CILEx L3 Land Law Basics 1 — Questions and Answers
Question 1: What is the difference between 'freehold' and 'leasehold' ownership of land?
- Freehold ownership is indefinite; leasehold is for a fixed or ascertainable period (Correct answer)
- Freehold ownership can be sold; leasehold cannot
- Freehold applies only to houses; leasehold only to flats
- Freehold ownership gives more rights than leasehold in all cases
Correct answer: Freehold ownership is indefinite; leasehold is for a fixed or ascertainable period
A freehold estate (fee simple absolute in possession) is the most complete form of land ownership — it lasts indefinitely. A leasehold estate is held for a defined term or on periodic terms, with the freehold reverting to the landlord on expiry.
Question 2: What are the two legal estates in land recognised by the Law of Property Act 1925?
- Fee simple absolute in possession and term of years absolute (Correct answer)
- Fee simple and fee tail
- Freehold and leasehold in equity
- Life estate and remainder
Correct answer: Fee simple absolute in possession and term of years absolute
Under s.1 Law of Property Act 1925, there are only two legal estates: the fee simple absolute in possession (freehold) and the term of years absolute (leasehold). All other interests in land are equitable.
Question 3: What is a 'legal charge' over land?
- A security interest granted over land to secure a loan, giving the lender certain rights over the property (Correct answer)
- A fee paid to a solicitor for conveyancing services
- A restriction on the use of land imposed by a planning authority
- A charge registered at the Land Registry for an overriding interest
Correct answer: A security interest granted over land to secure a loan, giving the lender certain rights over the property
A legal charge (or legal mortgage) under s.87 Law of Property Act 1925 is the method by which land is used as security for a loan. It is a legal interest in land and must be completed by deed and (for registered land) registered at HM Land Registry.
Question 4: What is an 'easement'?
- A right benefiting one piece of land (dominant) and burdening another (servient), such as a right of way (Correct answer)
- A temporary licence to use another's land
- A covenant restricting the use of land
- A right to use land shared with the owner
Correct answer: A right benefiting one piece of land (dominant) and burdening another (servient), such as a right of way
An easement is a right attached to land (the dominant tenement) that allows its owner to use or restrict the use of adjoining land (the servient tenement). Common examples include rights of way, rights of light, and drainage rights.
Question 5: What is the 'nemo dat' rule in property law?
- A person cannot transfer a better title than they have (Correct answer)
- Property cannot be sold without the owner's consent
- Third parties cannot acquire rights in land without registration
- Land can only be transferred by deed
Correct answer: A person cannot transfer a better title than they have
Nemo dat quod non habet ('no one gives what they do not have') means a person cannot transfer a better title to property than they themselves possess. This is fundamental to the law of title and protects true owners.
Question 6: What is 'adverse possession' (squatter's rights)?
- A mechanism by which a person in factual possession of land for the requisite period may acquire title to it (Correct answer)
- The right of a landowner to evict trespassers
- The right of a mortgagee to take possession of land on default
- The right to use a path across another's land by long use
Correct answer: A mechanism by which a person in factual possession of land for the requisite period may acquire title to it
Adverse possession allows a person who has been in factual, open, exclusive possession of land for a sufficient period (10 years for registered land under the Land Registration Act 2002; 12 years for unregistered land) to acquire title.
CILEx L3 Land Law Basics 1
What is the difference between 'freehold' and 'leasehold' ownership of land?