Land Law Assignment

This assignment provides answers to questions related to land law, covering topics such as property rights, land ownership, purchase procedures, taxation, and consecutive rights. It explores legal and equitable interests, examines relevant case laws, and discusses the concept of overreaching.

Land law

Table of Contents
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
QUESTION 2 ..................................................................................................................................1
QUESTION 3...................................................................................................................................2
QUESTION 4...................................................................................................................................3
QUESTION 5...................................................................................................................................3
QUESTION 6...................................................................................................................................4
QUESTION 7...................................................................................................................................4
QUESTION 8...................................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
The present report is relayed with presentation of answers to questions related with land
law. They are connected with land, property rights, sale, purchase of land and rights and
privileges attached with land. The answers are presented in form of response to each question.
The interest and rights attached to property and other related terms are also discussed in report.
To present a significant response relevant study material is referred along with application case
laws.
QUESTION 1
PROPERTY RIGHTS: this can be defined as rights of a part on the property to effects the
ownership of the occupier. These are the rights to affect the ability of a person in his/her capacity
as an owner of the land along with the person who had crested the rights originally. Significance
can be stated as this provides rights have certain quality other than merely using it and makes
them fit to endure changes beyond ownership.
There are two types of property hts in land and interest in them can be legal or equitable:
1. Estate in land
2. Interest in land
Legal interest: this arise when it is rights is created through execution of deed as per section 11of
the land of property act, 1995; and it must be registered as per provisions of land registration
Act, 2002.
Equitable interest: this interest is created on basis of three factors, first, they are equitable
because they can not be legal; second, being under the ambit of section 1 as legal rights the deed
have not been use when required and third, falls in section 1, dded is used but have not been
registered when needed.
To disguise between both this rights is necessary as legal rights creates biding effects and
can be enforced with help of law and courts on the other hand equitable rights do not grant such
effect.
1 Legal estates and equitable interests. 2018 .[Online]. Available through :<
https://www.legislation.gov.uk/ukpga/Geo5/15-16/20/section/1>.
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QUESTION 2
LAND: this can be defined as a real property which has certain different characteristics when
compared with other types of property.
As per section 205(1)(ix) of Law of property Act, 1925, land included any land of tenure,
mines and minerals, irrespective of the fact of its holding apart from surface, building or-its part
or other material hereditary. It also includes a mansion, an advowoson, and rented or other
2material inheritance along with easement, rights, privilege or benefits in, or derived from such
land.
In other words land means actual land i.e. soil, ground and earth and it includes building
on the land, fixtures attached to it, mines and minerals, generally when a land is transferred
fixture attached to it also gets transferred. But chattels are not included in land as they part of
personal property. Similarly, airspace 200 meters above roof level is also part of land.
Case law: TSB Bank PLC v Botham 1996
In this case it was held by the court that the bath, toilets, bathroom and kitchen units and
fittings as fixtures3. Washing machine, curtains, carpets, lights, other appliances were declared
as chattels. So the fitting are part of land and nut those which are chattels do not form part of
land.
QUESTION 3
Procedure of purchasing a property:
Preliminary Negotiation: with selection of the property an offer is made and negotiation
is done to reach agreeable price by both parties in this transaction. In this buyer ascertain the tax
band, fixtures and fittings related with property. A survey is also done to find out any repair
work needed and to decide who will pay for that.
Contract and its enforcement: A contract is formed to transfer the ownership to buyer.
The contract must be in accordance with section 2 of law of property(miscellaneous Provisions)
Act, 19894. Contract must include all agreed terms be signed by both parties. In case property is
2 General definitions. 2018. [Online]. Available thorugh ;< https://www.legislation.gov.uk/ukpga/Geo5/15-
16/20/section/205 >.
3 TSB Bank PLC v Botham 1996, 2018. [Online]. Available thorugh :<
http://e-lawresources.co.uk/Land/Botham-v-TSB-Bank.php>.
4 Contracts for sale etc. of land to be made by signed writing. .2018. [Online]. Available through :<
https://www.legislation.gov.uk/ukpga/1989/34/section/2>.
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given on lease for less than 3 years or is purchased at public auction the documentary
requirements differ from above.
Once the contract is signed and exchanged it creates a legal binding effect. This is
enforceable through equitable remedy of specific performance means through court only. The
contract in equitable interest is property by section 1(3) of LPA, 1925 through registration.
Completion of purchase: payment is done by purchaser and rights are legally transferred to
buyer with possession of the property. The time between completion of contract and registration
of title is considered as registration gap.
QUESTION 4
Taxation associated with land:
Stamp duty land tax: on purchase of land the buyer is taxed on land with threshold
limit. Currently it is £125000 on residential property and £150000 on non residential property5.
There is an exemption for property purchased by charitable institution. The rates of stamp duty
is
Threshold in £ Rate in %
0- 125000 0
125000- 250000 2
250001-925000 5
9250001 -1.5 million 10
Value added tax: Value added tax( VAT) is payable on sell and purchase of commercial
property income and cost associated with business which includes coast of building. At present
rate of tax on property is 20%.
Inheritance tax: In event of death of a person his/her property becomes part of their
estate and its amount in considered in total estate value. At present inheritance is payable if total
value of estate exceeds £325000. In case a home is left to children, or grandchildren the limit is
raised to £425000. The tax rate on inheritance value is 40% on the value exceed the above
5 Stamp Duty Land Tax. 2018 .[Online]. Available through :< https://www.gov.uk/stamp-duty-
land-tax>.
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prescribed limit. In case, inheritance is given as co ownership, in event of death joint ownership
is triggered and does not become part of inheritance for tax purpose.
QUESTION 5
Consecutive rights in land (Settlements and Trusts for Sale):
AS per trust of Land and Appointment of Trustee Act, 1996:
Consecutive rights can be defined as 2 or more people have rights and entitlement to enjoyment
on the land of succession. This can be created by two ways:
1. Settlement: under this provision land is re severed in order to make sure that property
remain in family over generations through line the eldest male heir6. In this provision
related with distribution of income generated from such is also included for living
dependents. The original fee simple owner is termed as owner create a list of estate and
remains in possession of all property during his lifetime.
2. Trust for sale: this is more often used in case property is purchased for investment
purpose. In this land is purchased for not to kept for longtime and the fee simple estate is
transferred to trustee who manages the estate for purpose for which it was bought.
The terms of sales include the doctrine of convention which is an equitable doctrine which takes
to sale property of trust in term of monetary value related with land. In this it is considered that
beneficiary has more interest in money rather than in land.
QUESTION 6
Difference between a proprietary interest in land and other personal property
Propitiatory interest in land:
This is a right which is acquired by a person in addition with the person who owns the property.
In common law land, fixtures and fitting attached to it are classified as reals property interest.
Interest in land can be divided in two parts i.e. legal and equitable.
Propitiatory interest in personal property:
Leasehold interest in land along with interest in tangible (goods, animal or commodities) and
intangibles (stocks, bonds or bank accounts) are classified as personal property interests.
Case law: National provincial bank v Anisworth (1965)
6 What constitutes a settlement. 2018. [Online]. Available through
:<https://www.legislation.gov.uk/ukpga/Geo5/15-16/18/section/1>.
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In this case it was led by the court that wife do not have any proprietary interest in land which
was capable of amounting to an overriding interest7. Her right to remain in house was mere a
personal interest against her husband. She had neither legal nor equitable interest in house.
QUESTION 7
Estates and interests that can exist in and over Land
Estate in land all land in England and wales are owned by crown and all, other persons may own
merely an estate in land. This is equivalent to ownership pf the land for a limited time period.
The ownership can be bifurcated in three parts:
The fee simple or freehold estate: this mean as person owns this estate in land and is related
with absolute possession. A person has a right to use and enjoy the land for duration of
guarantee.
The handhold estate: this right comprises to use and enjoy land excursively as owner for a
stipulated time period.
The fee tail: this can be defined as interest in land of other person. The owner is allows using
land for his/her lifetime and a parental, grandparent link can be shown to establish an interest in
land.
Interest in land:
This gives equivalent rights of ownership for a fixed period of time. This can be denoted as those
proprietary rights that is enjoyed by a person in the land of another. This also includes rights
which can be transferred or sold to another person.
QUESTION 8
Formalities that are required in order to create estates and interests and the concept of
overreaching:
Statutory overreaching of equitable rights and interest:
1. Registered land: legal laws are applicable in this such as lands registration act and land
registration rules. In this, titles are registered and a secondary registration of land is
registered charges8. The unregistered rights override and protectable registered interest
are other two rights related with registered land. in case of registered land interest in
7 National Provincial Bank v Ainsworth[1965] 3 WLR 1 House of Lord. 2018 [Online].
Available through :< http://e-lawresources.co.uk/Land/National-Provincial-Bank-v-
Ainsworth.php>.
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propitiatory righs override on transferee of land under LAR 2002. The equitable owners
right are transferred to the purchase money of the land that has been paid. Overreaching
is limited yet powerful.
2. Unregistered land: in this common laws are applicable along with land charges act. In
this, titles on the land are not registered, legal rights, land charges and other equitable
interest deplaned upon the doctrine of notice or to be overreached. This can be said that
unregistered land is a fading concept and soon its will become obsolete. As in preset time
registration is made compulsory and this concept is not given importance as this not
provide legal enforciability and biding effect.
CONCLUSION
It can be concluded that with land there are attached certain rights which give occupier an
entitlement of full enjoyment of the land and property. On sale of such land the rights also gets
transferred to buyer. The property has two interest in it legal and equitable. On purchase and
sale of property certain taxes have to basis that are stamp duty, value added tax and inheritance
tax. There are two types of rights in land- consecutive and concurrent.
8 Conveyances overreaching certain equitable interests and powers. 2018. [Online]. Available
through :<https://www.legislation.gov.uk/ukpga/Geo5/15-16/20/section/2>.
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REFERENCES
Books and Journals
Guanghua, Z., 2010. The Rights of Labor and the Propitiatory State [J]. Open Times. 5. p.004.
Online
Real and personal property. 2018. [Online]. Available thorough
:<https://www.britannica.com/topic/real-property>.
<>,.<><>:<httplawresources.co.uk/Land/Botham-v-TSB-Bank.php>.
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