unit examines the way in which the system of land registration
operates.
Objectives
a To consider registration of title.
b To consider the classification of titles to, and interests in, registered land and the ways in which
interests can be protected.
c To consider rectification of the register and indemnity.
d To consider the effect of first registration of title, and the effects of registered dispositions, rectification of the register and indemnity.
Essential Reading
These titles have been supplied as part of your study materials.
McKenzie and Phillips, Texts, Cases and Materials on Land Law,
Statutes on Property Law 2007-2008
Maudsley and Burn’s Land Law Cases and Materials
Read the relevant chapters on registration of title
General Reading
These titles have not been supplied and are not essential reading, but you may wish to refer to
them to further your understanding. Elements of Land Law, Gray – Relevant Chapter(s)
Megarry’s Manual of the Law of Real Property, Oakley – Relevant
Chapter(s)
Maudsley and Burn’s Land Law: Cases and Materials, ed Burn – Relevant Chapter(s)
Case law and statutes
Abbey National Building Society v Cann [1990] 2 WLR 832; [1990] 1 All ER 1085; [1991] 1 AC 56
(HL)
Argyle Building Society v Hammond (1984) 49 P & CR 148 Ashburn Anstalt v Arnold [1988] 2 All
ER 147 Bank of Baroda v Dhillon and Another (1997) The Times 4 November (CA)
Birmingham Midshires Mortgage Services Ltd v Sabherwal (2000) 80 P & CR 256 (CA)
Bridges v Mees [1957] Ch 475; [1957] 2 All ER 577
Celsteel Ltd v Alton House Holdings Ltd [1985] 1 WLR 204
Chowood’s Registered Land, Re [1933] Ch 574
City of London Building Society v Flegg [1987] 2 WLR 1266; [1987] 3 All ER 435; [1988] AC 54
(HL)
Hodgson v Marks [1971] Ch 892; [1971] 2 All ER 684
Lloyds Bank plc v Rosset [1991] 1 AC 107; [1990] 2 WLR 867; [1990] 1 All ER 1111 (HL)
Lyus v Prowsa Developments Ltd [1982] 1 WLR 1044; [1982] 2 All ER 953 Norwich and Peterborough Building Society v Steed [1992] 3 WLR 669;
[1993] 1 All ER 330 (CA)
Paddington Building Society v Mendelsohn (1985) 50 P & CR 244 Peffer v Rigg [1978] 3 All ER
745; [1977] 1 WLR 285 Strand Securities v Caswell [1965] Ch 958; [1965] 1 All ER 820 (CA)
Webb v Pollmount Ltd [1966] Ch 584; [1966] 1 All ER 48 Williams & Glyn’s Bank Ltd v Boland
[1981] AC 487; [1980] 2 All ER 408; [1980] 3 WLR 138 (HL)
Woolwich Building Society v Dickman [1996] 3 All ER 204 (CA)
Family Law Act 1996
Land Registration Acts 1925, 1986, 1988 and 1997
Law of Property (Miscellaneous Provisions) Act 1994
Matrimonial Homes Act 1983
Self-Study Questions
1 What are the three parts to the title register?
2 With which titles can:
a freeholds;
b leaseholds;
be registered?
3 What is the effect of registering:
a freehold;
b leaseholds;
with these titles?
4 What interests override:
a first registration of title; and
b a registered disposition?
5 George is the fee simple owner of a house and land. Which of the following transactions would
trigger first registration of title: a the grant of a ten-year lease to Tom; b the sale of the fee simple
to Peter; c a gift of the house to David; d a first mortgage of the property to the bank; e the grant of
a five-year lease to Steven?
6 What are owner’s powers?
7 What is the distinction between:
a a unilateral notice;
b an agreed notice;
c a restriction;
and what is each used for?
8 How can the register be altered if there is a mistake? 9 When is a person entitled to compensation (an indemnity) for loss caused by a mistake in, or an alteration to, the register?
Study Unit 5 Suggested minimum study hours: 25
Topic
Leases and Tenancies
This Unit covers material contained in the Learning Project.
Introduction
There are two remaining legal estates – the fee simple and the term of years (or lease). This Unit
examines the legal nature of a lease, methods of creation and termination. It then examines the
relationship of landlord and tenant and the enforcement between them of their respective obligations.
Objectives
a To examine the legal nature of a lease.
b To consider how a legal lease should be created and the effect if one is not created.
c To consider how leases may be brought to an end.
d To consider the security of tenure provisions as they apply to residential leases, and the use of a
licence as a substitute for a lease to avoid those provisions (licences are considered in detail in
Unit 6).
e To consider implied and express covenants.
Essential Reading
These titles have been supplied as part of your study materials.
McKenzie and Phillips, Texts, Cases and Materials on Land Law,
Statutes on Property Law 2007-2008
Maudsley and Burn’s Land Law Cases and Materials
Read the relevant chapters on Leases
General Reading
These titles have not been supplied and are not essential reading, but you may wish to refer to
them to further your understanding. Elements of Land Law, Gray – Relevant Chapter(s)
Megarry’s Manual of the Law of Real Property, Oakley – Relevant
Chapter(s)
Maudsley and Burn’s Land Law: Cases and Materials, ed Burn – Relevant Chapter(s)
Case law and statutes
Addiscombe Garden Estates Ltd v Crabbe [1958] 1 QB 513; [1957] 3 All ER 563 AG Securities v
Vaughan; Antoniades v Villiers [1988] 3 WLR 1205; [1990] 1 AC 417 (HL)
Anstruther-Gough-Calthorpe v McOscar [1924] 1 KB 716
Ashburn Anstalt v Arnold [1988] 2 All ER 147
Aslan v Murphy [1989] 3 All ER 130
Barrett v Lounova (1982) Ltd [1989] 1 All ER 351
Bathurst (Earl) v Fine [1974] 1 WLR 905; [1974] 2 All ER 1160 (CA)
BHP Petroleum GB Ltd v Chesterfield Properties Ltd (2001) The Times 30 March
Bickel v Duke of Westminster [1977] QB 517; [1976] 3 WLR 805
Binions v Evans [1972] Ch 359; [1972] 2 All ER 70
Bland v Ingrams Estates Ltd (2001) The Times 18 January
Bocardo SA v S & M Hotels Ltd [1980] 1 WLR 17; [1979] 3 All ER 737
Brown v Liverpool Corporation [1969] 3 All ER 1345
Browne v Flower [1911] 1 Ch 219
Calabar Properties Ltd v Stitcher [1984] 1 WLR 287; [1983] 3 All ER 759
Celsteel Ltd v Alton House Holdings Ltd (No 2) [1987] 1 WLR 291
Centaploy Ltd v Matlodge Ltd [1974] Ch 1; [1973] All ER 720
Central Estates (Belgravia) Ltd v Woolgar (No 2) [1972] 1 WLR 1048
Chester v Buckingham Travel Ltd [1981] 1 WLR 96; [1981] 1 All ER 386
City and Metropolitan Properties Ltd v Greycroft Ltd [1987] 1 WLR 1085; (1987) 283 EG 199
Crago v Julian [1992] 1 All ER 744 (CA)
Di Palma v Victoria Square Property Co Ltd [1985] 2 All ER 676; [1985] 3 WLR 207 (CA)
Family Housing Association v Jones [1990] 1 WLR 779; [1990] 1 All ER 385
Glass v Kencakes [1966] 1 QB 611; [1964] 3 All ER 807
GMS Syndicate Ltd v Gary Elliott Ltd [1982] Ch 1; [1981] 1 All ER 619
Hadjiloucas v Crean [1987] 3 All ER 1008
Hall v Howard (1989) 57 P & CR 226
Hamilton v Martell Securities Ltd [1984] 2 WLR 699; [1984] 1 All ER 665
Hooper v Sherman [1994] NPC 153
Horrocks v Forray [1976] 1 WLR 230; [1976] 1 All ER 737
International Drilling Fluids Ltd v Louisville Investments (Uxbridge) Ltd [1986] 2 WLR 581
Kataria v Safeland plc (1997) The Times 3 December
Lace v Chantler [1944] KB 368
Land Securities plc v Receiver for the Metropolitan Police District
[1983] 1 WLR 439
London and County (A & D) Ltd v Wilfred Sportsman Ltd [1971] Ch 764
McGreal v Wake (1984) 269 EG 1254
Malzy v Eichholz [1916] 2 KB 308
Marchant v Charters [1977] 1 WLR 1181; [1977] 3 All ER 918 Midland Railway Co’s Agreement,
Re [1971] Ch 725; [1971] 1 All ER 1007 (CA)
Mikeover v Brady [1989] 3 All ER 618
National Carriers Ltd v Panalpina (Northern) Ltd [1981] 1 All ER 161
Newman v Real Estate Debenture Corporation [1940] 1 All ER 131
P & A Swift Investments v Combined English Stores Group plc [1988] 2 All ER 885
Pimms Ltd v Tallow Chandlers Co [1964] 2 QB 547 Post Office v Aquarius Properties Ltd [1987] 1
All ER 1055 Proudfoot v Hart (1890) 25 QBD 42 Prudential Assurance Co Ltd v London Residuary
Body [1992] 3 WLR 279; [1992] 3 All ER 504 (HL)
Quick v Taff-Ely Borough Council [1985] 3 WLR 981; [1985] 3 All ER 321
Regis Property Co Ltd v Dudley [1959] AC 370
Royal Philanthropic Society v County (1985) 276 EG 1068 Rugby School Governors v Tannahill
[1935] 1 KB 87 Sampson v Hodson-Pressinger [1981] 3 All ER 710 Savva and Savva v Hussein
(1997) 73 P & CR 150 (CA)
Scala House and District Property Co Ltd v Forbes [1974] QB 575
Smith v Marrable (1843) 11 M & W 5
Somma v Hazlehurst [1978] 2 All ER 1011; [1978] 1 WLR 1014
Stent v Monmouth Borough Council (1987) 282 EG 705
Street v Mountford [1985] 2 WLR 877; [1985] AC 809
Stribling v Wickham (1989) 27 EG 81
Tandon v Trustees of Spurgeon’s Homes [1982] AC 775; [1982] 1 All ER 1086
Walsh v Lonsdale (1882) 21 Ch D 9
Warren v Keen [1954] 1 QB 15; [1953] 2 All ER 1118 (CA) Westminster City Council v Clarke
[1992] 2 WLR 229; [1992] 1 All ER 695 (HL)
Yaxley v Gotts and Gotts [1999] 3 WLR 1217
Agricultural Holdings Act 1986
Agricultural Tenancies Act 1995
Common Law Procedure Act 1852: ss210–212
County Courts Act 1984: s138 (as amended by s55 Administration of Justice Act 1985)
Housing Act 1980
Housing Act 1985: ss79–117 and Schedules 1–3
Housing Act 1988
Landlord and Tenant Act 1927: ss18 and 19(1)
Landlord and Tenant Act 1954: s53 and Parts I and II
Landlord and Tenant Act 1985: ss8–16
Landlord and Tenant Act 1988: s1
Landlord and Tenant (Covenants) Act 1995
Law of Property Act 1922: s145 and Schedule 15
Law of Property Act 1925: ss52, 54, 77, 79, 141, 142, 146, 149(3) and 205(1)(xxvii)
Law of Property (Miscellaneous Provisions) Act 1989: s2
Leasehold Property (Repairs) Act 1938: s1
Leasehold Reform Act 1967
Protection from Eviction Act 1977
Rent Act 1977
Self-Study Questions
1 a What are the essentials of a lease and what are the different types of leases and tenancies?
b What formalities are required to create a legal lease?
2 In Walsh v Lonsdale (1882) 21 Ch 9:
a what was the position of the tenant at law;
b what was the position of the tenant in equity?
3 Explain the different ways a lease or tenancy may come to an end.
4 a What are the remedies available to a tenant if the landlord is in breach of a covenant?
b What are the remedies available to a landlord if the tenant is in breach of a covenant?
c Which types of breaches are irremediable?
5 a What must be established before a landlord can forfeit a lease? b What is a s146 notice?
Sample Questions
1 In 1999 Larry purchased the freehold of Greenacre a property with registered title. In 2001 Larry
granted a 99-year lease of Greenacre to Tom. In 2002 Tom granted a 40-year sub-lease of Greenacre to Sam. In 2003 Sam orally granted a sub-lease of two years of Greenacre to Unwin. Unwin
has now orally granted a monthly tenancy of the property to Vincent.
a Assuming that the correct formalities and procedure is followed in each case explain which of
the above interests will be substantively registered (ie with its own title number).
b If Larry were to sell his freehold reversion to Peter explain whether Peter would take the property
subject to all or any of the leases. Would it make any difference to your answer if Larry were to
appoint his sister Lara to act with him as trustee to enable Peter to pay the purchase money to
them as trustees?
c In 2003 Tom assigned his lease to Pam. Explain to what extent this affects Sam.
d Ignoring the question of security of tenure, which of the leases affecting Greenacre could be terminated by notice?
e Explain the legal position if instead of granting the monthly tenancy to Vincent, Unwin had instead granted him a sublease of four years’ duration.
(Wolverhampton LLB by Distance Learning Question.)
2 What formalities are required for a contract to grant a lease? Consider the effect of the following
transactions made in 1991.
a A written contract signed by Laura to grant a four-year lease to Tina.
b An oral agreement by Linda to grant a weekly tenancy to Theresa.
(Wolverhampton LLB by Distance Learning Question.)
3 Explain the effects of the Landlord and Tenant (Covenants) Act 1995.
(Wolverhampton LLB by Distance Learning Question.)
4 Last month Laura took an assignment of the freehold reversion of a dwelling house. The assignor, Bharat, granted a seven-year lease to Terry by deed in 1999. However, Terry has paid no rent
for the last seven months.
Advise Laura.
(Wolverhampton LLB by Distance Learning, January 2001, Question 3.)
5 In 1990 Laura granted Timothy a 21-year lease of a house. The lease contained (inter alia) the
following convenants on the part of the lessee.
‘To keep the premises in good and substantial repair throughout the term’ and ‘Not to use or permit or suffer the premises to be used for any business, trade or vocation but to use it as a private
residence in the occupation of one family’.
Laura has now discovered that:
a Timothy had failed to carry out necessary repairs following damage to the roof caused by recent
storms;
b a friend of Timothy’s is paying him rent to use part of the house as a studio in which to produce
and sell sculptures and other works of art;
c Timothy has not paid any rent for the past six months.
Advise Laura.
How would your answer to the above question differ, if at all, if, in November 1993, Laura had sold
the freehold reversion to Richard and it was Richard who was now seeking your advice?
(Wolverhampton LLB by Distance Learning Question.)
6 a ‘An agreement for a lease is as good as a lease.’ Discuss.
b In 1999, L, the fee simple owner of Redacre (an unregistered property) gave a written sevenyear lease to T at a rental of £10,000 per year payable quarterly. T went into possession and paid
rent to L on a monthly basis. Recently L sold Redacre to P who now wishes to obtain possession
of Redacre on the grounds that T has broken a repairing covenant.
Advise P.
(Wolverhampton LLB by Distance Learning Question.)
Study Unit 6 Suggested minimum study hours: 10
Topic
Licences
This Unit covers material contained in the Learning Project.
Introduction
This Unit examines the distinction between a lease, which is an interest in property, and a licence,
which has traditionally been regarded as merely contractual, and examines how in some circumstances licences are beginning to acquire some of the characteristics of a proprietary interest.
Objectives
An increasingly important area of land law. The Unit should be considered from two aspects. First,
the licence has been used as substitute for a lease in order to avoid the effects of the Rent Act
1977. This has already been mentioned and considered in the context of Study Unit 5.
Secondly, a new right in alieno solo appears to be emerging through the doctrine of proprietary
estoppel by way of a licence protected by the rules of estoppel. Although this Study Unit concentrates on the second aspect of licences, the opportunity is taken to bring the two together.
Two major areas to be considered are the effect of licences in commercial arrangements and the
position of residential occupiers following the Housing Act 1988.
Essential Reading
These titles have been supplied as part of your study materials.
McKenzie and Phillips, Texts, Cases and Materials on Land Law,
Statutes on Property Law 2007-2008
Maudsley and Burn’s Land Law Cases and Materials
Read the relevant chapters on Licences
General Reading
These titles have not been supplied and are not essential reading, but you may wish to refer to
them to further your understanding. Elements of Land Law, Gray – Relevant Chapter(s)
Megarry’s Manual of the Law of Real Property, Oakley – Relevant Chapter(s)
Maudsley and Burn’s Land Law: Cases and Materials, ed Burn – Relevant Chapter(s)
Case law
AG Securities v Vaughan; Antoniades v Villiers [1988] 3 WLR 1205 Ashburn Anstalt v Arnold
[1988] 2 All ER 147; [1988] 2 WLR 706; [1989] Ch 1
Bannister v Bannister [1948] 2 All ER 133
Basham (Deceased), Re [1986] 1 WLR 1498
Binions v Evans [1972] Ch 359; [1972] 2 All ER 70 (CA)
Chandler v Kerley [1978] 1 WLR 693
Clore v Theatrical Properties Ltd [1936] 3 All ER 483 (CA)
Crabb v Arun District Council [1976] Ch 179; [1975] 3 All ER 865 (CA)
Dillwyn v Llewellyn (1862) 31 LJ Ch 658
Errington v Errington and Woods [1952] 1 KB 290 Gillett v Holt and Another [2000] 2 All ER 289
Greasley v Cooke [1980] 1 WLR 1306; [1980] 3 All ER 710 Hardwick v Johnson [1978] 1 WLR
683; [1978] 2 All ER 935 (CA)
Horrocks v Forray [1976] 1 WLR 230
Hurst v Picture Theatres Ltd [1915] 1 KB 1
Inwards v Baker [1965] 2 QB 29; [1965] 1 All ER 446 (CA)
Ives (E R) Investments Ltd v High [1967] 2 QB 379; [1967] 2 WLR 789; [1967] 1 All ER 504
J T Developments v Quinn (1991) 62 P & CR 33
King v David Allen & Son Billposting Ltd [1916] 2 AC 54 Layton v Martin [1986] 2 FLR 227
Matharu v Matharu (1994) 68 P & CR 93; [1994] 2 FLR 597 (CA)
Pascoe v Turner [1979] 1 WLR 431; [1979] 2 All ER 945
Ramsden v Dyson (1866) LR 1 HL 129
Sharpe (A Bankrupt), Re [1980] 1 WLR 219; [1980] 1 All ER 198
Street v Mountford [1985] 2 WLR 877
Tanner v Tanner [1975] 1 WLR 1346; [1975] 3 All ER 776 (CA)
Taylor Fashions Ltd v Liverpool Victoria Trustees Co Ltd [1982] QB 133; [1981] 1 All ER 897
Verrall v Great Yarmouth Borough Council [1981] QB 202; [1980] 1 All ER 839
Williams v Staite [1978] 2 WLR 825
Winter Garden Theatre (London) Ltd v Millennium Productions Ltd
[1948] AC 173; [1947] 2 All ER 331 (HL)
Wood v Leadbitter (1845) 13 M & W 838
Self-Study Questions
1 What is a bare licence?
2 In what way does a bare licence differ from a contractual licence?
3 What is a licence coupled with an interest?
4 Are any of the above licences revocable?
5 What are the essential elements of proprietary estoppel?
Sample Questions
1 a What principles will a court apply in determining whether an agreement to occupy residential
premises is a licence or a tenancy? b Discuss the extent to which, if at all, a licence will be regarded by the courts as an interest in land.
(Wolverhampton LLB by Distance Learning Question.) 2 Malcolm, who lived in London, owned a
cottage in Dorset called Sea View. He was becoming worried about the cottage because he was
too busy with his work in London to look after it properly. It was beginning to become dilapidated –
he was worried that vandals might break in. Malcolm asked his son Neil, who was unemployed, to
go and live at Sea View to look after it. Neil agreed and when he acquired a job in the area he
started to repair Sea View. Malcolm continued to visit Sea View for occasional holidays and was
very pleased when Neil showed him the extensive renovations and repairs he had carried out. He
encouraged Neil to proceed to build a garage at the property. When Neil got married Malcolm encouraged Neil and his wife Olive to stay at Sea View, and refused to accept the rent they offered
saying ‘Don’t worry, I will see that you are alright when I am gone’. However, Malcolm subsequently re-married and when Malcolm died last month it was found that he had left all his property
including Sea View to his wife, Pam, absolutely.
Advise Neil.
(Wolverhampton LLB by Distance Learning Question.)
Study Unit 7 Suggested minimum study hours: 15
Topic
Freehold Covenants
Introduction
This Unit examines the rules under which covenants affecting freehold land can be enforced and
impose restrictions on land which are binding on persons who were not parties to the original
transaction.
Objectives
Following covenants in leases (Study Unit 6) it is now necessary to consider the rules relating to
covenants in a freehold context. The problems arise from either the need to consider the running
of the benefit or burden of the covenant or the methods by which the covenants may be discharged.
Essential Reading
These titles have been supplied as part of your study materials.
McKenzie and Phillips, Texts, Cases and Materials on Land Law,
Statutes on Property Law 2007-2008
Maudsley and Burn’s Land Law Cases and Materials
Read the relevant chapter(s) on Freehold Covenants
General Reading
These titles have not been supplied and are not essential reading, but you may wish to refer to
them to further your understanding. Elements of Land Law, Gray – Relevant Chapter(s)
Megarry’s Manual of the Law of Real Property, Oakley – Relevant Chapter(s)
Maudsley and Burn’s Land Law: Cases and Materials, ed Burn – Relevant Chapter(s)
Case law and statutes
Austerberry v Corporation of Oldham (1885) 29 Ch D 750
Ballard’s Conveyance, Re [1937] Ch 473; [1937] 2 All ER 691
Baxter v Four Oaks Properties Ltd [1965] Ch 816; [1965] 1 All ER 906
Chatsworth Estates Co v Fewell [1931] 1 Ch 224
Crow v Wood [1971] 1 QB 77; [1970] 3 All ER 425
Dolphin’s Conveyance, Re [1970] 1 Ch 654; [1970] 2 All ER 664
E & GC Ltd v Bate (1935) 79 LJ News 203
Elliston v Reacher [1908] 2 Ch 665 (CA)
Emile Elias & Co v Pine Groves [1993] 1 WLR 305
Federated Homes Ltd v Mill Lodge Properties Ltd [1980] 1 All ER 371;
[1980] 1 WLR 594 (CA)
Formby v Barker [1903] 2 Ch 539
Gilbert v Spoor [1983] Ch 27
Halsall v Brizell [1957] Ch 169; [1957] 1 All ER 371; [1957] 2 WLR 123
Haywood v Brunswick Permanent Benefit Building Society (1881) 8 QBD 403
Martin’s Application, Re [1989] 5 EG 585
McMorris v Brown and Another (1998) The Times 29 August (JCPC)
Newton Abbot Co-operative Society Ltd v Williamson & Treadgold Ltd
[1952] Ch 286; [1952] 1 All ER 279
Renals v Cowlishaw (1879) 11 Ch D 866
Rhone v Stephens [1994] 2 WLR 429 (HL); [1994] 2 All ER 65 (HL)
Roake v Chadha [1984] 1 WLR 40; [1983] 3 All ER 503
Rogers v Hosegood [1900] 2 Ch 388; [1900] 3 All ER 915
Sainsbury (J) plc v Enfield London Borough Council [1989] 2 All ER
817; [1989] 1 WLR 590
Smith and Snipes Hall Farm Ltd v River Douglas Catchment Board
[1949] 2 KB 500; [1949] 2 All ER 179 (CA)
Texaco Antilles Ltd v Kernochan [1973] AC 609
Tiltwood, Sussex, Re; Barrett v Bond [1978] 2 All ER 10
Tito v Waddell (No 2) [1977] Ch 106
Tulk v Moxhay (1848) 2 Ph 774
University of Westminster, Re [1998] 3 All ER 1014 (CA)
Land Charges Act 1972: s2
Law of Property Act 1925: ss56, 78, 79 and 84
Town and Country Planning Act 1990: ss106
Self-Study Questions
1 When will the benefit of a covenant run with land?
2 When will the burden of a covenant run with land?
3 How is a restrictive covenant protected:
a in unregistered land;
b in registered land?
4 What is the significance of a building scheme?
5 What was decided by:
a Halsall v Brizell;
b Tulk v Moxhay?
Sample Questions
1 Copperfield, the estate owner in fee simple of adjoining houses, Elmwood and Oakwood, in
1970 sold the latter to Peggotty who covented to use it as a private dwelling-house only, and to
maintain (in good order) a garden wall between the two properties. Peggotty has now sold Oakwood to Heep. Heep is carrying on a business in Oakwood and has allowed the wall to collapse in
several places. Peggotty is travelling abroad.
Advise Copperfield.
(Wolverhampton LLB by Distance Learning Question.)
2 Janice is the freehold owner of a large estate known as Red-acre. Due to family debts she has
been forced to sell off a number of plots of land. In 1998 she sold a five-acre plot to Eric (‘the blue
plot’) and in 1999 she sold a ten-acre plot to Barbara (‘the green plot’).
In both conveyances it was covenanted that Eric and Barbara would use the plots for the erection
and maintenance of residential property alone and that they would pay, in equal shares, for the
upkeep of the lane which links the plots to the country road. In April 1999, Eric decided to sell his
plot to Dora who is now using the plot as a base for her pizza delivery firm.
Advise Janice and Barbara.
(Wolverhampton LLB by Distance Learning, May 2001, Question 5.)
3 Sue owns a Health Farm. She has decided to extend her business and wants to buy several
acres of land from her neighbour, Pig Farmer Alex. Alex is concerned to restrict the use of any
land that he is prepared to sell. He is particularly anxious to ensure that if any sale is agreed that:
a the land is not used for any purpose other than for the provision of services relating to the Health
Farm;
b that Sue and her successors in title shall construct and maintain a wall around the land sold to
prevent domestic pets from straying onto the Pig Farm.
Advise Alex.
(Wolverhampton LLB by Distance Learning Question.)
Learning Project Suggested minimum study hours: 50
In common with all the modules that form part of the LLB by Distance Learning programme this
module involves a Learning Project. Undergraduate students at the University of Wolverhampton
are required to demonstrate that they are capable of independent research before they can be
recommended for the award of a degree. For distance learning students this is assessed by reference to the
Learning Project you undertake in respect of each module. It requires you to pay specific attention
to a list of defined reading. Commonly covering a range of cases and statutes you are required to
demonstrate your mastery of the area(s) of law concerned by undertaking a compulsory question
as part of the end of module examination. This will commonly take the form of an extended legal
problem and require you to demonstrate not only that you understand the areas of law concerned
but are able to apply them clearly and without error. It could also take the form of an essay question requiring you to demonstrate an ability to comment on linked areas of law. Particular attention
will be paid to the accuracy with which you cite the law and the arguments of those responsible for
its
development. You will also be expected to demonstrate that you understand, and have not been
confused by, the ambiguities and contradictions that exist in the undergraduate study of the law.
This question, which will change with each examination paper, will account for 50 per cent of the
overall grade and require you to devote one hour of the two-hour examination period to it. Please
note that for each examination you are allowed 15 minutes’ reading time on top of the two hours
you have to write your answers.
Learning Project for Property and Trusts 1: Leases and Licences
Essential Reading
McKenzie and Phillips, Texts, Cases and Materials on Land Law,
Statutes on Property Law 2007-2008
Maudsley and Burn’s Land Law Cases and Materials
Read the relevant chapters on Leases and Licences in your text book and cases and materials
book.
Guidance notes
This Learning Project is covered by Units 5 and 6 of your Module Planner. In carrying out your
reading and research you should give special consideration to the following key points.
The creation of leases and their operation in the context of land law principles.
The creation and classification of licences.
The differences between leases and licences.
The relationship of landlord and tenant and the enforceability of covenants.
How a lease may come to an end and the remedies available to a landlord.
Case law and statutes
AG Securities v Vaughan and Antoniades v Villiers [1988] 3 WLR 1205 (HL)
Ashburn Anstalt v Arnold [1988] 2 All ER 147
Aslan v Murphy [1989] 3 All ER 130
Crabb v Arun District Council [1976] Ch 179
Dodds v Walker [1981] 2 All ER 609
Errington v Errington and Woods [1952] 1 KB 290 Hadjiloucas v Crean [1987] 3 All ER 1008 Hammersmith and Fulham London Borough Council v Monk [1991] 3 WLR 1144 (HL)
Inwards v Baker [1965] 2 QB 29
Kataria v Safeland plc (1997) The Times 3 December (CA)
Matharu v Matharu [1994] 2 FLR 597; (1994) 68 P and CR 93 (CA)
Mikeover v Brady [1989] 3 All ER 618
Norris v Checksfield [1991] 1 WLR 1241 (CA)
O’May v City of London Real Property Co Ltd [1982] 1 All ER 660 Post Office v Aquarius Properties Ltd [1987] 1 All ER 1055 Quick v Taff-Ely Borough Council [1985] 3 All ER 321 Savva and
Savva v Hussein (1997) 73 P & CR 150 (CA) Somma v Hazelhurst [1978] 1 WLR 1014 (CA)
Stent v Monmouth Borough Council (1987) 282 EG 705 Street v Mountford [1985] 2 WLR 877
(HL)
Stribling v Wickham (1989) 27 EG 81
Tandon v Trustees of Spurgeon’s Homes [1982] AC 755 Westminster City Council v Clarke [1992]
2 WLR 229 (HL)
Winter Garden Theatre (London) Ltd v Millennium Productions Ltd [1948] AC 173
Agricultural Holdings Act 1986
Agricultural Tenancies Act 1995
Housing Act 1980
Housing Acts 1985 and 1988
Landlord and Tenant Act 1954: Pts I and II
Landlord and Tenant Acts 1985 and 1988
Law of Property Act 1925: ss52–54
Leasehold Reform Act 1967
Protection from Eviction Act 1977
Rent Act 1977
Sample Questions
1 The Tipton Trust (‘the Trust’) was granted a licence from the Wolverton Local Authority in respect of the Riverside Hostel (‘the Hostel’). The Trust used the Hostel to house homeless people
in the locality. In January 2001, the Trust granted a ‘licence’ to Bert of a room in the Hostel. However, Bert claims that the ‘licence agreement’ provides him with exclusive possession of his room.
The Trust now wants to use the room for another occupant.
Advise the Trust as to the nature of Bert’s interest in the Hostel.
(Wolverhampton LLB by Distance Learning, January 2001, Question 1.)
2 ‘Street v Mountford has closed a chapter in the history of the law relating to leases which could
well be described as an exercise in legal pedantry.’
Discuss the validity of the above statement.
(Wolverhampton LLB by Distance Learning, May 2001, Question 1.)
3 It has been said that an agreement for a lease is as good as a lease. Critically analyse this
proposition and discuss whether you think it is an accurate statement of the legal position.
(Wolverhampton LLB by Distance Learning Question.)
4 Thomas owns three shops. In 1993 he grants leases for 20 years to Alice, Brian and Claude, of
one, two and three respectively. Each lease contains the usual provisions for forfeiture for nonpayment of rent and breach of covenant. Shop one let to Alice is a flower shop, shop two let to
Brian is a bookshop and shop three let to Claude is a record and music shop. Each lease contains
a covenant that the landlord’s consent to an assignment or sub-letting is needed, and the
landlord’s consent will also be needed if the shops are to be used for any other purpose. Each
lease also contains a clause that the tenant is to keep the property in good repair. In 2002 Alice,
without Thomas’s agreement, assigns the lease to David. David changes the use of the shop to a
pharmacy, without Thomas’s agreement. Brian falls into rent arrears. Claude allows the physical
condition of his shop to deteriorate and does not carry out necessary repairs.
Advise Thomas as to what rights he has against Alice, Brian, Claude and David.
(Wolverhampton LLB by Distance Learning Question.)
Practice Question and Suggested Answer
The following test is designed for practice only and does NOT count as part of the assessment
regime. A Suggested Solution is, however, offered in the following section. Students are advised
not to consult this solution until they have completed the test. It is expected that you will return
your answer to the College for marking and feedback. Unless you undertake such work you will
not gain an insight into your academic strengths and weaknesses before you attempt the examination.
Before attempting your answer, please ensure that you understand the assessment criteria explained in the Award Guide, and the guidance contained in the section of the Module Planner
headed ‘Skills to be Developed and Examined’.
Question
Jonathan Harmer Harrison and his wife Valerie Barbara Harrison are the joint owners of Holly
Tree Farm, Kingsville. The title to the farm is unregistered. The farm consists of a farmhouse,
where Jonathan and Valerie live, two cottages, one occupied by their son Henry and one by their
daughter Louise, 400 acres of pasture and arable land, a pig unit and various outbuildings. In
1988 they granted their son Henry a 15-year lease of the farm (excluding the farmhouse and the
cottage occupied by Louise), the lease containing an option for Henry to purchase the freehold in
the land and buildings comprised in the lease at any time during the currency of the lease at the
price of £25,000. In 2001 Jonathan and Valerie had a serious disagreement with Henry and decided that they did not want him to be able to purchase the farm. They decided that they would rather
the farm passed to Louise and be used for the benefit of her and her children. After discussions
with Louise when the whole situation was explained to her it was agreed that she would purchase
the whole farm, subject to Henry’s lease, from them at the price of £5,000. They did however wish
to carry on living in the farmhouse. Originally a lease for their lives was discussed but it was eventually agreed that immediately after the transfer to Louise she would grant them a ten-year lease
of the farmhouse only at an annual rent of £100. In November 2001, the fee simple was transferred to Louise and she immediately granted the ten-45 year lease to her parents. Henry was unaware of these transactions until after they were completed and he was told that he henceforth
had to pay the rent to Louise. He immediately served a notice on Louise requiring her to transfer
the farm in accordance with the option (the farm at that time was worth £650,000). A Land Charges Registry search which Louise had carried out when she acquired the farm had revealed no
subsisting entries against her parents’ names. It subsequently came to light that Henry’s solicitors
had erroneously registered the option against Jonathan Harrison Harmer and Valerie Barbara
Harmer.
Jonathan and Valerie were also the trustees of a family trust set up by Jonathan’s father in his will.
The terms of the trust were that they were to hold the trust property upon trust for Henry and Louise during their lifetimes and the remainder upon trust for such of Henry and Louise’s children as
should attain the age of 18 years. The trust property included some farm land in a neighbouring
village – the title to which was unregistered. Oliver Stone, a farmer, indicated his willingness to
buy this land at a good price and accordingly they sold it to him.
1 Explain the legal nature of a lease for life and a ten-year lease and explain why did they decide
to grant a ten-year lease rather than a lease for Jonathan and Valerie’s lives?
2 Explain Louise’s legal position with regard to Henry’s exercise of the option. Will she be required
to transfer the farm to him or not? 3 What are the effects of the sale of the agricultural land to Oliver Stone on the interests of the beneficiaries under the trust?
In each case you should refer to relevant case law and/or legislation.
(Wolverhampton LLB by Distance Learning Question.)
Suggested Answer to Practice Question
NB: Do not consult this solution until you have completed the test.
Outline Answer
1 Definition of a lease – one of the two legal estates under the LPA 1925. It has to be for a term
certain and definable at the outset: see Lace v Chantler (1944). A lease for life is not certain and
under s149(6) LPA such a lease is converted to a 90-year lease, determinable by notice after the
death of the tenant. A ten-year lease however is a term certain and takes effect without qualification. It continues for ten years. It has the benefit of being certain although at the end of ten years
the tenants have no right to continue in occupation. 2 This question deals with unregistered land,
and therefore the Land Registration Acts have no application.
Henry has a 15-year lease – a legal estate under s1 LPA. He also has an option to purchase the
freehold. An option is not in the list of legal estates or interests in s1 and therefore can only be equitable. It is binding on Henry’s parents without qualification as the option is a contract between
them. The issue is whether when the farm is transferred to Louise she acquires the farm subject to
the option with the result that Henry can enforce it against her, or whether she takes the land free
of his rights. An option is an estate contract which is registrable as a Class C(iv) land charge under the Land Charges Act 1972. There are two issues: what is the effect of the search carried out
by Louise, and what is the effect of the registration? Louise searched against the correct names
and that search revealed no entries. She can rely on the certificate. The registration as it was effected in the wrong names is ineffective against a person who searches against the correct
names: see Oak Building Society v Blackburn (1968) and Diligent Finance v Alleyne (1972). It is
as if the charge had not been registered at all. The fact that she knew of the option and was apparently part of a scheme to cut Henry out is irrelevant: see Midland Bank v Green (1981). Good
faith is not necessary. All that a person has to be is a purchaser for money or money’s worth. The
price paid was not such as to render the consideration illusory.
3 The land is held under a trust. The legal estate is owned by the trustees and the equitable or
beneficial interest is owned by the beneficiaries. The basic principle is that an equitable interest is
enforceable against all save a bona fide purchaser for value of a legal estate without notice. There
is an exception to this however in that if the purchase price is paid to two or more trustees then the
interests of the beneficiaries under a trust are overreached, ie transferred to the purchase money
in the hands of the trustees, and it matters not whether the purchaser has notice or not of the beneficiaries’ interests. As in this case there are two trustees, Oliver takes the land free of the
children’s interests which are transferred to the purchase money in the hands of the trustees.
Revision
What to revise
Consider carefully what you have been told about the format of the examination. How many questions will you be required to answer in what length of time? Work out how long you are likely to
have to write an answer to any one question.
Look at past exam papers. A sample can be accessed via the School of Legal Studies website
www.wlv.ac.uk/sls. They may help you to identify the questions which are most likely to appear on
your exam; and on which you can concentrate your revision. This is known as question spotting
and, although this is not advisable, it may sometimes be necessary. If you have to do this, you
should revise two additional topics just in case: the question on one of the topics on which you
have concentrated most may be phrased in such a way that you are not certain how to answer it.
It is, however, safer to deal with every topic in the module so that you are prepared for all questions.
By looking at past exam papers you may also be able to determine whether certain topics tend to
be examined by way of problem scenarios or general discussion questions. Structure your revision
to accommodate the different approaches those two different types of question require.
Look closely at the topics covered by the module. Those topics which have been given the greatest emphasis are a good bet to appear in the exam.
The question in the Learning Project is compulsory so make sure that your revision is thorough on
the topic, or topics, it covers.
Planning your revision
The best method of revision is to revise continuously throughout your study of a module, but
whether you revise continuously or prefer the last minute approach, try to relax on the day before
an exam. To do well you need to be both physically and mentally fit.
Well before the exam period make yourself a revision calendar. Make sure that the revision period
you plan is long enough to cover all of the modules you have studied, and gives you regular
breaks away from your studies. You need to start your revision at least two weeks before the examination period. It is not wise to plan to revise for more than an hour at a time without a short
break. You should build in some days in which you put revision aside altogether and do something
which will take your mind off the upcoming exam period.
Don’t just divide the revision period equally between topics. Make a realistic appraisal of which
topic(s) you are weakest in and plan to give them the most time. In deciding how much time to
give each topic you should also take into account how much the exam counts towards your overall
mark. In other words, plan your revision to do best on exams which will give you the most benefit
in terms of your overall results.
Do not concentrate all your revision of any one topic in a solid block. You will find that your concentration will be better if you rotate your revision from topic to topic.
Plan your revision of any one topic in stages. The first stage is to acquire a knowledge of the topic.
This involves re-reading your notes and whatever is necessary in your books. The second stage is
to break that knowledge down into easily remembered key components. The third stage is to hone
your ability to identify issues and relate them to those key components. This is best accomplished
by writing answers to past exam questions.
How to revise
If you have any general problems with your studying, don’t just sit there hoping it will come right in
the end; contact the Module Leader or the College.
There are a number of stages in the revision process. First you have to ensure that you have an
adequate knowledge of the topics. This is a matter of re-reading notes and filling in gaps by reading relevant sections of your Textbook or other materials until you have reached the point where
you understand the material being dealt with.
While you are reviewing your notes and other study materials, you should be identifying and marking key points which you can return to when you start to make your revision notes.
Remember: revision can only be effective if it is based on a previously acquired basic knowledge
and understanding of the topics.
The second stage of revision is to create a set of revision notes.
These will be aimed at (1) setting out key points and (2) relating these to each other in such a way
that they form a coherent picture of a particular topic (3) identifying key cases and/or statutory provisions which you need to know details of.
There are numerous ways of structuring revision notes. Which you choose will be a matter of personal preference. The basic aims, however, are to create a set of notes which you can review
quickly many times; and one from which you can retain a vivid mental image so that you will be
easily able to recall them in the examination.
Therefore your revision notes should be made up of key words and phrases. Each entry in the
notes should represent a condensation of information about the topic at hand. Strike a balance
between brevity and comprehensiveness. Some concepts may be too complicated to remember
without a detailed note. Others readily lend themselves to summing up in a phrase of even a word
or two. A rule of thumb is to confine all the revision notes on one topic to one page or less of A4
paper.
Using different colours for different topics, or writing the notes so that they create a distinctive pattern on the page, is a way of creating a vivid mental image of your notes. During the exam you
may be able to recall the particular information you need by calling up a ‘picture’ of the information. A stepped outline or a spider diagram are two of the ways you can create a pattern which will
help you to recall information by focussing on the image and the way it was written down. Spider
diagrams are especially useful for creating an image of the way ideas or rules link together.
Your friends may think you have become very eccentric but it is a good idea to stroll about your
room reciting out loud the contents of a page of revision notes. This, after all, is how actors learn
their lines before a performance, and you are doing the same thing when you set out to learn your
revision notes before an exam.
You may be tempted to shortcut the process of building up a set of your own revision notes by
buying one of the many revision guides which are available. These can be extremely useful to give
you a very condensed overview of a topic, but remember this: what makes for exam success is
displaying to the examiner your own knowledge of the topic. The only way to create your own
knowledge of the topic is to create your own set of revision notes using all those other sources
The third stage of revision is self-testing. Pick a question from a past exam – and this is where
having made a considered choice about which topics to revise is essential – and write an answer
to it under ‘exam conditions’: ie taking the length of time you would be given to do the question in
the exam. Then go back over your revision notes on that topic and see what you have left out,
what you did wrong and what you put in that was not really relevant to the question asked.
You may want to return to your original notes from lectures and reading and have another look at
that material. After half an hour or more break, pick another question on the same topic and write
an answer to it. Go through the same review process again. Repeat the whole process once or
twice more. The advantages of doing this will soon become apparent. You will identify weaknesses in your knowledge and/or understanding. You will see how some components of an answer to a
question on a particular topic will re-appear over and over again no matter how the question is
worded, and you will have written those bits down often enough that you will not have to spend
time in the exam trying to work out how to phrase that part of your answer.
The benefit of self-testing is enormously enhanced if you do it as part of a group. Three or four of
you working together will amongst you have a very comprehensive knowledge of any topic. What
you are weak on, you can pick up from one of the others and vice versa. There is also the psychological boost which comes from working as part of a team. You will find that some of the things
you thought it was important to write about completely eluded other members of the group. Also,
you will not have seen some important point which they did. Discussing all of your answers together will help you to craft a complete answer to all of the aspects of the question. If you are not in
contact with fellow distance learning students, ask members of your family or friends to test you.
As well as helping you, this will give them a valuable insight into how much your studies
mean to you and the hard work involved.
Taking the Examination
Hints for Answering Questions
The very first thing you must do is to read the whole question. If the question is a problem:
DO
Ask yourself:
• Why am I being asked to advise this person?
• What has gone wrong?
• What are the areas of law involved?
If the question is an essay:
DO
Ask yourself:
• What area of law does the essay cover?
• Which part of that area of law is the essay asking me to discuss?
• Which points do I have to focus on in answering the question?
DO NOT, IN EITHER TYPE OF QUESTION
• Start writing before you have read the whole question.
• Identify one area of law and write all you know about that area without putting it into the context
of the question.
The next step is to write an outline plan of your answer. In this plan, you should identify the main
points in the problem. If you do not want the plan to be taken into account in your answer, then
cross it through and your examiner will ignore it. When you are writing your answer, follow your
plan. This will help you avoid discussing areas of law which are not relevant to the question. It will
also help you ensure that you cover all the points raised in the question and do so in a
logical, reasoned way. After you have read the question and written your outline plan you should
re-read the question and then attempt the answer.
WRITING THE ANSWER
In writing your answer, start at the beginning and work through to the end. Make sure that you
deal with each issue raised and that you apply the law to the relevant points. Reach a conclusion
at the end. Do not start with your conclusion as you may find, part of the way through your answer,
that you realise your original conclusion was wrong and you will have to start again.
Always give authorities for your answers. These authorities will be statutes and/or cases.
DO
• Address the issues from the start of your answer.
• Start at the beginning and work through to the end.
• Reach a conclusion at the end.
• Relate your answer to specific points in the question.
• Give authority for every point of law you make.
• Write clearly and in good English.
• Time your answers.
DO NOT
• Write all you know about the area before you start actually answering the question; you will only
have to write it out again in dealing with the specific points in the question.
• Reach a conclusion at the beginning.
• Move away from the structure of your outline plan.
• Give unsupported statements of law.
• Spend so long answering one question that you do not have enough time to answer the rest.
• Write in note form (unless you have spent too much time on your previous answers and are left
with insufficient time to write a full answer).
• Copy large amounts of material from the books you are allowed to take into the examination.
Make sure that you put all quotations in quotation marks otherwise you may be thought to have
been cheating.
Module Questionnaire
Property and Trusts 1
The School of Legal Studies and Holborn College attach great importance to your views. We
would, therefore, be grateful, if now that you have finished studying this module, you would answer the following questions and return them to the address give below. Your answers will be considered by the distance learning teaching team and used in updating teaching materials.
1 What two things did you find most useful about the materials you were provided with for this
module?
________________________________________________________________
_____________________________________________________
2 What two things did you find least helpful about the materials you were provided with for this
module?
________________________________________________________________
_________________________________________
3 Please identify any typographical errors you encountered in using this planner (please make reference to appropriate page numbers).
________________________________________________________________
___________________________
Return to:
External Programmes Administrator
School of Legal Studies
University of Wolverhampton
Arthur Storer Building
Molineux Street
Wolverhampton
WV1 1SB
United Kingdom
You may if you wish e-mail your answers to in4655@wlv.ac.uk